By Vasilis Aggelopoulos

 

Unemployment was recently added to the list of economic indicators that have returned to pro-memoranda levels, closing a very long economic cycle after 14 years.

 

The Hellenic Statistical Authority (ELSTAT) recorded a single-digit unemployment rate (9.6%) in October, for the first time after 14 years, despite the fact that the employed are fewer by almost 300,000 people.

 

In his exclusive statement to “Naftemporiki”, Labour Minister Adonis Georgiadis, expressed his satisfaction with this development, and announced that “new actions and programs are being prepared, which aim to integrate young people and reintegrate the unemployed into the labor market.”

 

The return of the average salary in the private sector to the previous levels, the increase of GDP per capita, the stimulation of investments – also in real estate – so that they represent 20% of GDP and the appearance of more taxable material are the next “bets” of the economic policy.

 

Of course, the list of indicators that must return to pre-memoranda levels in order to complete the “return to normality” is much more extensive. Salaries in the private sector are much lower than in 2009, while, despite the increase and the absorption of EU funds, investments have a small participation in GDP, as a result of which there is talk of the so-called “investment gap”.

 

Tax evasion and low wages are reflected in the declared incomes to the tax office, which fall short by at least Euro 10-15 billion compared to 2009. Improving performance on these fronts is also the main objective of the economic policy for the next period of time.

 

Salaries: In its statements, the government has included the increase of the average salary in the private sector to the level of Euro 1,500. The achievement of the goal has been scheduled for the end of four-year term.

 

Taxable material: The clearing of tax returns in 2009 brought the declared income for all taxpayers above Euro 100 billion. Since then, no comparable performance has been recorded. In 2024, it is estimated that more than Euro 90 billion will be declared, as pension increases were given in 2023, while there was also an increase in the minimum wage.

 

Investments: In 2009, the so-called “gross fixed capital” participated with a rate of 20.8% in GDP. At the time, GDP was Euro 237 billion and investments provided about Euro 49 billion. In 2024, when it is estimated that GDP will return very close to pre-crisis levels, i.e. over Euro 235 billion, the participation of investments in GDP will not be greater than 16%, as investments will not exceed Euro 37 billion, despite the expected large percentage increase. This means that closing the so-called “investment gap” will require even greater mobilization to attract investment.