Greece amid Coronavirus Pandemic: Economic Aspects

Abstract

The COVID-19 pandemic has become a serious test for the Hellenic Republic, which still has not recovered from the consequences of the debt crisis and the «great recession» of the late 2000s and the first half of the 2010s. Thanks to the strict quarantine, Greece, unlike other South European countries, managed to significantly slow down the spread of the disease and avoid large casualties. At the same time, the partial shutdown of the economy in the spring of 2020 caused a sharp decline in economic activity, which was only partially compensated by stimulus measures to support the population and businesses. The economy was also affected by the drop in overseas demand for Greek services, primarily tourism and transport. Further economic dynamics will depend, first of all, on three factors – external economic conditions, the size of financial assistance from the EU and the efficiency of its spending, as well as the government’s readiness to continue institution- al reforms aimed at increasing economic competitiveness.

Keywords

• greece
• covid-19
• quarantine
• recession
• public finance
• labour market
• tourism