RND – The Greek economy is taking off

“The Greek economy is taking off”, is the title of an article in the RND network, which points out, among other things, that “Greece is recovering from the economic consequences of the pandemic much faster than expected”, while the main driving forces of growth are growing investments and rise of tourism.

According to the data announced by the Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair, it is pointed out in the response, Greece by the middle of the year exceeded the pre-crisis level of 2019 in relation to GDP, in contrast, for example, with Germany, France or Italy.

“Greece’s upward trend is stable, as it relies mainly on growing investment and higher export earnings,” said the author, citing a forecast by Scope Credit, which expects an increase of 8.6%, as in the third quarter of the year, there is a big increase in tourism, as it reports.

“The return the industry is experiencing this summer is spectacular. Islands such as Mykonos and Santorini recorded even more visitors in August than in the record year 2019”, it is emphasized in the report.

Special mention is made of the increase in employment, with the jobs in June 2021 being 53,400 more than in 2019. “The increase is mainly a result of the funds given to deal with the coronavirus crisis, “The government has supported companies that faced difficulties during the pandemic and secured jobs that were at risk.”

The author also points out that, despite the increase in debt, due to additional expenses and the reduction of tax revenues, Greece is not threatened, according to market analysts, with new payment difficulties. Proof is the low interest rates at which it borrows from the capital markets.

“The billions the country expects by 2026 from the EU Coronavirus Recovery Fund will ensure steady economic growth in the coming years. In this way, the debt ratio will be reduced “, the author estimates and notes that Scope expects a reduction of the debt to 186% by 2026.