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OECD: Greek economy to contract 10.1% in '20

Christian Fernsby |
Greece’s economy is seen contracting by 10.1% this year and to recover gradually, by 0.9% in 2021, “as ongoing virus outbreaks and restrictions weigh on services activity, exports, employment and investment”, the Organization for Economic Cooperation and Development said.

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Topics: GREEK   

The think tank revised down its July projections which were for 8-9.8% recession this year and 4.5% rebound next.

“In 2022, the recovery is projected to accelerate as the virus is better controlled with a vaccine having become more generally deployed, restrictions being eased globally and the government implementing new investment projects,” it said in its Economic Outlook. Greek economy is projected to expand by 6.6% in 2022.

OECD expects Greek budget to continue supporting activity and public debt is projected to decline from a peak of 214% of GDP in 2020.

“The ambitious public investment plans and access to low-cost financing for private investment will support domestic demand from late 2021. Investment may be stronger than projected if execution rates improve substantially and if take-up of loans from the EU Recovery and Resilience Facility is strong.”

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