The report just published by the Pissarides Commission shows that, during the 2010-19 period, which roughly corresponds to the protracted economic crisis that hit Greece, the country underinvested by €130 billion and saved €125 billion less that it would have if its investments and savings were comparable to the eurozone average.
The Commission, a group of academics and business executives headed by the Cypriot-British Nobel Prize-winning economist Sir Christopher Pissarides, was set up in January to devise a growth plan for the country.
The report describes a web of interconnected weaknesses – underinvestment, low savings, low export orientation and low productivity – that were certainly exacerbated by the crisis, but existed beforehand. It calls for a radical reorientation of the economy in which growth in investment, production and savings are given priority over consumption.
Fixed investments, as a percentage of gross domestic product, significantly lagged throughout the 2010-19 period compared to the eurozone average; this lag was 7% of GDP each year. Cumulatively, the underinvestment was €130 billion.
This amount is higher than previous estimates; the Hellenic Federation of Enterprises (SEV), for example, estimated last decade’s investment gap at 100 billion.
“In 2019, Greece is the EU’s laggard in fixed investments – just 11.4% of GDP, compared to an EU average of 21.3%,” the Pissarides Commission report says.
On savings, the report notes that they declined throughout the first three years of the crisis and, since 2013, have turned negative, as Greek households were obliged to use their savings to cover basic consumption and debt payment needs. But even before the crisis, productive investment was growing at consistently low rates: Investment from non-financial firms averaged 7.5% of GDP, compared to a 12.4% EU average.
Greece is also the fifth lowest exporter in the EU, as a percentage of GDP, and bottom among the smaller countries.
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
