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The Economy of Greece

Austerity and Its Human Cost

Greece cut spending and raised taxes dramatically, and the economy shrank by about a quarter, with unemployment above 25 per cent.

The medicine was harsh.

Contraction

GDP fell by roughly a quarter between 2008 and 2016.

Jobs

Unemployment peaked above 27 per cent, and youth unemployment exceeded 50 per cent.

Emigration

Many young, educated Greeks left the country.

Debate

Economists argue that the pace and size of the cuts were too severe, while others stress that reforms were unavoidable.

A brain drain

A young engineer moves to Germany after failing to find work at home.

Assuming cuts were painless

They caused deep hardship.

Key takeaways
  • GDP fell by about a quarter.
  • Unemployment exceeded 25%.
  • Many emigrated.
  • The austerity debate continues.
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