The deeper issues
The positive growth figures that Greece has been posting over the past few months are largely due to a successful year in tourism and all signs point to another excellent year for the sector in 2015. Given the size of tourism’s contribution to the Greek economy, we have a duty to protect this sector and ensure that political developments on the domestic front are not allowed to upset this successful trajectory. One worrying thing that we need to consider, however, is that production remains in the doldrums and exports are still in a protracted slump. It is a simple truth that no country can expect to rebound and get back on the path of growth unless it reduces its trade deficit. This was one of the chief goals set out in Greece’s loan agreement with its foreign creditors, but unfortunately it has not been achieved. We need to examine why the country has failed on this front and face the deeper issues that are keeping Greece’s production potential stuck in a quagmire.