The projections of the IMF on the impact of the public health crisis on the Greek economy are dramatic.
The Fund’s report states that the Greek economy will lose 10 percent of GDP, the greatest recession in the eurozone.
That in turn will result in a leap of at least six percentage points in unemployment, from 19 percent to 22 percent or more.
The IMF (photo) projects approximately a nine percent drop in GDP for Italy and eight percent for Spain.
The main reason that the Greek economy is expected to fare worse is that it has already been devastated by its 10-year economic crisis.
The country has barely emerged from the decade long period of essential bankruptcy and the harsh austerity imposed by its creditors and bailout terms.
Because the bailout memorandums focused exclusively on austerity the country’s productive base remained in a shambles.
The weaknesses of the economic model and chronic dysfunctions were not addressed.
Greece appears to be adequately handling the current public health crisis.
By all indications, however, the country will be confronted by an economic Armageddon.
Even if the worst-case projections of the Cassandras of the IMF are belied there is no doubt that this will be a year of deep recession which means that Greece will be confronted with an army of unemployed.
Consequently, our attention and even more that of the government must focus on our most vulnerable fellow-citizens.
The battle to protect them will far outlast the public health crisis.