Capital Economics rates the Greek economy as amongst the most vulnerable due to the ongoing coronavirus pandemic, citing two main reasons, namely, a significant dependence on tourism and the country’s high ratio of foreign debt, which is expected to rise even further.
Capital Economics has also issued one of the most ominous forecasts for recession this year in Greece, in the wake of the punishing efforts of the Covid-19 “lockdown” and its subsequent fall-out, pointing to an economic implosion of 15 percent, and rising only by 10 percent in 2021.
According to the London-based economic research consultancy, four categories of countries at risk for an extended crisis include countries that cannot control the pandemic, i.e. states in less developed parts of the world; countries with sectors drastically affected by the pandemic, such Greece, Thailand and Morocco, which rely heavily on tourism and travel revenue; countries threatened with fiscal disruption, which also includes Greece, due to risks of budget deficits and debt ratios.
