Greek Economy and Development Minister Dimitri Papadimitriou this week emphasized what he called an “unprecedented dynamic” exhibited by the Greek economy – after nearly nine years of crises – which is confirmed by an “intense interest” over direct foreign investments in the country, as he added.
In referring to an improving economic climate, the longtime US-based economics professor said the intertwined issue of competitiveness in the Greek economy is usually broached in two types of studies: quantitative and qualitative.
“The quantitative studies approach the figures directly, without being affected by the bleak reality of the crisis years. Unfortunately, qualitative studies usually take into account the economic climate of the past. As a result they err in their forecasts for the future. And this occurs because we’re truly at a crucial juncture for the Greek economy, whereby qualitative studies’ mistakes are quite possible, if not unavoidable.”
Nevertheless, Papadimitriou pointed to three studies by major institutions, which as he states, confirm the distinct improvement in Greece’s competitiveness.
According to a European Commission study on competitiveness, based on relevant rates of consumption in 37 EU member-states and affiliated non-EU countries, the Greek economy improved its competitiveness by 3.4 percent in 2016 compared to 2014. Based on relevant export, the figure is improved by 12.6 percent, and based on labor costs, by 5 percent.
A second study he pointed to was compiled by the Bank of Greece (BoG), covering 28 of Greece’s trade partners, which showed a drop in competitiveness by 0.7 percent compared to 2015 but an improvement of 4.4 percent compared to 2014, based on relevant consumer prices.
Finally, he said a study by the OECD, entitled “Economic Outlook, June
2017,” showed that the Greek economy’s competitiveness – based on relevant figures for consumption – enjoyed a steady improvement after 2014, with 2016 showing no change.
Finally, in his article, which was published in Thursday’s edition of “N”, Papadimitriou forecast that 2017 will witness an overall improvement in competitiveness, compared to 2014, that will reach 7.2 percent.
