As Greece works out the details of a deal with the EU for billions of euros in bailout funds and severe austerity measures, the nation continues to feel the effects of nearly a decade of financial turmoil. Here’s how Greece’s economy has fared.
1. Change in Greek GDP
Greece’s gross domestic product (total economic output) has been stunted, with the economy shrinking by more than 25 percent since 2007. While GDP rose slightly in 2014, quarters one and two of 2015 have shown negative growth, indicating a recession.
2. Greek unemployment
Greek unemployment rates have tripled since 2006, especially for younger people. The unemployment rate for working-age Greeks under the age of 25 has at times topped 50 percent, and currently rests just below that level. One quarter of the total labor force is unemployed.
3. Greek public debt
Despite the harsh austerity measures, Greek public debt has not fallen since the start of the crisis, with the exception of 2012 when it was restructured. Greece was on track to hit a budget surplus target that the EU institutions had requested, but recent events have made it nearly impossible for the country to reach its targets, meaning debt has stagnated. Greece’s debt-to-GDP ratio currently rests at 175 percent, far higher than the EU average of 87 percent.
4. Greek bank deposits
Bank deposits have fallen since 2010 as Greeks worried about the country’s potential removal from the euro, reaching a 10-year low in 2015. Since July 2014, deposits have fallen sharply after having previously levelled off. Since the start of the first recession in 2007, Greek bank deposits have dropped 24 percent.
5. Greek inflation
Greek inflation rates have fluctuated since the beginning of the recession, and have remained negative since early 2013. Other EU countries experienced fluctuating inflation rates during the early days of the crisis, but major economic powers such as Germany and the U.K. have seen inflation rates at close to or above zero.
6. Greek vs German bond yields
German bond yields remained steady at around 50 basis points in June and July 2015, while Greek bond yields have, understandably, been affected by the financial uncertainty. Greek bond yields have seen a slight increase since the agreement with the eurozone was announced.
7. Greek vs German bond yields over time
Greek 10-year bond yields are high compared to more stable German bonds, but there has been a steep decline from 2012 levels.