WASHINGTON — Some economists say that the prolonged Greek recession and severe economic crisis is at an end, while others remain skeptical.
Reuters reports that “Greek business is awakening from a coma” and that a calm has suddenly descended upon the Greek economy. But, it still does not allay the fears of other European Union countries that have to foot Greece’s bills.
The Greek government said that a recovery is in order, but some economists say that these numbers prove stagnation, not growth, is next on the menu for Greek consumers. The main reason? Significant debt burden, high unemployment and tax evasion (which takes up to 5% of the country’s gross domestic product, or GDP).
What is the unemployment? A staggering 27% and 2 out of every 3 young Greeks do not have a job. And, this is the sixth consecutive year of an economic recession.
Greek debt stands at 175% of its GDP, which is untenable and almost impossible to pay off without outside help.
Germany is resistant to putting more bailout money toward Greece and has reiterated that point time and time again.