1.5% economic growth is anticipated for Greece in 2023
The GDP of Greek economy has stalled for more than ten years. After it lost a significant portion of it, proving that there hasn’t really been any improvement or recovery.
According to a research released by the Greek central bank on Wednesday. The country’s economy will expand by 1.5% annually in 2023. Down from 6.2% this year.
The required structural reforms in the institutions and the economic environment have not been carried out by the Greek governments since the start of the crisis to the present. The state’s interference in the market to advance numerous and disparate interest groups was the root of the entire issue, which led to the economy’s declining productivity and competitiveness.
Instead of reducing administrative costs, closing pointless bureaucratic services, closing loss-making state-owned enterprises, cutting the massive bureaucracy that justifies the existence of so many civil servants hired by each government to buy their votes, improving the quality and efficiency of the legal system, opening up the closed markets for goods and services, and cutting huge amounts of unproductive and unnecessary government budget expenditures, they simply preferred to implement
Because their own central banks had a substantial exposure to Greek assets and because they feared the political and Eurozone repercussions of a Greek collapse, the European Union continued to lend to Greek governments even if they did not implement the changes envisioned under the programs.
The events that have taken place in Greece over the past 40 years, starting in 1981 (the year the party of deficits, poor management, and institutional corruption began), may serve as the ideal illustration and application of the theory of public choice.
More about the Greek Economy
It is best to read the writings of economists Pelagidis and Mitsopoulos in order to comprehend what transpired in Greece. While India’s per capita GDP is only about $7000, the country’s overall GDP is $8 trillion in PPP terms. Greece, in contrast, has a $270 billion overall GDP and a $27,000 per capita GDP. We can all probably agree that India is significantly more powerful than Greece. In addition, India’s GDP growth rate is over 8% while Greece’s is barely 2%. India is therefore a more desirable market for investment than Greece.
comparing two countries economically cannot be done by focusing on just one factor.In light of this, let’s contrast Turkey with Greece:
Total GDP PPP: Turkey has 1.5 trillion GDP, far above Greece’s 270 billion GDP.
Future potential: Greece grows by about 2% annually, compared to Turkey’s growth rate of about 5%. Turkish citizens are also younger than Greek citizens. Turkey therefore excels in this area as well.
Greece outperforms Turkey in terms of GDP per capita ($27000 vs. $22000).
