A cruise ship is docked at the Port of Piraeus, Wednesday. Greece has made major progress in repairing its public finances since the debt crisis, but its private sector remains weak, with businesses struggling and households still unable to rebuild incomes and savings, a Bank of America study says. [AP]
Greece’s recovery from its severe debt crisis is impressive, but remains imperfect, a Bank of America study says.
The recovery consisted mainly of a correction in the country’s fiscal position; it was not coupled by a corresponding recovery of the private sector, whether companies or households, contrary to what happened in other countries that faced a financial crisis.
Greek businesses’ financial statements remain weak, while Greek households are trapped in a situation where incomes never returned to precrisis levels and there is a persistent inability to save, the report concludes.
The analysis also covers other southern European EU members. Before their respective public debt crises, countries in the periphery of the eurozone had persistent deficits.
