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Uncertainty faced by households and firms affects economic activity. The rise in uncertainty since the beginning of the sovereign debt crisis in Greece could be one factor that has contributed to the steep and long-lasting recession. This paper presents a brief empirical analysis quantifying this phenomenon and compares it with developments in Ireland and Portugal.
Poverty and income inequality have worsened since the onset of the crisis. While the design of fiscal
measures has mitigated the burden sharing of fiscal adjustment, as the recession has deepened
unemployment has risen, earnings have declined and social tensions have increased.
Restoring growth, making it sustainable and dealing with social costs are essential to the success of the adjustment programme in Greece. To this end, accelerating and broadening the structural reform programme is key.
Greece has made impressive headway in consolidating its public finances and undertaking key structural reforms to boost productivity and enhance competitiveness.
The government and citizens of Greece continue their arduous efforts to put the economy back on a sustainable path, despite seemingly insurmountable challenges. The implementation of reforms is key to getting through this tough period and ultimately equipping people with the tools they will need to share the benefits of growth, said OECD Secretary-General.
Country Notes from OECD Economic Policy Reforms: Going for growth 2011 presenting OECD recommendations for structural reform priorities for individual countries.
Greece is in deep crisis after years of fiscal laxity and weak structural reforms. To return to sustainable growth, the fiscal consolidation and product and labour market reforms underway should continue, be closely monitored, with the burden of the adjustment fairly shared, according to the OECD Secretary-General.
Greece is in deep crisis after years of fiscal laxity and weak structural reforms. To return to sustainable growth, the fiscal consolidation and product and labour market reforms underway should continue, be closely monitored and strictly implemented.
OECD' Secretary-General welcomes the fiscal consolidation plan and loan package agreed by the Greek government, its Euro area partners and the International Monetary Fund.
In this interview for the German radio Deutschlandfunk, Angel Gurría warns that delays are threatening the stability of the international financial system and could spread the crisis to other countries.