Is there a way out of the crisis? Macroeconomic challenges for Greece after the Covid-19 pandemic

ABSTRACT

In the past decade, Hellenic economic adjustment managed to restore macroeconomic balances and growth rates although to the detriment of debt sustainability and citizens’ welfare. Covid-19 hit in 2020 the growth drivers of the Greek economy leading, once again, to rise in unemployment and to depression of economic activity. The article presents the macroeconomic priorities for the Greek economy after Covid-19 pandemic. The analysis considers four issue areas that are closely linked with growth namely primary fiscal balance, debt sustainability, external competitiveness and unemployment-poverty. It is argued that under certain conditions positive evolution of the four variables can keep Greek economy and Greek productive networks on track, limiting negative repercussions for the Greek society.

KEYWORDS:

• Greek economy
• economic growth
• structural reforms
• covid-19 pandemic