GREECE IS CHANGING 2010 2012 April 2012 Fiscal

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GREECE IS CHANGING 2010 – 2012 April 2012

GREECE IS CHANGING 2010 – 2012 April 2012

Fiscal consolidation 2 Primary budget deficit decreased from € 24. 1 bn in 2009

Fiscal consolidation 2 Primary budget deficit decreased from € 24. 1 bn in 2009 to € 10. 7 bn in 2010 to € 4. 7 bn in 2011 General Government Deficit & General Government Primary Deficit 2008 2009 0 (bn euro) 2010 2011 -5 -4. 7 -10. 7 -11. 2 -15 -20 -25 -19. 6 -22. 9 -24. 1 -23. 5 -30 -35 -36. 1 -40 General Government Deficit Source: ELSTAT/Eurostat, April 2012 General Government Primary Deficit

Cyclically adjusted Primary Balance* (% GDP) 3 4 2. 3 2 1. 1 -0.

Cyclically adjusted Primary Balance* (% GDP) 3 4 2. 3 2 1. 1 -0. 1 0 -2 0. 700000001 -0. 3 -2. 1 -1. 1 -2. 2 -0. 8 -6. 3 -4. 9 -2. 2 -4 -6 1. 2 -6. 9 -8 -7 -9 -10 -12 -10. 6 -12 -14 2008 2009 Ireland 2010 Portugal 2011 Euro area 2012 (Proj. ) Greece *i. e. correcting for the effect of the business cycle (structural budget deficit) Source: IMF, Fiscal Monitor, April 2012

The fastest fiscal consolidation* Primary Balance Improvement (percentage points of GDP) 4 Country Greece

The fastest fiscal consolidation* Primary Balance Improvement (percentage points of GDP) 4 Country Greece Denmark Latvia Portugal Ireland Germany Netherlands Sweden Austria UK Finland Belgium Italy Spain US France Japan From 2009 1982 2009 1986 1995 1993 1992 1981 1987 1995 1992 1993 1981 min -10. 4 -2. 6 -8. 2 -7. 3 -1. 3 -6. 0 -3. 6 -5. 5 -1. 8 -4. 9 -2. 9 -7. 4 -3. 6 -2. 1 -0. 9 -3. 2 -0. 7 To 2011 1986 2011 1989 2000 1997 2000 1990 1993 2001 2000 1991 max -2. 2 11. 6 -2. 3 -1. 6 5. 1 4. 3 5. 6 7. 1 1. 8 6. 3 9. 6 4. 9 2. 6 2. 5 5. 1 1. 4 5. 3 Total 8. 2 14. 2 5. 9 5. 7 6. 4 10. 3 9. 2 12. 6 3. 6 11. 2 12. 5 12. 3 6. 2 4. 6 6. 0 Years 2 4 2 2 3 5 5 7 2 7 8 9 6 6 8 7 10 * Fiscal consolidation episodes as defined in OECD Economic Outlook 81, May 2007 Source: AMECO Avg 4. 10 3. 55 2. 95 2. 85 2. 13 2. 06 1. 84 1. 80 1. 60 1. 56 1. 37 1. 03 0. 77 0. 75 0. 66 0. 60

Current Account Deficit declining 5 üCurrent Account Deficit fell from 14. 9% GDP in

Current Account Deficit declining 5 üCurrent Account Deficit fell from 14. 9% GDP in 2008 to 9. 8% GDP in 2011 üCurrent Account Deficit (excl. Oil and Gen. Govnt Net Interest) in 2011 was around 0% GDP, down from 6% GDP in 2008 This demonstrates the burden of the debt servicing cost % GDP 0 0. 0 -0. 6 -2 -2. 3 -1. 2 -2. 0 -4. 0 -3. 3 -4 -4. 2 -4. 1 -4. 6 -6. 0 -5. 8 -6 -6. 3 -6. 5 -8 -7. 6 -7. 1 -7. 2 -7. 9 -10 -9. 8 -9. 7 -11. 4 -10. 1 -10. 5 -11. 1 -12 -14. 6 -16 Current Account 2003 2004 Source: Bank of Greece Current Account 2005 2006(excl. Oil) 2007 -14. 9 Current Account 2009 (excl. Oil & GG Net Interest) 2008 2010 2011

Competitiveness recovering 6 üWithin two years, 2010 -11, Greece managed to regain over 50%

Competitiveness recovering 6 üWithin two years, 2010 -11, Greece managed to regain over 50% of competitiveness lost during 2000 -09 üFrom 2009 to 2011, the Real Effective Exchange Rate (vis-à-vis its 26 EU trade partners), based on Unit Labor Cost, fell from 114. 9 to 107. 5 index points Competitiveness Recovery (201011) Recovery Source: European Commission

The 2 nd Fastest Changing Economy 7 üAccording to the Euro Plus Monitor, Greece

The 2 nd Fastest Changing Economy 7 üAccording to the Euro Plus Monitor, Greece ranks No. 2 in terms of the degree of adjustment in its economy during 2009 -2011 Fastest adjusting Eurozone economies (Adjustment Progress Indicator) Source: The 2011 Euro Plus Monitor: progress amid the turmoil, The Lisbon Council/Berenberg Bank, November

Greece is changing fast 8 h ut o S Source: OECD, Economic Policy Reforms:

Greece is changing fast 8 h ut o S Source: OECD, Economic Policy Reforms: Going for Growth 2012

Greeks are the hardest working in Europe! 9 Annual total hours worked person and

Greeks are the hardest working in Europe! 9 Annual total hours worked person and productivity per hour (2010) 2500 2017 2000 1956 1939 1880 1795 1778 1749 1714 1676 1690 1674 1647 1624 1616 1599 1564 1551 1540 1537 1500 1439 1278 1079 998 1000 812 744 570 442 500 447 418 570 496 801 846 783 979 1377 909 870 843 841 1413 1408 1278 998 582 543 Average hours worked person Source: OECD, Stat. Extracts: Labour productivity levels in the total economy, 2010 er m an N y et he rla nd s w ay G e N or an c k Fr ar en m nd Productivity per hour (USA = 1000) D Ire la um lg i ea ro Be ar ria st Eu Au rg bo u m ed en xe Lu Sw do m n U ni te d Ki ng Sp ai ni a ov e nd Sl nl a Fi rtu ga l lic Po ly ep ub R Sl ov ak R ch ze C Ita ic ep ub l ni a to Es la nd Po ar un g H G re ec e y 0