Macroeconomic stability and a return are the key to setting Greece back on the path to economic recovery, according to a new report by the OECD. Failure to achieve this, in part through a successful completion of talks with its creditor, is the only way to combat growing poverty in Greek society. “Boosting economic growth, investments to create jobs, improving the stability of public finances and providing an effective social security system,” are crucial to help Greece recover from the profound social costs of the economic crisis, writes the Organization for Economic Cooperation and Development.
The survey sees hope for a strengthening economic recovery in 2017 and highlights the importance of the ongoing negotiations concerning public debt sustainability to support the recovering economy. According to initial estimates, the refugee crisis has knocked Greek GDP back 0.4 percent in 2015.
OECD Secretary-General Angel Gurría, following his visit yesterday in Greece, projected zero growth for the Greek economy this year and a 1.9 to 2 percent GDP increase in 2017. “The refugee crisis creates significant problems for the Greek economy and growth. Greece needs to receive substantial support to deal with this new challenge. No single country can address this challenge on its own,” he also added.
