Greek Economy Rebounds after Years of Crisis, But Lingering Pain Remains

Greece's economy is booming a decade after debt crisis nearly broke the eurozone and forced harsh austerity measures. It's now one of Europe's fastest growing economies.
Tourism has rebounded, fueling construction and new jobs. Major companies are investing billions.
Banks are lending again after years of crisis. Credit ratings upgrades pave way for big investors.
But many Greeks still feel the pain of austerity cuts to incomes and pensions during the crisis. High inflation now threatens living standards.
Government has lifted minimum wage, plans public sector raises after years of cuts. economy growing twice eurozone average but debt remains very high.

nytimes.com

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8/19/2023

Report praises new economic model for Greece

### Summary In its latest report on Greece, HSBC highlights the country's major reform story, emphasizing the shift towards exports and investments for a more sustainable economy. ### Facts - 💼 Greece's economic model has undergone significant changes, with a greater focus on exports and investments. - 📈 The country's economic prospects are now more promising and sustainable compared to the past. - 🇪🇺 The report discusses Greece's debt crisis, which resulted from loose fiscal policies, leading to an explosion in domestic demand and a subsequent increase in borrowing costs and debt. - 💵 As a member of the eurozone, Greece was unable to depreciate its currency, so it had to achieve competitiveness by decreasing wages. - 📉 Initially, keeping wages low contributed to deflationary trends and a decline in the economy, leading to high unemployment rates. - 📈 However, Greece has experienced a boost in exports, narrowing the balance of payments gap and achieving historical highs in investment and foreign direct investment (FDI). - 💪 Faster growth, driven by exports and investments, will contribute to a quicker reduction of the debt, which benefits from a long maturity and low interest rates due to a deal with creditors. - 💡 The report emphasizes that Greece's economic model is no longer solely dependent on fiscal policy.

8/19/2023

Report praises new economic model for Greece

Greece's economic model has undergone a significant reform, with increased emphasis on exports and investments, leading to better and more sustainable prospects for the economy, according to HSBC's latest report.

8/22/2023

Record tourism revenue in year’s first half

Tourism revenue in Greece is on track to exceed €20 billion this year, surpassing the record set in 2019, with first-half revenue reaching €6.174 billion, a 14.1% increase from the same period in 2019.

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Posted 9/25/2023, 4:01:25 AM

Greek Economy Rebounds after Years of Crisis, But Lingering Pain Remains

Greece's economy is booming a decade after debt crisis nearly broke the eurozone and forced harsh austerity measures. It's now one of Europe's fastest growing economies.
Tourism has rebounded, fueling construction and new jobs. Major companies are investing billions.
Banks are lending again after years of crisis. Credit ratings upgrades pave way for big investors.
But many Greeks still feel the pain of austerity cuts to incomes and pensions during the crisis. High inflation now threatens living standards.
Government has lifted minimum wage, plans public sector raises after years of cuts. economy growing twice eurozone average but debt remains very high.

nytimes.com

Relevant topic timeline:

8/19/2023

Report praises new economic model for Greece

8/19/2023

Report praises new economic model for Greece

8/22/2023

Record tourism revenue in year’s first half