The International Monetary Fund (IMF) recently released its World Economic Outlook in which it predicts that Greece could experience one of the worst recessions in the world due to the coronavirus pandemic.
The IMF said Athens will see its GDP decline by 10 percent in 2020, not far from the EU average of 7.5, but higher than any other euro area member state.
The fund predicts a 7.5 percent decline in the European economy, while the only nation with worse prospects than Greece in 2020 is the microstate of San Marino, which is expected to lose 12.2 percent of its GDP.
In Italy and Spain, two of the countries hardest hit by the pandemic, gross domestic product is expected to decline by 9.1 and 8 percent respectively.
For 2021, the IMF predicts a growth frenzy during the projected rebound from the virus. However, this will not make up for the damage suffered in almost all eurozone member states in 2020.
For Greece, the IMF is forecasting a growth rate of 5.1 percent for 2021, a little more than 4.7 percent of the euro zone average.
It must be noted, however, that the IMF does not have a good track record of predicting growth and recessions – particularly in relation to Greece, as it has failed several times in the past to calculate the country’s recovery rates from the financial crisis of the previous decade.