Staikouras says recession in 2020 may be limited to 5-8 pct with aid measures

Greece could limit this year’s recession to 5-8 percent after taking into account the government’s implemented and planned relief measures which will amount to 24 billion euros, the country’s Finance Minister Christos Staikouras said on Wednesday.

He said if support measures had not been taken, the recession could reach 13 percent this year.

Any additional month of quarantine or difficulty in air transport will increase recession by 2.5 to 3 percent, the minister said in comments to private broadcaster Skai. Especially in Greece, which is highly dependent on tourism, it may exceed 3 percent for July and August, he added.

The baseline scenario of the Greek Finance Ministry, submitted to Brussels early May, provides for a contraction of 4.7 percent before a 5.1 percent rebound in 2021. The adverse scenario points to a 7.9 percent drop in 2020 and an 8 percent jump in 2021.

The European Commission is expecting Greek GDP is to contract by 9.7 percent in 2020, before rebounding in 2021.