Greece: Fiscal consolidation should continue

Economic activity has already weakened due to slowing domestic demand. Growth is expected to be subdued until mid-2009 in the context of a sluggish external environment, but to firm gradually thereafter. Inflation is set to decline, but the persistent differential with the euro area is likely to remain.
Despite weaker economic conditions, fiscal consolidation should continue, relying on better control of public spending. A reform of the pension system and greater efficiency in healthcare and public administration are essential. Recent measures to broaden the tax base are welcome. The strengthening of competition in network industries and a reduction in labour market rigidities would help to reduce inflation and improve long-term growth prospects.


Economic data

GDP growth: +0.6% Q1 2019 year-on-year
Consumer price inflation: 2.3% May 2019 annual
Trade: +0.4% exp, -1.2% imp, Q1 2019
Unemployment: 5.2% July 2019
Last update: 9 September 2019

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