Is Greece a safer destination now?

During the euro-zone crisis at the beginning of the last decade, many European citizens felt they were paying an unfair price for Greece’s problems. As the first wave of the coronavirus pandemic fades in Europe, it’s the turn of the Greek people to feel aggrieved.
The country has had one of the best Covid-19 records in the European Union, thanks to the government’s swift decision to enforce a lockdown and widespread compliance among the population. There have been 185 registered deaths so far from the disease, out of a population of about 10.7 million people — equivalent to 17 deaths per million people. Spain and Italy had 578 and 560 registered deaths per million respectively, and “excess deaths” relative to the previous years were even higher.
Yet the economic pain for Greece may be similar to other southern European nations. The European Commission forecasts that Greek national income will shrink by 9.7% this year, compared with 9.5% in Italy and 9.4% in Spain. The country is, however, expected to rebound more sharply in 2021, by 7.9%, compared with an expectation of 6.5% growth for Italy and 7% for Spain. Greece’s initial contraction — set to be the largest in the EU — is happening because the economy relies heavily on tourism. As foreigners stay at home, hotels and restaurants suffer.
The government hopes that its success in coping with the pandemic will help it promote the country as a safer destination. But the success of the summer holiday season depends on what’s happening elsewhere too. A jump in Covid-19 cases in several Balkan states has prompted Athens to postpone the reopening of its northern border for all countries — except for Bulgaria — until the end of the month. While Greece has reopened its main airports to many international flights, new outbreaks would cause a rethink. Still, Greece’s successful management so far of the pandemic does carry a prize. For a start, prime minister Kyriakos Mitsotakis has been able to reopen the domestic economy before other countries such as Britain. This will reduce the hit on gross domestic product.

—Bloomberg