Greece’s gross domestic product (GDP) is projected to expand 6.1 per cent in 2021 and 4.5 per cent next year after contracting 8.2 per cent in 2020, according to the government’s 2022 draft budget that was tabled in Parliament.
By the end of 2021, the Greek economy is expected to recover more than two-thirds of the losses suffered in 2020 due to the Covid-19 pandemic, Finance Minister Christos Staikouras said in a statement on Monday.
The government initially forecast 3.6 per cent GDP growth for this year a few months ago, but the first signs of the gradual return to normality are visible, Xinhua news agency quoted the Minister.
The expansion of Greece’s GDP is supported by a rebound in tourism revenues, private consumption, exports and investments, among others, according to the draft budget.
The unemployment rate is projected to stand at 16 percent this year and 14.3 per cent next year.
The inflation rate is projected at 0.8 per cent in 2022.
Greece’s National Recovery and Resilience Plan is expected to increase the country’s 2022 GDP by 2.9 percentage points, and the gradual return to normality, based to a large extent on the Covid-19 vaccination program, will offer additional economic benefits, the Greek national news agency AMNA noted.
“With the available new financial tools, such as the Recovery Fund and the National Strategic Reference Framework (NSRF 2021-2027), Greece is ready to transition into a new era,” Staikouras said.