How to turn a recession into a depression

Posted: 22 February 2017 in Uncategorized
Tags: , , , , ,

eurozone-greece-poverty

Greece is a perfect example of how to turn a bad economic situation into something even worse. As Reuters reports,

Rescue funds from the European Union and International Monetary Fund saved Greece from bankruptcy, but the austerity and reform policies the lenders attached as conditions have helped to turn recession into a depression.

As a result, the poverty rate in Greece almost doubled (between 2008 and 2015), rising from 11.2 percent to 22.2 percent.

graph_dl

And average (per adult) GDP has fallen below what it was three decades ago.

Meanwhile, IMF and European institutions are demanding further austerity measures (equivalent to 2 percent of gross domestic product) before agreeing on a new deal to aid Greece.

Comments
  1. Tomboktu says:

    Odd. Iceland, not an EU member state, is included but Ireland, which is, is absent. Is it a typo on the graph or was the wrong country’s data included?

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