IMF: Greece’s economy grows 3.3% in 2021 and 5.4% in 2022

The International Monetary Fund predicts that Greece will grow 3.3% this year and 5.4% in 2022, following a remote survey it conducted to prepare an Article 4 report for Greece.

The main findings of this review are included in the fund’s mission statement, which was released today, and the results were analyzed at a press briefing by the IMF’s head for Greece, Dennis Botman.

In the IMF report, the authors praise the Greek government for its response to the pandemic. Greece’s economy reportedly contracted 8.2% in 2020, less than expected given Greece’s heavy dependence on tourism as well as existing vulnerabilities. “The government has provided one of the largest financial support packages in the eurozone, which has prevented corporate bankruptcies and kept workers in the labor market. At the same time, with this budget package, the ECB’s stimulus policy has protected the Greek banking sector and maintained favorable financial conditions, ”the IMF said in a statement.

IMF officials say the economy is expected to recover in 2021-2022, mainly thanks to European financing (NGEU), a significant increase in private consumption, which will be supported by an increase in deposits, as well as a resumption of tourism. On this basis, the fund expects to grow 3.3% this year and 5.4% in 2022, although it says signs of a pandemic will lead to a 3% GDP backlog in production, a problem that needs to be addressed through resource reallocation. And with interventions in the accumulated debt.

It is worth noting that the IMF in its report modestly kept silent about the significant increase in Greece’s public debt, the payment of which could “eat up” the entire growth of the economy. As a result, the country will in fact receive a further drop in living standards instead of growth.

The main findings of this review are included in the fund’s mission statement, which was released today, and the results were analyzed at a press briefing by the IMF’s head for Greece, Dennis Botman.

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