Greece set for ‘goldilocks status’
The Greek economy is poised to stage an "explosive recovery" in the second half of the year, with growth at 7% and 5% in the second and third quarter respectively on a quarterly basis, leading up to an annual growth rate of 9.5% in 2022, according to a report by Piraeus Bank, one of Greece's four biggest lenders.
The economic analysis and investment strategy report by Piraeus expects the economy to rebound by 4.5% in 2021 as a whole, after an estimated contraction of 9.5% in 2020.
The bank's analysts explain that its projections show that instead of "scarring" and "hysteresis," the terms economists use to describe the long-term impact of a negative factor such as Covid-19, Greece is entering "goldilocks status."
Starting off with exceptionally low levels of activity - with excess production capacity overflowing, and taking into account the new tax cut policy,...