Greek PM says economy to rebound 5.9pc this year

Greek Prime Minister Kyriakos Mitsotakis said the economy was set to grow by a better-than-expected 5.9 per cent this year and announced tax cuts and other relief measures to help businesses and households strained by the coronavirus pandemic.

Greece emerged from a decade-long financial crisis in 2018 but saw its economy slump again by 8.2 per cent last year amid restrictions to curb the spread of the Covid-19 pandemic, which also hurt its vital tourism industry.

The government's medium-term fiscal plan had projected growth of 3.6 per cent for 2021. "Today we are announcing the revision of the (growth) target for 2021 from 3.6 per cent to 5.9 per cent," Mitsotakis said in his annual policy address in the city of Thessaloniki.

"Our country is stronger today than it has been in many years. It is stronger economically, it is stronger geopolitically," he said. "Its image abroad has changed."