Walsh, J. (2014) “Is the Greek economy improving?“, The Guardian, 27 November.
The Greek government is keen to trumpet the country’s improved economic outlook, as the country exits recession for the first time in six years. But is any improvement being felt by people on the ground?
After a six year slump, Greece finally came out of recession earlier this month. But are there any signs of an improving situation for Greek families, individuals and businesses? That’s what we hoped to find out by asking for readers’ views on the current state of the Greek economy. We received hundreds of responses, with only 12% of respondents saying they had seen signs the economy was on the mend.The Guardian’s Greece correspondent, Helena Smith, is deeply sceptical about the heralded recovery having any real impact on the ground.“The ‘success story’ peddled by the government differs wildly to what life is really like on the ground – with plummeting living standards, unprecedented unemployment and the inability of most to keep up with bills, including the barrage of new taxes that can change with lightning speed on any given day,” she says.“Five years down the road the crisis, to great degree, has been ‘normalised’ but the disconnect is evident in the collateral damage caused by the massive devaluation Greece has been forced to undergo in return for emergency funding: suicides, homelessness, a middle class pauperised by austerity.
“And all eclipsed by a level of uncertainty, shared by all who live in a country whose debt load – the biggest impediment to real economic recovery – has actually grown since the crisis began.”
Meanwhile, the International Labour organisation (ILO) this week warned of “a prolonged social crisis” unless action is taken to stimulate the job market.
The accounts that we received suggest that the crisis is far from over. “I am lucky enough to be employed for the time being, but I see my salary shrinking from day to day and I cannot fulfill my family’s needs,” says Yannis Petr, from Crete, speaking for many who responded. “If you are looking for signs of recovery you can find them in the tourist sector due to the increased number of visitors we had this year, but at the same time more and more are underpaid, working exhaustive hours without social insurance.”
“Although economic indicators tend to present that Greece’s economy is improving, there is no strong hypothesis that changes are based on macroeconomic aspects of the economy,” says John Pavlovic, 38, a scientic advisor for a Greek MP. “We are experiencing the outcome of wage and pension cuts, while the citizen is taxed way above his ability to contribute.”
Below are a selection of views from across Greek society. Please add your own below the line.
Relevant posts:
- Papadimitriou, D., Nikiforos, M. and Zezza, G. (2014) “Prospects and Policies for the Greek Economy“, Levy Economics Institute Strategic Analysis, February 2014.
- Polychroniou, C. J. (2014) “The Myth of the Greek Economy ‘Success Story“, Levy Economics Institute of Bard College, Policy Note, February 2014.
- Alcidi, C. & Gros, D. (2012) “Why is the Greek economy collapsing? A simple tale of high multipliers and low exports“, Centre for European Policy Studies, 21 December.