A report released last month by the Bank of Greece had estimated that the migrant crisis may cost Greece as much as 600 million euros this year, or approximately 0.3% of its gross domestic product.
Bank of Greece Director Yiannis Stournaras says now that the migrant cost will exceed the original estimate of 600 million as more and more refugees are forced to remain in the country as a result of Balkan border closures.
Greece is the main gateway to Europe for most of the refugees from Syria and other war-torn countries, but also for migrants coming from Asia and Africa.
Presently, there are more than 40,000 refugees and migrants stranded in Greece and their immediate future remains uncertain.
The original estimate of 600 million euros “was based on the presumption that Greece was only a transit nation, but if now we have to host a large number of refugees, this estimate will have to be revised,” Stournaras told Italy’s Sole 24 Ore newspaper.
In a report released just last week, the Organization for Economic Cooperation and Development said Greece would need help to deal with the strain that the migrant crisis would put on its economy, and German Chancellor Angela Merkel has also said that Greece will not be left alone.
The Greek economy will also receive a much needed boost if a debt relief deal comes through, but when this might happen remains uncertain.
Stournaras said that debt relief had been promised in 2015 if Greece met its obligations, but “the promise has not yet been fulfilled.”
(Source: AAP)
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