GREECE
SUBMITTED BY:
Aarshia Arora(166)
Kaushik Dutta(195)
Sakshi Jaikray(222)
Sakshi Khurana(223)
Siddhant Jain(230)
Vivek
Dharmarajan(243)
These claims though were later justified because the deficit was calculated using
the ESA79 methodology that was in force during the time of Greeces Eurozone
entry and the calculation by that methodology led to a figure of below 3% deficit.
This graph compares the real per capita output for Greece, Britain and Denmark
the two countries (Britain and Denmark) which are in the European Union but
not in the euro zone. These levels are common-sized. In absolute numbers,
although Denmark and Britain have traditionally enjoyed a richer economy, but
Greece caught-up with the growth during its membership in the euro. While
some of that initial burst of growth has been sacrificed during the later
recessionary periods, it is closer to the Danish and British per capita income
levels as a euro member than when it had joined the Drachma, single currency.
This
shows
that
the
decision
to
join
wasn't a
big
mistake.
Since 2000, Greece saw GDP growth levels that were higher than the Eurozone
average, the peak being at 5.9% in 2003 and then a 5.5% in 2006. However,
unemployment and inflation rates although lower than before, were still higher
than in most euro-area countries. In 2002, the Greek government debt stood at
99% of GDP.
The EU aid adds about 3.3% to the Greek GDP. Greece is a major beneficiary of
the Common Agricultural Policy of the European Union. After the entry into the
Eurozone, quite a big percentage of its agricultural infrastructure has been
upgraded and as a result the agricultural output has increased commensurately.
Organic farming has increased by 885%, the highest increase in the Eurozone,
and all this between 2000 and 2007. In 2007, Greece was accountable for 19% of
the European Unions fishing output in the Mediterranean Sea, ranked third with
85,493 tons, and ranked first in the number of fishing vessels in the
Mediterranean between European Union members. The country ranked 11th in
the EU in total quantity of fish caught, with 87,461 tons. Privatization of stateowned enterprises has moved at a relatively slow pace, especially in the
telecommunications, banking, aerospace, and energy sectors. Preparations for
the 2004 Olympics drove investment heavily in the year 2003 and can be seen
clearly in the numbers.
Entrance into the euro zone was dependent on certain reforms and a certain
level of economic discipline on part of the Greek government. Although Greece
fell short of the standards of good behaviour other euro-zone members had in
mind, it had positive effects on the economy. The membership of the euro zone
didn't turn Greece into Germany overnight, but it has left Greece in better shape.
22% cut in minimum wage from the current 750 per month.
Holiday wage bonuses (one extra months of full wage being paid each
year) are permanently cancelled.
150,000 jobs cut from state sector by 2015, of which 15,000 shall be cut
by the end of 2012.
Industry sectors are given the right to negotiate lower wages depending
on economic development.
Public pension cuts on average between 5% and 15% through the removal of
two seasonal bonuses.
An increase of the retirement age from 65 to 67.
Additional wage cuts for civil servants up to 20%
Public salary wage cuts up to 30%.
Abolishing 15,000 state jobs by the end of 2014, including 4,000 in 2013.
Making it easier to fire civil servants. Increasing the working hours of
teachers.
A contentious plan for thousands of layoffs and wage cuts for civil service
workers.
17 June 2012 Early elections are held. The New Democracy party leads,
winning 29.7% of the popular vote, but doesn't win a majority of seats in
parliament. Four days later, a coalition government is formed between New
Democracy, PASOK and DIMAR. Antonis Samaras, the president of New
Democracy, becomes the new Prime Minister
State of Greek economy in 2012-13
Budget deficit was 8.7% of GDP in 2012 which increased to 12.3% of GDP
in 2013.
Total debt was 156.9% of GDP in 212 which increased to 175% of GDP in
2013.
GDP growth rate was -6.6% in 2012 which improved to -3.9% in 2013.
On 30 November 2013, Greece's credit rating is upgraded by Moody's to
Caa3 from C.
On 25 may 2012, The Athens Stock Exchange general index falls below
500 points for the first time.
Unemployment
Unemployment was at an all-time high in 2013 with third quarter of 2013
recording highest unemployment rate in past 5 years.
