UBS “sees” a strong recovery for Greece, arguing that the situation in the Greek economy will continue to improve.
The investment bank estimates that there will be strong strengthening of the domestic economy both this year and in 2022, moving well above the average level of estimates of international investment houses.
UBS, although it has reservations about the course of tourism, sees a growth rate of 5.6% this year, and 6% in 2022.
At the same time, it estimates that the domestic economy will exceed the Eurozone averages, where it expects growth of 4.3% and 5.3% in 2021 and 2022, respectively.
He estimates that unemployment will fall from 16.3% in 2020 to 15.7% in 2021, reaching 14.7% in 2022, but public debt will fall slightly from 207% of GDP in 2020 to 202% this year, declining in 2022 to 193% of GDP.
Optimism
The optimism also comes from the economic data of the first quarter which so far show resilience to economic activity, with industrial production being stronger than in 2017, while positive signals are sent by the economic climate for March and from the course of tax revenue.
The primary deficit of 3.4 billion euros in the first quarter was better than the estimate of UBS by 0.9 billion euros, which reflects resilience in tax collection.
At the same time, UBS “sees” that the recovery will come for a number of reasons, such as the boost in consumer demand after the end of the restrictions, and the retail trade that has been open since mid-April. The utilization of European resources, the Recovery Fund expected at the end of July and finally the package of measures to support the economy, which amounts to 14 billion euros or 8.5% of GDP, complete the package.
At the same time, UBS records the reduction of the corporate tax rate from 24% to 22%, but maintains its reservations about the possible revenues from the tourism sector.
Latest News
Athens Int’l Airport Wins Top Prize at Routes Europe Awards
The Routes business is focused entirely on aviation route development and the company's portfolio includes events, media and online businesses
IOBE: Income Gap Between Poor and Wealthy Greeks Widens
The findings in the analysis, entitled “Progressivity in Income Taxation in Greece, 2012-2021", paint a bleak picture for Greeks in the bottom half of the income bracket, warning that income inequality is growing
Study Finds 4 in 10 Greeks to Slash Easter Spending
This year, hit by persistent inflation, many Greeks will be dishing out less on food, drink and gifts for Orthodox Easter on May 5
ELSTAT: Overnight Stays in Greece Up in Feb.
The provisional monthly data revealed that arrivals at tourist accommodations amounted to 773,104 and overnight stays were 1,677,685
Electric Energy: Greece’s New Sustainable Export
Moreover, a surplus of generated electricity cannot be fully absorbed by domestic grids and this excess power finds eager buyers in the form of companies entering into Power Purchase Agreements (PPAs), willing to pay a premium for clean energy
IOBE Revises Greek GDP Growth Downward, to 2.1% For 2024
Annual inflation is expected to reach 3%, up from the previous forecast of 2.8%
Last Sections of 136km E65 Highway Inaugurated on Tues.
Athens to Karditsa drive time is expected to drop to two and a half hours (under normal conditions), and some three hours from Athens to Trikala
Reuters: Greece to Repay More Bailout Loans Ahead of Maturity in 2023
The country has relied solely on international markets for its borrowing needs since a third institutional bailout ended in 2018
Ag Min. Avgenakis: Greece-China Cooperation in Research, Education in Agri-Food Sector
Greek minister tours cutting-edge hydroponics and robotics facilities at the Chinese Academy of Agricultural Sciences in Beijing
Mini Holiday Season in Greece for Upcoming Orthodox Easter
Occupancy rates reach up to 90% domestically for accommodations open ahead of peak summer season