According to a report by the National Bank of Greece (NBG) last week, the liquidity gap for Greek businesses will be halved this year with tourism-related activities remaining under strain.
The severe blow Greek businesses took in 2020 on account of the COVID-19 pandemic will be eased by the second half of 2021, according to the new report. Analysts at NBG say Greek business sector sales should increase by 8.1 percent in 2021, remaining however 6 percent lower than 2019 levels.
Also in the report, the analysts discuss Greece’s tourism sector, which was among the hardest hit. NBG says the sector working capital needs estimated at 1.3 billion euros, with the shortfall more severe in food services, reaching 18 percent of sales.
The bank says accommodation in the second half of 2021, although remaining significantly below its 2019 level – down by 38 percent – is expected to be about 50 percent higher than 2020, allowing the majority of hotels to open for the high season with estimated occupancy rates of about 45 percent – similar to 2020 for 60 percent of open hotels, said the report.
In addition, tourism-related sectors such as accommodation and food services will recover slower remaining significantly below their 2019 levels. According to the report, the liquidity gap in accommodation is at 40 percent of sales, at 41 percent of sales for food services, and at 14 percent of sales for transport.
Read the full report here.
Source: GTP