OECD to present Economic Survey of Greece
The OECD is set to release today its Economic Survey of Greece, a whole-picture analysis of the country’s current economic position and prospects for future growth.
The report will likely build off a broader, global economic report that the OECD released last month and incorporate new economic data shared by Greece. Although the report commended the country for its early action taken to mitigate the worst public health effects of COVID-19, Greece was unable to deter the associated economic fallout. Athens projects the economy to contract by 8% this year, including a staggering 16% contraction in the second quarter. The country is widely expected to enter a recession before the year’s end.
Prospects for a return to growth anytime soon are slim for Greece. It relies heavily on tourism and international visitors to drive its economy—an industry whose recovery has been stunted due to travel restrictions and low consumer confidence. Desperately needed grants and loans (approximately $82.4 billion) from the freshly-inked EU recovery fund will help bolster the country’s budget. However, strict repayment terms may cause additional fiscal headaches down the line. In the short-term, expect the government to utilise these fiscal resources as an economic backstop while continuing to closely manage public health measures to prevent a second wave of infections.
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