Economic Overview

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

Due to Greece's heavy reliance on tourism and the hospitality industry, the country was among the most severely hit by the Covid-19-induced crisis. However, the Greek economy rebounded strongly and GDP reached its pre-pandemic level already in the second half of 2021. In 2022, the overall growth was estimated at 5.2% (IMF): after a better-than-expected performance in the first half of the year owing to rebounding exports and a historical peak of the tourism sector, the rise in energy costs and a worsening external environment hampered growth in the second part of the year. Rising input costs and slowing demand are expected to hinder growth in 2023, with the IMF forecasting a sluggish GDP increase of 1.8%. For 2024, growth is set to pick up moderately to 2.2%, driven by the gradual recovery of private consumption and improving external demand.

The general government deficit decreased from to 2.3% of GDP in 2022 (from 4.6% one year earlier) thanks to the phasing out of pandemic-related measures and the economic recovery, although the measures taken to mitigate the impact of high energy prices (e.g. subsidies to energy users and cuts to indirect taxes on transport services) weighted for around 1.1% of GDP. The general government deficit is expected to narrow further to 1.9% of GDP this year and 1.6% in 2024 (IMF). The public debt-to-GDP ratio stood at 177.6% of GDP in 2022 and is forecast to further decrease to 169.8% in 2023 and 163.8% in 2024 supported by the increase in nominal GDP and lower deficits. Despite the primary surpluses recorded in recent years, the ratio is still among the highest in the world. After being in the target area in 2021 (0.6%), inflation reached a record-high level of 9.2% in 2022 due to rising energy prices and the pass-through to other components. As energy prices stabilise over the forecast horizon and euro area monetary tightening takes effect, inflation is projected to moderate to 3.2% this year and 1.6% in 2024 (IMF).

Weakening job creation and the absence of the indexation of public wages and social benefits are expected to keep nominal wage growth below inflation. Overall, the unemployment rate was estimated at 12.6% in 2022, with employment reaching its highest level since 2010. Nevertheless, Greece is experiencing one of the largest increases in labour shortages among EU countries, especially in the construction sector. The IMF expects the unemployment rate to decrease to 12.2% in 2023 and 11.4% in 2024. According to the latest data by Eurostat, Greece has a real GDP per capita of EUR 17,610, well below the EU average (EUR 27,880).

Foreign Trade

Greece has an export-oriented economy, with trade representing 89% of GDP (World Bank, latest data available). According to data by the Hellenic Statistical Authority, fuel had the largest share of exports for 2021 (28.2%) followed by raw material (15.6%), food products (14.8%) and chemicals (14.2%). As per imports, fuel had the lion’s share of imports (26.4%) followed by transport material and machinery (19.2%) and chemicals (17.0%).

Over the course of 2021, exports to the European Union accounted for 53.7% of the total. The main trading partners were Italy (10.6%), Germany (7.8%), Cyprus (6.4%), Turkey (5.8%) and Bulgaria (5%). Concerning imports, Germany was the main trading partner (12.4%), followed by Italy (9%), China (7.7%), Russia (6.3%) and Iraq (6%). Overall, the EU accounted for 51.2% of total imports (Hellenic Statistical Authority).

Data by WTO shows that in 2021 exports of goods reached USD 47.1 billion, marking a 34.1% increase year-on-year; whereas imports stood at EUR 75.8 billion (+36.2% y-o-y). As per services, exports totalled USD 41.4 billion against USD 26 billion of imports (+60.4% and +49.6% year-on-year, respectively). The World Bank estimated the country’s trade deficit at 7.7% of GDP in 2021, the same level as the previous year. The latest figures from the Hellenic Statistical Authority show that the total value of imports for the 10-month period from January to October 2022 amounted to EUR 45.3 billion (+39.7% y-o-y), while exports stood at EUR 76.7 billion (+48.4% y-o-y). In the same period, the deficit of the trade balance reached EUR 31.3 billion, up by 63.2% over the year.

COVID-19 Country Response

Travel restrictions

Regularly updated travel information for all countries with regards to Covid-19 related entry regulations, flight bans, test and vaccines requirements is available on TravelDoc Infopage.
To find information about the current travel regulations, including health requirements, it is also advised to consult Travel Regulations Map provided and updated on a daily basis by IATA.

Import & export restrictions

A general overview of trade restrictions which were adopted by different countries during the COVID-19 pandemic is available on the International Trade Centre's COVID-19 Temporary Trade Measures webpage.

Economic recovery plan

The summary of the EU’s economic response to the COVID-19 pandemic is available on the website of the European Council.
For the general overview of the key economic policy responses to the COVID-19 outbreak (fiscal, monetary and macroeconomic) in Greece, please consult the country's dedicated section in the IMF’s Policy Tracker platform.

Support plan for businesses

For an evaluation of impact of the Covid pandemic on SMEs and an inventory of country responses to foster SME resilience, refer to the OECD's SME Covid-19 Policy Responses document.
You can also consult the World Bank's Map of SME-Support Measures in Response to COVID-19.