Eleven years after the economic crisis, Greece is gradually breaking out of the crisis swamp. According to the CEIC Global database, the unemployment rate in Greece has declined from 27.9% in July 2013 up to 16.9% in July 2020. Domestic demand and fewer net exports contributed greatly to Greece’s economic recovery. With the help of tourism and the default of debt, it seemed only a matter of time before the Greek economy and unemployment rate is fully recovered.
Despite the apparent recovery, the economy has declined due to the Covid-19 in the last year. It is estimated that 31 million tourists have visited Greece in 2019, according the outside source. This is nearly three times the Greek population of 11 million reported from the other reference. Around a quarter of all jobs in Greece largely depends on tourism. Due to the pandemic and lockdowns, restrictions on traveling have increased as well as consumption opportunities. According to the outside source, it is expected that the unemployment rate could rise to 20% in the following year due to a major fall in income and a decline in exports, and up to 160,000 jobs are estimated to be lost and the unemployment rate is assumed to increase up to 16.5% in 2021.
The Covid-19 pandemic has sent a major international economic recession and severe economic disruption in several areas. Nonetheless, Finance Minister Christos Staikouras assured that Greece will not be as heavily impacted by the pandemic as other countries. The Greek government also prohibited layoffs and extended unemployment benefits. With various campaigns to boost tourism in Greece once more, the economy and unemployment are showing resilience.
By: Jung Seo Yoon