This year, the Greek economy will suffer a recession equal to or greater than that of the worst years of the 2008 crisis.
According to a report presented this Wednesday by the OECD, the recession will happen anyway, even if there is no second wave of covid-19.
If there is a second wave of the virus before the end of the year, the Greek economy will fall 9.8% in 2020 and, if contagion is controlled and there is no second wave, it will be 8%. Taking into account the two scenarios, Greece’s economy is only expected to partially recover in 2021. It may grow 4.5% if there is no resurgence of the disease and 2.3%, if any. Although in the last three years, the Greek economy has improved significantly, the country remains the one with the highest unemployment rate in the European Union. This year alone, the OECD estimates that the number of unemployed will increase by between 3.5 and 3.8 percentage points, affecting between 21% and 21.3% of the active population. The OECD recommended the Greek executive to increase anti-poverty programs, which mainly affect young people, by implementing policies to reduce unemployment. The report also called for a reduction in taxes.
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