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“Recession 5%-10% due to tourism losses,” says Greek FinMin Staikouras

Τhe pandemic crisis costs the Greek GDP 2.5 points every month, Finance Minister Christos Staikouras said estimating that recession may be even at 10 percent. Speaking to Thema FM on Sunday, Staikouras stressed that the large stake of tourism in the Greek economy makes it more vulnerable to the crisis.

He acknowledged that although the initial forecast for GDP growth in 2020 was better in Greece than in other eurozone member states, it is now estimated that the recession will be at the same level as in other European countries, bringing a decrease of GDP by 5% -10% this year.

The finance minister noted that in the last Eurogroup the European Commission estimated the recession in Europe from 5% to 10% and that “every week the forecasts are unfortunately updated to the worst.”

“Greece, which started with better and higher dynamics than the other countries, was estimated to have more than double the economic growth rate compared to Europe, will be about the same as the European recession due to the greater exposure to our tourism,” he added.

Asked if there would be lending in terms of debt, he replied that important decisions had been made regarding fiscal easing and that Greece had the opportunity to take advantage of fiscal spending.

He said that Greece has the opportunity to finance the crisis conditionally, “we have a cash buffer today and it is up to us to deal with the crisis effectively.”

Regarding the measures taken, he noted that the government is trying to give a “comprehensive plan that is constantly enriching” and spoke of a “rational approach.”

Staikouras said that everything will depend on how the economy will function in the coming months.

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