IMF: Greece is One of the Best Performing Countries in the Eurozone
Greece has entered the economic growth period and is one of the “best performing countries in the Eurozone”. This rather surprising statement comes from the newly released Greek economic report of the International Monetary Fund (IMF). Is the nightmare of the Greek economic collapse over
The International Monetary Fund‘s (IMF) new Greek economic report, saying that Greece is one of the best performing countries in the euro zone, a senior IMF official said that Greece has many positive developments worth mentioning.
Greece regained its growth in 2013, but the growth at the beginning was erratic. However, last year’s growth of 2% was the first time in more than a decade.
The IMF predicts that Greece’s growth will be better this year; Peter Dohlman, head of the IMF‘s Greek delegation, said that this is enough to make Greece a “pre-event in the euro zone.”
This is of course progress, and the changes in economic performance are indeed amazing, but Greece has been able to rank in the previous paragraph, and partly reflected the slowdown in growth that hit the entire Eurozone last year. Don’t forget the Greek economy’s previous heavy losses. Its current economic size is still about 24% smaller than before the crisis.
Having said that, the IMF pointed out that the Greek economy is still quite fragile and needs further reforms, and the unemployment rate is still high and scary.
In addition, Greece is also the economy that receives the most aid loans, with total borrowings exceeding 250 billion euros, partly from the IMF, but mostly from the euro zone.
These loans are accompanied by conditions. Greece must reduce the need for long-lasting government borrowing and reform the economy to support growth. The changes that have been promoted now include changing labor practices, increasing commercial competition, and privatization. However, reducing government borrowing demand and economic reforms have all encountered resistance in the country and led to a political crisis. But both the IMF and the European Union said that Greece has made progress.
The unemployment rate has dropped significantly, and the youth unemployment rate is no exception, but it is still very high: the adult unemployment rate is 18.5%, and the youth unemployment rate is close to 40%. The IMF pointed out that the reform has not yet been completed and the Greek economy remains fragile.
The banking industry is particularly worrying. The level of bad debts of Greek banks is still high, Dullman pointed out that this problem makes banks feel like “bad”; private sector credit continues to decline, which also reflects this. He also said that Greece needs more labor market reforms, allowing employees to respond more to changes in external conditions, and competition reforms continue to lag behind.
This week’s Eurozone finance ministers meeting agreed that Greece has to work harder. They discussed whether to implement partial debt relief measures that have been agreed in principle but have to consider the progress of the Greek reform.
Finally, they decided to wait until Greece completes more reforms and then issue bailout funds, but EU Executive Committee Pierre Moscovici said he is quite confident that debt relief measures worth nearly 1 billion euros will be held in April at the latest. A resolution is made at the next meeting.
IMF: Greece is One of the Best Performing Countries in the Eurozone - /10
Greece has entered the economic growth period and is one of the “best performing countries in the Eurozone”.