Capital Economics: Recovery Fund Boosted Greece’s GDP by up to 1.5%

Capital Economics estimated Greece’s payment from the (NGEU) betterment programme astatine 1.5% of GDP implicit its six-year implementation period, noting that the funds person served arsenic a important operator of investment, peculiarly successful the integer and greenish sectors.

Although the programme unsocial does not afloat explicate the caller show of the economies involved, Capital Economics considers it an important source of support for economical activity. Established successful 2020 and moving done 2026, the inaugural includes the (RRF), with a total envelope of up to €725 cardinal — astir 4% of the European Union’s GDP.

While the programme is acceptable to reason successful 2026, its effects are expected to widen into the pursuing years, helping to forestall a “hard landing” successful concern activity.

Countries astir affected by the pandemic — including Greece, Spain and Italy — received the largest stock of grants. Data amusement that concern successful Greece roseate by 70% betwixt the extremity of 2019 and the 2nd 4th of 2025, compared with a 37% summation successful Italy and conscionable 6% crossed the eurozone arsenic a whole.

In broader terms, Capital Economics notes that the wide interaction of the RRF connected maturation has been comparatively modest. (ECB) estimates suggest the program’s publication to eurozone GDP betwixt 2020 and 2024 did not transcend 0.2%, with Italy and Spain seeing gains of 0.5%–0.8%. Greece and Croatia, however, look to person benefited much substantially owed to higher levels of funding.

Source: tovima.com