KEPE Study: Tourism Can Drive Greek Economic Growth in 2021

The tourism sector can help the Greek economy recover post-Covid-19, said the country’s largest economics research institute on Friday.

The Center of Planning and Economic Research (KEPE) released a study titled “Can Tourism Save Growth for 2021?”, according to which the industry can for this year reinforce the Greek economy until other activities resume.

KEPE analysts underline, however, that this can only be temporary due to the special circumstances created by the Covid-19 pandemic.

The study goes on to add that tourism – due to its special characteristics – cannot be the country’s main pillar of growth long term, citing 2008-2019 performance findings.

KEPE points out that the positive effects of the National Recovery and Resilience plan as well as other activities in other industries will begin to show after 2022, which means that tourism is the only activity that can drive GDP upwards this year. Increasing tourist receipts by 4.54 billion euros is the “only way”, says KEPE, to offer the Greek economy a short-term growth stimulus that is very much necessary.

The research body notes that tourism performance will be key to growth in 2021 echoing government estimates which expect travel receipts this year to reach 50 percent of 2019 levels, or 4.54 billion euros.

Last week, Finance Minister Christos Staikouras forecast that the Greek economy will grow at a rate of 3.6 percent in 2021. An estimate which he said hinges on a 45 percent increase in tourism activity against 2019.

Staikouras made the projection after announcing that the Covid pandemic cost the Greek government 40 billion euros in the 2020-2021 period, which has gone into supporting impacted businesses, employees and households.