Greece submits draft budget plan, expects economic recovery amid pandemic woes

Greece's economy is expected to make up for its pandemic-era losses it suffered last year in the fourth quarter of 2022, according to the government's draft budget tabled in parliament on Monday.

Following a slump of 8.2% in 2020, the country's GDP is expected to grow by 6.1% in 2021 and 4.5% next year, the budget plan indicates.

Despite restrictions put in place to curb coronavirus infections, the economy has already recovered more than two-thirds of its lost GDP in a single year, Finance Minister Christos Staikouras told lawmakers, presenting the budget.

Private consumption is projected to rise by 2.9% this year after a decline of 5.2% in 2020, while growth next year is expected to reach 2.9%.

After rising by 2.7% in 2020, Greece's public consumption is expected to increase by 4.1% this year and fall 2.8% in 2022 as the government gradually lifts support measures.

In 2020, private investment fell by 0.6%, but is expected surge 11.1% this year and 23.4% in 2022 with the help of finances from the EU's recovery fund.

Exports and imports are both expected to soar upwards.

Exports had fallen by 21.7% in 2020 and are expected to rise 14% this year and 11.1% in 2022, while imports are projected to rise 6.6% this year and 8.9% in 2022 after falling 6.8% in 2020.

Unemployment is forecast to fall to 16% this year and to 14.3% in 2022.

Additional household-related relief measures will be introduced with the new budget plan meant to speed up normalization after the pandemic.

After years of recession and austerity measures, the country had just managed to recover and enter the market stronger when the coronavirus struck last year.

According to a study conducted by the UK-based Grant-Thornton accounting and services network, "69% of the total turnover of Greek businesses were directly affected by the COVID-19 pandemic as a result of limitation or even cessation of their operations."