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19 Mar 2014

What makes Greece special?

Daniel Gros

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The news from Greece these days has been dominated by the announcement that the government achieved a primary budget surplus in 2013. While acknowledging that this is indeed a highly laudable accomplishment, Daniel Gros points out in a new commentary that a more important news item, which has received much less attention, is the fact that Greece exported less in 2013 than in 2012. After considering various textbook causes for this poor export performance, he concludes that the only explanation must be that the Greek economy has remained so distorted that it has not responded to changing price signals.

Daniel Gros is Director of CEPS. A shorter version of this commentary was originally published by Project Syndicate on 6 March 2014 (www.project-syndicate.org/commentary/daniel-gros-asks-why-the-greek-economy-remains-mired-in-recession#Vu2kVfdkAx79tT5p.99)).