Greece: 2009 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Greece
IMF Staff Country Reports, August 6, 2009
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- Greece: 2009 Article IV Consultation: Staff Report; Staff Supplement; Public Information Notice on the Executive Board Discussion; and Statement by the Executive Director for Greece
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Bibliographic details
- Published: August 6, 2009
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781451816327.002
Summary
- Despite initial resilience partly explained by high wage growth and accelerated government spending in Greece, growth slowed substantially in early 2009.
- The main driving forces of the slowdown were lower investment and exports, destocking, and a decline in private consumption.
- Executive Directors welcomed the extended period of strong growth through 2008, which had significantly narrowed the gap in real per-capita income with the EU-15.
- Directors emphasized the need to implement a comprehensive plan for fiscal consolidation and structural reform.
Key findings
- Growth performance:
- Growth slowed substantially in early 2009.
- Strong growth through 2008 had significantly narrowed the gap in real per-capita income with the EU-15.
- Drivers of the 2009 slowdown:
- Lower investment.
- Lower exports.
- Destocking.
- Decline in private consumption.
- Structural and fiscal concerns:
- Need for a comprehensive plan for fiscal consolidation.
- Need for structural reform.
Policy recommendations and emphasis
- Implement a comprehensive plan for fiscal consolidation.
- Undertake structural reform to address underlying vulnerabilities highlighted by the slowdown.