Greece’s economy has stunned observers with its unexpected rebound, according to a recent article published by the German newspaper ZEIT.
Titled "The Economic Situation of Greece: What No One Expected," the piece highlights the nation’s rapid recovery from a debt crisis that once made headlines across the world.
Describing Greece’s fiscal struggles as “legendary,” the article underscores how dire the situation had been just a decade ago. "For years, being the Minister of Finance in Greece seemed to be the worst government position in all of Europe," the article notes. Ministers grappled with billions in debt while relying on international bailouts to maintain essential services like hospitals and schools. Strikes by public employees, demanding higher wages, were routine, as was the pressure from economically frugal northern European nations like Germany.
Now, however, the narrative has shifted. Greece’s economy is growing faster than Germany’s, with a projected growth rate exceeding 2% for 2024. Prime Minister Kyriakos Mitsotakis recently announced plans for an early repayment of €5 billion in public debt by early 2025, further signaling the country’s financial resurgence. "Greece seems to have transformed from Europe’s problem child into a model student within a decade," ZEIT reports.
While the improved economic outlook has bolstered investor confidence, particularly in the construction sector, the article highlights the uneven distribution of these gains. Rising rents, compounded by Eurozone inflation, have left many Greek citizens struggling, a reality that culminated in a nationwide general strike that paralyzed the country.
Despite these challenges, Greece’s fiscal turnaround is remarkable. The EU anticipates a budget surplus of 3% of GDP for Greece by the end of 2024. Even with debt repayments, Greece is expected to maintain a structural surplus into 2025—a stark contrast to the deficits that once defined its economy.
(Source: Amna)