Overview
This lecture analyzes official economic data on Greece, comparing recent SYRIZA and New Democracy governments, and benchmarks Greece against EU averages and the 10 poorest EU countries to reveal trends in wages, unemployment, housing, poverty, inflation, and income distribution.
Methodology & Data Sources
- All data presented is from Eurostat or ELSTAT, processed using international economic theory standards.
- Methodology is publicly available for verification.
Comparative Analysis Approach
- Three-way comparisons: (1) SYRIZA vs. New Democracy, (2) Greece vs. EU average, (3) Greece vs. 10 poorest EU countries.
- The most meaningful comparison is with the 10 poorest countries, as they are Greece’s direct economic competition.
Labor Market & Wages
- Greece is trending towards last place in the EU for key economic indicators like purchasing power, real income, and competitiveness.
- Unemployment in Greece followed a downward trend regardless of government; reduction is due to low-wage, low-skill jobs, not quality growth.
- 295,000 fewer employed people since 2009 due to brain drain and population decline.
- Real hourly wages in Greece stagnate at 9–10 euros, unlike strong increases in other poor EU countries with real growth and investment.
Housing Crisis
- Greek property prices increased more than the EU average since 2015, but not as much as in the poorest EU states.
- Housing unaffordability in Greece is driven by stagnant incomes, not just rising prices.
- 90% of low-income Greek households struggle with housing costs, vs. under 30% in the poorest EU nations.
- Housing poverty among middle/higher incomes is stable at ~15% in Greece, but <4% elsewhere in the EU.
Health, Crime & Poverty
- Unmet medical need fell during SYRIZA but rose to 12% by 2024, far above the EU average.
- Crime rates in Greece have increased since 2016, unlike declines in the EU and poorest EU countries.
- Material and social deprivation rates in Greece are higher and now increasing, even as the 10 poorest EU countries experience real convergence and poverty reduction.
Inflation Trends
- Rent inflation in Greece remains uncontrolled, unlike other EU countries where it has subsided.
- Food inflation was lower in Greece but stubborn, partly due to already high prices and failed policies like the household basket.
- Energy prices in Greece rose faster and for longer due to cartel behavior and only dropped after government intervention.
Income Distribution & Government Impact
- Steep income ladder: top 10% in Greece need ≥€3,104/month, top 1% ≥€6,500/month; these are low by EU standards.
- Under New Democracy, real income gains were concentrated in the top 20%, with the poorest losing ground due to inflation.
- SYRIZA period saw larger real income gains for the poorest and middle deciles.
- New Democracy had ~€8 billion/year more in government resources than SYRIZA but did not use these funds to support lower incomes or key investments.
Key Terms & Definitions
- Purchasing Power — The value of money measured by the amount of goods it can buy.
- Deciles — Ten equal groups dividing a population based on income levels.
- Material and Social Deprivation — Measured poverty, lacking basic goods/services and social participation.
- Real Wage — Wage adjusted for inflation, reflecting actual purchasing power.
- Unmet Medical Need — Percentage of people needing but not receiving medical care.
Action Items / Next Steps
- Review methodology and full data at greekonomics.gr.
- Reflect on how these data trends affect personal and family prospects.
- Share and discuss these findings to promote informed public debate.
- For further analysis, examine the video description for methodology details.