Bleak legacy of Greece’s crisis
Quarterly data by statistical agency expose financial woes, structural shortcomings
Quarterly figures released by Greece’s statistical authority (ELSTAT) last week point to a range of interesting, albeit worrying, trends. Beyond the economy (the surpluses, the debt and the gross domestic product, which appears to be on the slow path of recovery after a decade of constant decline), ELSTAT’s “Greece in Numbers” survey highlights a multitude of structural shortcomings and widespread impoverishment that are undermining the country’s long-term prospects.
Demographic trends are among ELSTAT’s most alarming findings. According to the survey, Greece’s dependency ratio – which acts as an indicator of the balance between the working population and older people typically supported by it – has increased from 51.8 in 2011 to 55.2 in 2015 (most recent data).
Meanwhile, the aging index, or the proportion of persons aged 60 years and above per 100 persons under the age of 15, rose from 132.9 in 2011 to 145.5 in 2015. Over the same period, the fertility index dropped from 1.5 to 1.3. (A total fertility rate of around 2.1 live births per woman is considered to be the replacement level in developed countries). Greece had a negative birth to death ratio every year in the past five years, as the deficit rose from 16,297 in 2012 to 29,365 in 2015 (the number last year declined to 25,894).
In 2016, moreover, the Greek unemployment rate was 23.5 percent of the workforce (1.195 million people) – the lowest in five years. However, jobless numbers remain extremely high, with the highest figure being recorded in 2013 at 1.33 million unemployed persons, or 27.5 percent of the workforce.
ELSTAT data on long-term unemployment expose another dramatic dimension of the crisis, as the rate of people out of work for 12 months or more climbed from 59.1 percent in 2012 to 72 percent in 2016. The overwhelming majority of these people receive no state benefits.
The belt-tightening imposed by the country’s lingering recession is confirmed by data on average monthly household spending on goods and services. Spending has plunged from 1,824.02 euros in 2011 to 1,419.57 euros in 2015. Meanwhile, annual household expenditure on health (which tends to be inelastic) dipped from 114.58 euros to 107.06 euros over the same period.
However, annual spending on food has seen a sharp decline from 355.05 euros to 293.30 euros, while spending on hotels, cafes and restaurants has also dropped from 189.11 euros to 141.05 euros.
ELSTAT figures also show a spike in the share of the population that is deprived of at least three out of nine material necessities due to financial difficulties – the ability to pay unexpected expenses, to take a one-week annual holiday away from home, and to have adequate heating for their home. This figure rose from 28.4 percent in 2011 to 38.5 percent last year (42.3 percent among persons aged up to 17 years old).
The data from Greece’s statistical authority also show a few positive developments. The country’s social modernization is reflected in the number of cohabitation agreements, which skyrocketed from 314 in 2012 to 3,799 last year. Meanwhile, life expectancy remains slightly higher than the European average at 78.5 years for males and 77.9 years for females in 2015, against a European average of 83.7 and 83.3 respectively in the same year.