When 2008 Global financial crisis brought Greece to its knees , it took time for the country to build a strong reliable foundation to its economy.
So much so that in 2020 Athens Stick exchange was named the best performing stock market in the world at local currency terms which was a return from collapsing stock market in the financial crisis. When the crisis hit in 2008, the flow of cheap funding dried up. Greece being forced to deal its perineal balance deficits by cutting down the spending and increasing its taxes. Public sectors were able to coerce successive governments to turn the balance towards increasing taxes than cutting public spending which was unfortunate for the private sector. This in turn led to hug taxation, and as a result led to collapse in GDP and increase in bankruptcy to record unemployment.
GDP fell by 26% between 2007 and 2014, unemployment hit a high of 27.8% in September 2013 leaving 500,000 Greek professionals emigrating. Banks lost to government bonds and a staggering increase in loans of 48%. Also resulting in death blow to biparty politics which was a norm followed by military dictatorship at that time. Suriya party’s assurances to go against Brussels diktat was the radical shift which was seen. The threat of Greek banking system to leave the Eurozone with massive amounts by domestic holders was met. European central was forced to end its support to Greek banks. Syriza government tried to stabilise the situation, with a mix of pro public sector , anti establishment policies were at best and theoretical constructs with limited applications or even worse a façade to painful remedies.
2019 , government lost a big chunk of its electoral support both in local and foreign markets making way to a Democratic Party and its liberal leader which turned the country in new direction. Laws were passed but its evident that positive stock market performance was in anticipation of economic or policy improvements and not as a result of given actions. Markets were still shut but there was an increased demand in real estate sector.
The key to Greece’s growth is country ‘s government and its citizens to break the past and follow new best practices in managing the country and its economy. Having fragile geopolitical situation the country still seems to see positive effects. Privatisation programmes led to gather momentum , Hellinkion project of infrastructure buildings , permits to gold mines released many findings of billions of euros. The sale of Athens airport , Hellenic petroleum and DEPA increased investment in building infrastructure. Greece made right moves to increase foreign direct investment and reduce unemployment.
The economy is already benefiting and recovery will continue to strengthen with the foreign’s direct investment flow from small to big corporations.