BoG sees recession at 7.5%

Bank of Greece Governor Yannis Stournaras revised on Tuesday the central bank's baseline estimate about this year's economic contraction in Greece from 5.8% to 7.5%, with the adverse scenario remaining at 9.4%, depending on pandemic-related developments.

Speaking at the online conference of the Ekyklos think tank, the central banker said that a common feature of all economies at the moment is the increase in households' and enterprises' savings, either due to an inability to spend because of restrictions or due to precaution.

This development, Stournaras explained, creates the conditions for long-term stagnation; this ought be averted at all costs, he stressed, through the appropriate use of fiscal and monetary policy and the right interventions in the credit system.

He went on to note that the performance of the Greek economy in the first half of the year,...

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