Wealth worth one year’s GDP has been lost

Kathimerini English - - Focus -

The wealth of Greeks shrank by 167 bil­lion euros dur­ing the years of the fi­nan­cial cri­sis – i.e. al­most one year’s gross do­mes­tic prod­uct – ac­cord­ing to a sur­vey by Credit Suisse in­cluded in the weekly bulletin of the Hel­lenic Fed­er­a­tion of En­ter­prises (SEV).

The Swiss bank es­ti­mates the net wealth of Greeks – that is with their loans de­ducted – at 856 bil­lion euros, against 1,023 bil­lion euros in 2009, just be­fore the coun­try en­tered the bailout process.

The data show that the net wealth per adult Greek in­hab­i­tant amounted to 114,000 euros in 2009, while in the rest of Europe it came to 93,000 euros per adult in­hab­i­tant. Ac­cord­ing to SEV, what puts Greece in a dif­fer­ent cat­e­gory to the rest of Europe is the ex­ces­sive bor­row­ing.

SEV stresses that what is not ob­vi­ous in the data on the for- tune of Greek peo­ple and is not suf­fi­ciently pre­sented is the huge deficits of the lo­cal so­cial se­cu­rity sys­tem that will con­tinue to ab­sorb con­sid­er­able re­sources in the fu­ture, putting a lid on the coun­try’s growth un­less tack­led suf­fi­ciently. In prac­tice, the older gen­er­a­tions have not just bor­rowed from the sav­ings of fel­low Euro­peans, but also from the fu­ture sav­ings of their chil­dren.

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