The tragic state of the Greek economywhich lives on subsidies and loans, is the central theme of the report EU about country.
Serious performance lag And attracting private investmenthuge imports due to the weakness of domestic production and, accordingly, a large deficit in the foreign trade balance – So Ecofin presents a picture of collapse. Thus we have:
1. According to the Bank of Greece, net exports of goods (excluding fuel and inflation) fell by 3.2% in May, while imports rose by 2.3%. This means a 5% increase in the deficit. An economy that owes the state 400 billion euros has a deficit of about 170% of GDP. We entered the memorandum with a debt of 320 billion euros and 125% of GDP.
Today, statements were made by the head of the Central Bank and the domestic representative of creditors from his position, Surnara, who claimed that “In 40 years, Greece will see its deficit fall to 60% of GDP.”
They said the same thing in 2010 about 2030. Now the question is whether Greece as we know it will exist in terms of territorial integrity and national sovereignty in 40 years – at the rate at which Greeks as a whole, the inhabitants of the country, are disappearing.
2. The main undisclosed resource is tourismdespite the figurative reports of pro-government channels, is a “fraud” and in any case is not enough to save the fate of the country in the external openness. With Spain having 100 million tourists and Turkey over 45 million, Greece is struggling to exceed 20 million arrivals with a minimum per capita spending of 500 euros.
3. We We import almost twice as many goods by value as we export… The problem is practically insoluble.
Why is Greece's productivity growth among the lowest in the EU? “There is a significant and persistent gap between hourly productivity in Greece in purchasing power units and the corresponding productivity in the EU, given that in 2023 productivity in Greece was 57.4% of the EU average,” the EU report notes.
The Commission also states that “The very low level of aggregate investment in Greece is a drag on productivity growth.”
4. Net public investment increased significantly in 2023, but net private investment by value is among the lowest in the EU, the same report says. That is, there are no investments! But the government and its well-fed mouthpieces say exactly the opposite: “A wave of investments.”
5. And the “icing on the cake” is the report’s conclusion: “The Greek economy is heavily dependent on imports of capital goods, which makes businesses vulnerable to supply chain disruptions and unpredictable changes in producer prices.
6. Greece was thus unable to export goods of significant value, but in its imports it did not benefit as much as it might have from the advantages of the single market.
7. Greece has the lowest degree of integration in the single market, with average imports and exports of goods and services amounting to only 21.9% of GDP in 2022, compared to 46% on average across the EU.
8. Greece's innovation record is mediocre (Bah? What happened to the dreaded “startups” that will “transform the Greek economy”?)access to financing remains difficult (s.s.: there are practically no banks for financing citizens, except for plundering European money) and overdue debt affects liquidity.
More Stories
"High prices go through their cycle and, like the flu, they pass."- claims the fatalistic Greek Finance Ministry
Life after death: it is quite real
Cherkassy University Lecturer Fired Over Her Daughter's Criticism of the OCU