GREEK ECONOMY

The economic collapse that has been taking place in recent weeks has been unprecedented: thousands of overnight cancellations in AirBnB apartments, occupancy rates at Athens hotels at less than 20 percent, unprecedented cancellations in summer destinations, empty shopping malls, brakes drawn on trucks transporting industrial products and raw materials, large companies with a strategic role in the economy, such as Ae

Shocks to the economy are growing and forecasts are being revised lower day by day, while gloomy scenarios for GDP foresee losses of up to 2 billion euros for this year. If the coronavirus continues to spread at the same rate in the next two months, the economic downturn will be massive.

The forecast drop in gross domestic product for 2020 ranges from 0.4 percent to 0.9 percent, in comparison with initial estimates for the year, according to analysts from Alpha Bank. According to the bank, this year's growth momentum, and especially the next quarter's, will be determined, by the duration of the Covid-19 epidemic and Greece's refugee crisis.

The impact on the real economy will be determined by the duration of the epidemic and the progress made in tackling it. If the epidemic eases, with the help of improved weather, or a vaccine, then a rapid reversal of the situation can occur. Adversely, if it continues to spread, then the effects can be drastic, especially in countries with fragile economies, such as Greece.

"We aredealing with the problem with responsibility, we are examining the consequences of the problem, we are reviewing all alternative solutions and we have specific measures for each scenario in an emergency," the Greek FinMin said, adding that Greece was coordinating its contacts with representatives of the economy currently affected, or likely to be affected, by the spreading of the coronavirus, in order to take the necessary actions.

Additionally, the 2020 state budget signifies the end of the vicious cycle of over-taxation, deals with the growth and investment gap which has stalled Greece in recent years in terms of investments, Petsas noted.

The survey was presented by Panagiotis Hasapis, executive vice-president of SEVE. He said 2018 was a landmark year for Greek exports as the value of exports surpassed the 33-billion-euros barrier while export of goods grew to 17.7 pct of Greek GDP in 2018 from 16.0 pct in 2017.

Addressing the 30th Greek Economic Summit organised by the American-Hellenic Chamber of Commerce, Staikouras said the Greek economy will grow by 2.0 pct this year and by 2.8 pct in 2020.

Speaking in Parliament, the Greek Finance minister made special mention to measures supporting the Greek society, focusing on the middle class and lower classes, such as a reduction in a special property tax, a new tax legislation, a heating subsidy, expanding the tax base, etc.

The decision, to be activated on January 1, 2020, will mean that "short-term export credit risks towards Greece will be considered as marketable to be covered by private insurers," the European Commission said in an announcement.