With weak domestic demand and a relatively low export share in the economy there is much potential to raise exports. Despite a recent pick-up Greek export performance deteriorated in the last decade particularly in the service sector and by much more than in the Euro area on average
This paper analyses the effects of the Greek crisis on inequality and poverty in 2009-2014 using the micro-simulation model EUROMOD.
The Greek economy is turning around lately, but it remains in a deep depression. GDP has fallen by more than a quarter between 2007 and 2015, unemployment remains extremely high at 25 percent and anchored poverty – which measures poverty relative to its pre-crisis income level – has nearly tripled between 2007 and 2014, reaching a third of the population.
Boosting investment in infrastructure and logistics, further liberalising the network industries, improving investment in human and knowledge-based capital to allow upgrading in the global value chains will be essential to enhance export performance.
It is very important to put this study in context. During the past six years, Greece has gone through an unprecedented and very painful contraction. It is hard to think of any other OECD country that has experienced such economic hardship in recent times.
Greek Prime Minister Alexis Tsipras will meet OECD experts led by Secretary-General Angel Gurría in Paris on Thursday 12 March to discuss Greece’s reforms.
Mr. Angel Gurría, Secretary-General of the OECD, was in Athens on 10-11 February 2015 on an official visit to Greece.
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This country note from Going for Growth 2015 for Greece identifies and assesses progress made on key reforms to boost long-term growth, improve competitiveness and productivity and create jobs.
Meeting Greece’s Minister of Development and Competitiveness Mr. Kostas Skrekas today, OECD Secretary General Angel Gurría said the Greek government’s reform programme was already showing positive results.
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.