IMF Staff Country Reports

Greece: Selected Issues

Publication Date:

June 11, 2003

Electronic Access:

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Summary:

This Selected Issues paper analyzes the major factors that may have contributed to the marked widening of the external current account imbalance in Greece since the mid-1990s, with the deficit reaching one of the highest levels (in relation to GDP) among advanced economies. The factors reviewed include developments in relative cost and other competitiveness indicators, business cycle asynchronization, and idiosyncratic supply shocks and immigration. Potential implications of euro area entry are discussed, in particular the impact of declining interest rates in the context of monetary union.

Series:

Country Report No. 2003/157

Subject:

Balance of payments Current account Current account deficits Personal income tax Revenue administration Social security contributions Taxes