By Frances Coppola, Coppola Comment
Via the FT’s Robin Wigglesworth comes this chart:
Greek RGDP fell by 28% between 2008 and the end of 2013. Since then it has increased by about 2%. This is a recovery, apparently.
The most recent inflation figures show CPI inflation at -1.68% and HICP (core) inflation at -1.8%. , Yes, that is deflation. Indeed Greece has been persistently in deflation for the last six years.
Annualised growth figures show RGDP currently growing by 0.6%.
Using either measure of inflation, NGDP is negative. The ECB’s preferred HICP measure gives NGDP of -1.2%.
I suppose, when you are starving, crumbs look like a square meal.