Recovery of the Greek Economy
THE GREEK ECONOMY HAS BEEN BETTER PREPARED TO FACE A
GLOBAL SHOCK
At the outbreak of the COVID-19 crisis, Greece macro-fiscal position had been strengthened thanks to
sustained efforts on structural reforms - notably in the financial sector - and a healthy budget governance
A strong macroeconomic profile
Unemployment rate (% active population)
An enhanced financial sector
NPL ratio (% total loans)
A healthy budgetary position
27%
25%
24%
22%
19%
17%
2014
2015
2016
2017
2018
2019
41%
48%
49%
48%
46%
40%
Primary surplus (%GDP)
4,4%
4,5%
3,9%
3,8%
Real GDP growth rate (%)
1,3% 1,6%
1,9%
0,4%
33%
0,7%
(0,4%)
(0,5%)
-2,1%
2014
2015
2016
2017
2018
2019
2014
2015
2016 2017 2018 2019
2020
2014
2015
2016
2017
2018
2019
Source: Eurostat
Source: Bank of Greece
Source: Eurostat
Structural reforms have been
consistently implemented since the
Great Financial Crisis, with a focus on
public administration, financial stability
and competitiveness
These efforts enhanced Greece's
investment attractiveness and paved
the way for recent FDI decisions by
global corporates (Microsoft, AWS, ...)
throughout the crisis
RESILIENCE OF THE GREEK ECONOMY
Targeted structural reforms have
succeeded in improving financial
stability. Recent reforms such as the
new Insolvency Code are expected to
have a further positive impact
Together with the successful rollout of
the Hercules scheme, this has allowed
the NPL ratio to decrease from 49%
in 2016 to 33% as at end-2020
Greece has consistently outperformed
its fiscal targets, up until the activation
of the General Escape Clause at the
European level
This fiscal position has preserved
Greece public debt sustainability
It has also allowed to build sizable
liquidity reserves (c. EUR 32bn in end-
June 2021) to mitigate refinancing risks
1View entire presentation