Last Update: 11 July 2022, 11:03 AM IST
The tourism sector is important to Greece and the industry accounts for about a fifth of its economy and more than a quarter of its jobs.
While a cost-of-life crisis has meant that European consumers have cut spending, foreign travel has proved to be an exception and tourists are flocking to Greece.
According to the head of the central bank, the Greek economy could grow more than expected as more tourists return to the country.
“An expansion of 3.2% is our baseline scenario at the Bank of Greece, but it is based on the assumption that revenue from travel, which we call tourism, is going to be 80% of 2019 revenue,” said Yanis Stornras . in an interview on Saturday. “It looks like it’s going to be closer to 100%. So 3.2% is probably on the low end of the probability distribution.
The tourism sector is important to Greece and the industry accounts for about a fifth of its economy and more than a quarter of its jobs. While a cost-of-life crisis has meant that European consumers have cut back on some expenses, foreign travel has proved to be an exception and tourists are flocking to Greece.
The country is in a better position than some of its euro-area peers with regard to the threat of Russia cutting energy delivery. Stornras said Greece is likely to avoid a recession should shipments stop altogether.
“Greece has quite a variety of natural gas sources from liquefied natural gas – it has done its homework for several months,” he said. A complete stop would mean “the growth rate falls a lot, but it doesn’t turn negative,” he said. “We will not fall into recession.”
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