Economic crises are always hard on the societies that are affected by them. They strongly impact unemployment, companies that do not make a lot of profit, and the people who dream of a better life. However, economic theory also states that at the end of a crisis the affected region can bounce back to where it was before the crisis started.
That is, of course, unless the region in question is Greece…
The Future of Greece
This is what awaits Greece: despite many years of work ahead and an unseen level of unemployment projected for 2025, the country will still have a lower GDP in two decades versus before the crisis.
Greece’s problem is not just related to cutting costs, but also how this will be implemented by the authorities. The combination of how structural reform is set up in tandem with cost restructuring programs makes people speak of a lost Greek generation.
To put Greece’s misery in perspective we added the chart below from the Great Depression in the US. It is clear that America’s GDP did not go down as strongly, but also that it came back to where it left of in 10 years.
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