Greek economy to shrink by 5pc-9pc this year, hit by coronavirus

• Greece's government, which was previously aiming for 2.8pc growth this year, now expects a 4pc recession, its finance minister has said.
•  "Unemployment could rise to 19.3pc under the baseline scenario ... or even higher to 21.2pc under the adverse scenario,"

ATHENS: Greece's economy will contract by about 5.0pc this year under a baseline scenario but may face a deeper 9.0pc recession under an adverse one, due to the novel coronavirus impact, the country's influential think tank IOBE said on Wednesday.

The projection by the Foundation of Economic and Industrial Research (IOBE) in its quarterly review was a sharp downgrade of previous forecasts of 2.2pc-2.5pc growth made in early February.

"Unemployment could rise to 19.3pc under the baseline scenario ... or even higher to 21.2pc under the adverse scenario," the head of the think tank Nikos Vettas said.

Greece's government, which was previously aiming for 2.8pc growth this year, now expects a 4pc recession, its finance minister has said.