A recent update on the overall economic state of the Hellenic Republic made by the Bank of Greece has shown that the country has had a remarkable recovery in the tourism industry.
According to the forecasts made by the Bank of Greece, the growth rate in the country’s economy was expected to turn out at 7.2 per cent in 2021. This represents a significant increase compared to 2020 when the country was dealing with the virus and keeping strict restrictions in place.
As for this year, it is expected that Greece will register a 5.0 per cent growth, whereas, in 2023, the growth is projected to be 3.9 per cent, provided that there is continued support from international tourism, SchengenVisaInfo.com reports.
“Growth is projected to be 5.0 per cent in 2022, and 3.9 per cent in 2023, subject to continued strong support from international tourism, euro area recovery, and an acceleration of investment,” the Bank of Greece explained.
Even though the data has shown that Greece is expected to register positive trends in its tourism industry, there are still some downside risks.
These risks are related to the evolution of the COVID-19 and the Omicron variant, which could weaken travellers’ confidence, reduce tourism flows, and slow the recovery of the economy.
“The main challenge for the Greek economy in the short term is to contain the pandemic more effectively, as vaccination coverage of the population falls short of the EU average, while the health impact of the pandemic is more severe by European standards,” the statement of the Bank of Greece reads.
Nonetheless, it has been emphasised that the prospects for the Greek economy remain positive.
Greece’s economic activity recovered at a fast pace during 2021 after a significant drop in 2020 due to the rules imposed to prevent the further spread of the COVID-19 pandemic. After the country reopened for travellers, its GDP rebounded significantly in the second half of the year.
Apart from the increase in the tourism sector, the country expects to register high rates in the exports of goods during 2022 and 2023 as the global environment improves and supply bottlenecks dissipate.
Previously, SchengenVisaInfo.com reported that the number of international tourists who visited Greece doubled in the first ten months of 2021.German tourists accounted for the biggest spenders in Greece during this period.