Tourism Helping Greece’s Economy Bounce Back

Government officials in Greece said they are forecasting the national economy will grow by 4.5-to-5 percent this year, due in part to the resilience of the tourism sector.

According to Reuters.com, the Greek think tank IOBE announced Monday the country’s economy was projected to have climbed 9.0-to-9.5 percent in 2021 due to the tourism industry’s 76.6 percent year-on-year increase over the first nine months of the year.

The IOBE’s baseline scenario forecasts another strong performance this year, with tourism revenues reaching 80-to-90 percent of the record-setting totals registered in 2019. The group’s estimates are slightly above the government’s 4.5 percent growth forecast.

“Despite the fact that last year’s base will be higher, we are revising growth a bit upwards as the economy shows strong dynamism,” IOBE head Nikos Vettas said. “This inflation rate is not something the economy cannot handle.”

In addition, the impact of the resurgent tourism industry is expected to bring down unemployment to an average of 13.5 percent next year. Consumer inflation is expected to slow to 1.5-2.0 percent in 2022.

In terms of coronavirus vaccination, Greece will only grant entry to travelers whose final dose of a vaccination schedule was given within the last seven months, unless they’ve also received a booster injection, starting in February.