Greece should expect a decline of at least 6% in the economy this year due to lost revenue in the tourism sector following the coronavirus pandemic (COVID-19), according to a report published by the International Monetary Fund ( IMF), writes Agerpres.
Greece will be the second most affected country in the world in terms of the negative impact caused by the slowdown in tourism – only Thailand will have more negative effects – warns the IMF. In April, the international financial institution predicted that Greece would face the most severe recession among euro area countries, due to the pandemic.
The significant decline in hotel bookings, international travel and tourist arrivals will affect Greek tourism this year.
“The lost revenue in the tourism sector will exceed 2% of GDP, especially in Costa Rica, Egypt, Greece, Morocco, New Zealand, Portugal, Spain, Sri Lanka, Thailand and Turkey. The effects will be felt to some extent in 2021 and beyond, “the IMF report said.
The future looks bleak for Greece, especially if there is a second wave of infections. “Uncertainties are high but the macroeconomic consequences will be broader for economies with pre-existing vulnerabilities. A further deterioration in confidence in economies with pre-existing vulnerabilities – such as large current account deficits, a high percentage of foreign currency debt, and international reserves limited – they will increase the risks of external crises “, warns the International Monetary Fund.
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In May, the unemployment rate in Greece rose to 17% from 15.7% in April, shows data from the National Statistics Agency (ELSTAT).
The tourism sector, severely affected by the health crisis, is crucial for the Greek economy as it is responsible for more than 20% of Gross Domestic Product.
In 2019, Greece recorded a record year with over 34 million visitors. For this year, the representatives of the tourism sector believe that a realistic goal is a third of the number of visitors registered last year.
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