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Europe has agreed and ordered doses of vaccines and receiving them on time is the big bet we have to win. If vaccination is given at a fast pace, we will prevent the third wave of the pandemic and the economy will finally open. Greece has already started vaccinating its population and at the same time is gradually lifting the measures of the second lockdown.
Economic aid measures will continue as the government finances affected businesses and workers. The closed sectors of the economy and society are opening up and priority is given to schools and retail stores that are considered safer.
The government has drawn up a vaccination plan that will speed up the opening up of the economy. Doctors predict that autumn will be the end of the pandemic, although economic analysts warn that tourism must work in the summer. Tourism is the heavy industry of Greece and contributes many billions to the country’s GDP. However, it is the sector of the economy that can lead to the spread of covid-19 if no measures are taken.
Rating agencies believe that in the first half of 2021 there will be health measures that hinder the development of the Greek economy, although the year will end with growth of up to 5%. Fiscal debt is expected to reduce borrowing costs as well, which will help repay more expensive loans early.
Economic analysts point out that Greece needs to boost industry in addition to tourism as it has been hit less than service industry by pandemic measures and could play an important role in the economy.
The absorption of European funds is very important, as emphasized by political officials and economists. The total funding is projected to reach 5% of GDP for the coming years and utilizing this money will play an important role in the development of the economy. It is predicted that many companies are considering closing down or opening up with a much smaller number of staff. That is why the government plans to support these entrepreneurs in order to maintain jobs. Some financial measures that will be in force in the coming months are the subsidy of rented businesses that were closed, the suspension of VAT payments, contributions and taxes until the autumn and the subsidy of their loan installments for up to nine months.
An important element in 2020 was that new entrepreneurship increased to 8.2% of the population from 6.4% in 2019. Crucial for young people with startups is the support at the financial level, tax but also at the level of facilities and equipment. Greece must focus on the export growth of Greek companies, the development of tourism sector and the attraction of investments. The pandemic will end but the road to economic growth will be difficult again.
