Greece has reserves to help economy fight virus impact

Significance

This is one of several temporary ECB measures against tightening liquidity in the euro-area due to the coronavirus pandemic which in Greece has cut official GDP forecasts successively from 2.4% growth to zero and now to a 1-3% recession. The depth of the recession will depend on how long the crisis lasts and the severity of lockdown arrangements in Greece and abroad. In 2020-21, the Greek economy will rely more than ever on direct and indirect support from EU institutions.

Impacts

• Greek exports will be additionally hit by low global oil prices.
• Revival in domestic real estate market is likely to be halted, if not reversed.
• External demand for Greek tourism services is likely to plunge as governments discourage foreign travel to avoid a pandemic second wave.