OECD Economic Surveys Greece

Following a deep and prolonged depression,during which real GDP fell by 26%, the economy is

projected to grow again in the course of 2016and 2017, but a full recovery will take time.

Competitiveness has improved markedly, butexports and investment remain weak. The

unemployment rate, at 25%, is still high despite a moderate decline since 2013. The depression has

pushed many people into poverty and incomeinequality has increased. Tax and benefit reforms

have materially improved the budget position, but the burden of adjustment has been uneven and

public debt is still very high. The banking sector has recently been recapitalised, but credit

creation remains weak due to the high burden of non-performing loans on banks’ balance sheets,

and reduced demand for loans
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