Is Greece About To See The Biggest Drop In Output In Modern Economic History?


Photo: AP / Kostas Tsironis

Staggering if true.From Ekathimerini, discussing the 5-year Greek slump, and where the recession stands vs. the other big ones.

Argentina suffered a 20 per cent peak-to-trough drop in output as it defaulted on its debts in 2001, while Latvia’s economy contracted by 24 per cent because of the 2008 global financial crisis.

With more belt-tightening in store in return for a proposed 130 billion euro ($172 billion) international bailout, Athens is on course to join their ranks, and possibly overtake them, said Uri Dadush, an economist with the Carnegie Endowment in Washington, a think tank.

“On the current path – which is not sustainable in my view – we may very well see Greek GDP go down 25-30 per cent, which would be historically unprecedented. It’s a disastrous crisis for them,ยป Dadush, a former senior World Bank official, said.

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