Unemployment rate
30
25
21.9
23.9
25.5
26.3
27
27.6
27.8
27.6
2012
(Q3)
2012
(Q1)
2013
(Q1)
2012
(Q2)
2012
(Q3)
2012
(Q4)
20
15
10
5
0
2012
(Q1)
2012
(Q2)
On 15th August, 2015, Greece clinched a three-year bailout worth 86bn (60bn)
after parliamentarians in Athens backed the deal, and Germany backed down on
its opposition to the third rescue of the bankrupt country in five years.
Inflation:
The inflation rate in Greece was recorded at -2.20 percent in July of 2015. It was
the 29th consecutive fall. Inflation Rate in Greece averaged 8.88 percent from
1960 until 2015, reaching an all time high of 33.70 percent in January of 1974
and a record low of -2.90 percent in November of 2013. Inflation Rate in Greece
is reported by the National Statistical Service of Greece.
In Greece, the most important categories in the consumer price index are: food
and non-alcoholic beverages (17 percent of total weight); transport (13 percent);
housing (12 percent) and hotels, coffee shops and restaurants (11 percent). The
index also includes: clothing and footwear (9 percent); health (7 percent);
furnishing and household equipment (7 percent); recreation and culture (5
percent); communication (5 percent). Education, alcoholic beverages, tobacco
and other goods and services account for the remaining 14 percent of total
weight. This page provides the latest reported value for - Greece Inflation Rate plus previous releases, historical high and low, short-term forecast and long-term
prediction, economic calendar, survey consensus and news. Content for - Greece
Inflation Rate - was last refreshed on Sunday, August 30, 2015.
Unemployment:
Unemployment Rate in Greece decreased to 24.99 percent in May from 25.58
percent in April of 2015. Youth Unemployment Rate in Greece decreased to 51.80
percent in May from 53.20 percent in April of 2015.
REFERENCES:
www.bankofgreece.gr
www.worldbank.org
www.imf.org
www.bis.org
www.ecb.europa.eu
www.tradingeconomics.org/greece
www.socialeurope.eu
www.quandl.com
www.wikipedia.org
APPENDIX-1
Government budget balance, GDP growth and debt-to-GDP ratio
Greek
national
account
1990
1995
2000
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015b
2016b
31.0d
37.0d
43.4d
39.0d
38.7
40.2
40.6
38.7
41.1
43.8
45.7
47.8
45.8
48.1
45.8
45.2d
46.2d
47.1d
44.4d
44.9
46.9
50.6
54.0
52.2
54.0
54.4
60.1
49.3
50.2
47.9
-14.2d
-9.1d
-3.7d
-5.5d
-6.1
-6.7
-9.9
-15.3
-11.1
-10.2
-8.7
-12.3
-3.5
-2.1
-2.2
14.9f
9.4g
4.2g
5.2h
7.4h
7.8h
9.7h
14.7
h
9.8
6.3
-0.6
2.2
0.4
-1.4
-2.3
Nominal
GDP growt
h (%)[169]
20.7
12.1
5.6
3.2
9.4
6.9
4.0
1.9
4.7
8.2
6.5
6.1
1.8
-0.7
3.6
Real GDP
growthj (%)
0.0
2.1
4.0
0.9
5.8
3.5
0.4
4.4
5.4
8.9
6.6
3.9
0.8
0.5
2.9
45.7
93.4
141.7
199.2
217.8
232.8
242.1
237.4
226.2
207.8
194.2
182.4
179.1
177.8
184.3
Public
revenued (%
of GDP)[165]
Public
expenditure
d
(% of GDP)
[166]
Budget
balanced (
% of GDP)[25]
[167]
Structural
balancee (
% of GDP)
[168]
[171][172]
Nominal
GDPk (billio
n )[169][175]
Debt-toGDP
ratio (%)[30]
68.3
93.1
99.6
106.9
103.4
103.1
109.3
126.8
146.0
171.4
156.9
175.0
177.1
180.2
173.4
6.5
0.6
11.1
11.8
3.4
0.4
6.2
17.5
19.2
25.3
14.5
18.1
2.1
3.1
6.8
[176]
- Overall
yearly ratio
change (%)