2024-09-03 08:46:18
“The government cannot accept the downgrading of the achievements of the citizens and the presentation of a miserable image that is often based on incorrect or incomplete economic data” states the Ministry of National Economy and Finance, which in its announcement develops through tables the ” 7 firsts and 7 truths about the Greek economy”.
“The government does not underestimate the difficulties that the global inflationary shock creates for household purchasing power from 2022 onwards. Nor does it overlook that wages and salaries are still below the European average. However, it cannot be accepted to discredit the very important achievements of our economy, much more to present an image of zeroing and leveling, which is far from reality” it is also emphasized.
xatzidakis oikonomia
The announcement in detail:
“Greece has achieved the highest – or at least one of the highest – speeds of progress in the entire EU, in a number of critical sectors, states the Ministry of National Economy and Finance in its announcement regarding the progress of the Greek economy over the last 5 years.
As he points out, “in the last five years, the Greek economy has made significant progress, achieving firsts in a number of key economic indicators that also reflect the noticeable improvement in the standard of living of citizens.
The government is not underestimating the difficulties that the global inflationary shock creates for household purchasing power from 2022 onwards. Nor does it overlook that wages and salaries are still below the European average.
However, it cannot be accepted to discredit the very important achievements of our economy, much less to present an image of zeroing and leveling, which is far from reality. It cannot accept that the achievements of the citizens are downgraded and a miserable picture is presented which is often based on incorrect or incomplete financial data.
The reality is that from 2019 onwards, a transformation of the Greek economy is taking place with a tangible dividend of development and mitigation of injustices for the benefit of all Greek women and all Greek men. Progress recognized by international organizations, foreign governments, media and analysts, who refer to Greece in a very positive way.
7 firsts and 7 truths about the Greek economy
Only a few economic indicators used by all the countries of the world in order to capture their development and prosperity, certify the truth of the statement. Greece in Europe of 27 holds 7 first places in the last five years, as a result of its high growth rate, which is one of the highest growth rates pan-European, as in the period 2019-2023 it has achieved:
- 1. The biggest reduction in the unemployment rate of any other EU country.
- 2. The lowest cumulative increase in consumer prices, i.e. the lowest cumulative inflation across Europe
- 3. The largest percentage increase in investment volume
- 4. The biggest reduction in the ratio of public debt to GDP
- 5. The largest percentage share increase in world exports of goods
- 6. The greatest increase in the level of competition, as defined and measured by the OECD
- 7. The largest reduction in the yield difference (spread) against the German ten-year bond
Truth 1: Over 500,000 citizens found work in the last 5 years, according to ERGANI data. Also, according to ELSTAT data, the increase in employment has led to a decrease in unemployment by 8 percentage points, from 18% in 2019 to below 10% today, which ranks us as a country in first place in terms of the fastest de-escalation of unemployment across Europe. And this reduction is more pronounced among women and young people, who saw their unemployment rate decrease by 10 and 16.5 points respectively. The reduction in the percentage of the long-term unemployed is also large, whose percentage (in the total number of unemployed) has decreased from 2019 to 2022 (latest Eurostat data available) by 15 percentage points. The improvement of the standard of living in Greece is also confirmed by the positive development of the main indicators of poverty and social exclusion. Specifically, and according to Eurostat data, the index measuring the percentage of the population at risk of poverty and social exclusion fell from 29% in 2019 to 26.1% in 2023, converging significantly towards the European average (21.4% ).
Truth 2: In the last five years the minimum and average wages in Greece have increased more than prices. Specifically, between 2019 and 2023 the Consumer Price Index (CPI) has cumulatively increased by 13.4% and the harmonized CPI by 13.1%, an increase significantly lower than the European average (20.3%). In the same period, based on data from the ERGANI information system, the average salary increased by 20.2%, while the minimum wage has increased from 2019 to date by 27.7%.
Truth 3: Wages and incomes in Greece are rising, and mostly faster than in Europe.
Net disposable income in Greece has increased for all types of households with working members. Specifically, again based on Eurostat data, from 2019 to 2023 annual net earnings in purchasing power units have increased between 12.3% and 15.7%, depending on the type/composition of the household. In terms of purchasing power, this salary in 2023 ranks 16th in the European Union of 27 for three of the four main reference categories, while in the fourth it ranks 19th. Particularly with regard to workers who are paid the minimum wage, Greece is in the middle of the distribution, since out of a total of 22 member states with a legislated minimum wage, in purchasing power units the country is in 12th place. Even food inflation, which is a more problematic issue than average inflation, has been on a downward trend in recent months. Coupled with continued wage and income growth, it leads us to expect that disposable income growth will increase at a faster rate for the foreseeable future. Consequently, the claim that the standard of living in Greece is second to last in the European Union is far from reality.
Truth 4: In Greece, a higher growth rate of individual consumption is observed than the European average. This can also be seen from Greece’s ranking in actual individual consumption in terms of purchasing power, where in 2023 our country is at 79% of the European average, above six other member states. And in this size, Greece shows a higher growth rate than the European average, as between 2019-2023 it showed a cumulative change of 23.4%, compared to 19.4% of the European average.
Truth 5: Real per capita income has increased in Greece to a degree significantly higher than the European average. Specifically, according to Eurostat data, between 2019 and 2023 the real GDP per capita in Greece has increased by 7.7%, a rate more than double the average of the European Union (3.3%) and almost three times that of the Eurozone (2.3 %). But also in terms of purchasing power, the GDP per capita in Greece is growing faster than the European average. In the last five years, the increase in Greece is 22.8% against 20.1% of the average of the European Union.
Truth 6: Greece is consistently in the first positions in the absorption of European funds.
Greece utilizes European resources to further strengthen development. It is typical that as far as the Recovery Fund is concerned, our country is in the 6th place in terms of absorption, in the entire EU. It will have absorbed 50% of the resources by October (total budget of 36 billion euros). Corresponding performances are recorded in the NSRF 2021-2027, where it is in 3rd place in the EU in terms of absorption.
Truth 7: Greek deposits are increasing and household debt is decreasing. Based on data from the Bank of Greece, citizens’ bank deposits in recent years have increased by 27.3 billion (a total of 50 billion euros for citizens and businesses). In addition, there has been a significant reduction in non-performing private debt of households and businesses to banks and funds, from 92 billion euros in 2019 to 69 billion euro at the end of 2023.
The progress of the Greek economy is recognized by all major international organizations. It is also recognized by the international markets that invest billions in our country, through our bonds and capital markets, the successful privatization program (including banks) and foreign direct investments, which in the last five years exceed 27 billion euros. And finally, it is also reflected in the recovery of the investment grade after thirteen years, a development with significant beneficial consequences for the country’s borrowing costs and our public finances. For example, just for the borrowing we do this year, the recovery of the investment grade creates savings of about 800 million euros over a decade, money that can strengthen health, education and the welfare state.