Causes of the recent W-Shaped recession in Greece
We look into the available macroeconomic figures about the recession in Greece. After our Econometric Analysis, between 10 Eurozone countries the thesis compares the recent economic crisis in Ireland with the much larger and still on-going crisis in Greece, traces the Causes behind their differences and assesses each country’s future economic prospects. Greece reduced its fiscal deficits, yet, after its economy stabilized and began recovering in 2014, it suddenly adopted in 2015 a very backward looking confrontational strategy with its lenders, which brought a second recession. In contrast, Ireland signed its MoU with the Lenders and subsequently delivered quickly on the program requirements. Today in 2017, Greece, after having lost over 22% percent of its pre-crisis income, has not yet escaped its crisis, is still burdened by economic stagnation, an unsustainable public debt and unusually high tax rates that constrain growth. On the other hand, Ireland has managed to keep its Global comparative advantages and has the luxury to focus on its long-term growth strategy.