OECD: The negative performance of the Greek economy in the last eight years

The Organization for Economic Cooperation and Development published new data on Tuesday that highlights, among other figures, the negative performance of the Greek economy in the last eight years between the first quarters of 2007 and 2015.

The initial decline in Greece’s various economic indexes was in line with the OECD’s general negative trend. However, the OECD as a whole began recovering after 2010, while the situation in Greece kept deteriorating and the country’s GDP per capita had declined by 22.8% up to the first quarter of 2015.

Despite this negative performance, in 2014 a positive trend began. During that year, Greece’s GDP per capita saw a slight increase which carried over to the first quarter of 2015. The third quarter of 2013 was the worst point for Greek GDP per capita as the index declined by 24.7% in comparison to the first quarter of 2007.

The data on household disposable income is also disparaging with Greece’s index having decreased by 27.5% since 2007, including a 3.7% increase from the first quarter of 2014 until the first quarter of 2015.

Greek Net Cash Transfers to households have increased by 5.9% since 2009. However, 2014 over-performed compared to previous years as a 3.8% increase occurred in that year alone.

Savings in Greece have significantly decreased as well. The OECD notes that in the beginning of 2007 Greek households saved 3.7% of their disposable income. By the end of 2013 the same rate dropped to negative 11.1%, meaning that Greeks used up 11.1% of their existing savings. In 2014, the trend began to reverse with the dissavings rate having shrunk to 6.8% by the end of the first quarter of 2015.