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Fiscal consolidation
Primary budget deficit decreased from €24.1 bn in 2009 to €10.7 bn in 2010 to €4.7 bn in 2011
2
Source: ELSTAT/Eurostat, April 2012
Cyclically adjusted Primary Balance* (% GDP)
3
Source: IMF, Fiscal Monitor, April 2012
*i.e. correcting for the effect of the business cycle (structural budget deficit)
The fastest fiscal consolidation*Primary Balance Improvement (percentage points of GDP)
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Country From min To max Total Years AvgGreece 2009 -10.4 2011 -2.2 8.2 2 4.10
Denmark 1982 -2.6 1986 11.6 14.2 4 3.55Latvia 2009 -8.2 2011 -2.3 5.9 2 2.95
Portugal 2009 -7.3 2011 -1.6 5.7 2 2.85Ireland 1986 -1.3 1989 5.1 6.4 3 2.13
Germany 1995 -6.0 2000 4.3 10.3 5 2.06Netherlan
ds 1995 -3.6 2000 5.6 9.2 5 1.84Sweden 1993 -5.5 2000 7.1 12.6 7 1.80Austria 1995 -1.8 1997 1.8 3.6 2 1.80
UK 1993 -4.9 2000 6.3 11.2 7 1.60Finland 1992 -2.9 2000 9.6 12.5 8 1.56Belgium 1981 -7.4 1990 4.9 12.3 9 1.37
Italy 1987 -3.6 1993 2.6 6.2 6 1.03Spain 1995 -2.1 2001 2.5 4.6 6 0.77
US 1992 -0.9 2000 5.1 6.0 8 0.75France 1993 -3.2 2000 1.4 4.6 7 0.66Japan 1981 -0.7 1991 5.3 6.0 10 0.60
Source: AMECO
* Fiscal consolidation episodes as defined in OECD Economic Outlook 81, May 2007
Current Account Deficit declining
Current Account Deficit fell from 14.9% GDP in 2008 to 9.8% GDP in 2011
Current Account Deficit (excl. Oil and Gen. Govnt Net Interest) in 2011 was around 0% GDP, down from 6% GDP in 2008
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Source: Bank of Greece
This demonstrates the burden of
the debt servicing cost
% GDP
Competitiveness recovering
Within two years, 2010-11, Greece managed to regain over 50% of competitiveness lost during 2000-09
From 2009 to 2011, the Real Effective Exchange Rate (vis-à-vis its 26 EU trade partners), based on Unit Labor Cost, fell from 114.9 to 107.5 index points
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Recovery
Competitiveness Recovery (2010-11)
Source: European Commission
The 2nd Fastest Changing Economy
According to the Euro Plus Monitor, Greece ranks No. 2 in terms of the degree of adjustment in its economy during 2009-2011
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Source: The 2011 Euro Plus Monitor: progress amid the turmoil, The Lisbon Council/Berenberg Bank, November 2011
Fastest adjusting Eurozone economies (Adjustment Progress Indicator)