What is your assessment of the state of the Greek economy Wh

What is your assessment of the state of the Greek economy? What steps have been taken to mitigate the damage and fix it? Will they work? What else should be done?

Solution

Following nearly 10 years of economic recession, the future of the Greek economy has finally started to brighten up. The Greek people, however, have stopped dreaming about their own future.Greece is entering a crossroads. On the one hand, economic growth has returned and is set to continue, while the country is due to end its bailout program in August 2018. On the other hand, people do not feel their prospects will improve in the short-term and a general election could emerge relatively soon, potentially sparking further turmoil.Economy - overview: Greece has a capitalist economy with a public sector accounting for about 40% of GDP and with per capita GDPabout two-thirds that of the leading euro-zone economies. Tourism provides 18% of GDP.The truth is that there are no easy answers for Greece. It’s true that it would probably be in better shape today if it had defaulted on all its debt and left the euro back in, say, 2009. There would have been even more immediate pain — Greece imports a lot of its food and all of its oil — but it would have made Aegean vacations so cheap that everyone else wouldn’t have been able to afford not to take them, and the country’s exports would have become so much more competitive overnight that it would have gotten them back to growth much, much quicker than they are today.