CATASTROIKA: Greeks 40% poorer since the crisis 2008

Greeks are nearly 40 percent poorer than 5 years ago, with disposable incomes down by a third since the country entered into recession.

The economic suffering has made saving nearly impossible for average citizens, with the households putting away 8.7 percent less in the second quarter, 2 percent year-on-year. Gross disposable incomes fell 29.5 percent between the second quarters of 2008 and 2013, the ELSTAT statistics service said on Tuesday in a report.

Greece has received over $315 billion (240 billion euros) since 2010 from Troika lenders, but still is buried in debt- which exceeds 160 percent of GDP.

On the positive side Russian investors are pursuing deals to help cash-strapped Greece privatize its economy and pay off its huge debt.

Russian Railways RZD may take a 100 percent state in Greek’s TRAINOSE, and Gazprom has renewed talks with state-owned gas company DEPA.

Greece hopes privatization and expansion of the railway will help it contribute to the 19 billion euro target Greece aims to raise to cut debt.

With Russian investments in Greek railways estimated at up to $3 bln annually, Greece would become part of the Eurasian transportation network, bringing both more passengers and goods to and from Europe.

Russians are known for their lavish spending habits abroad, Matviyenko said, and estimated each individual Russian tourist spends on average 1000 euro on shopping and entertainment, a direct cash injection into Greece’s troubled economy.


Categories: Business, Politics

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