Greece committed itself to an ambitious macroeconomic stabilization policy in order to reduce inflation from 10.8% (1993) to 3.3% (1999), to restrict the budget deficit from 13.2% of GDP (1994) to 2.1% of GDP (1999) and public debt from 112% of GDP (1994) to 103% (1999). The government’s economic reforms have been a key factor behind the country’s strong post-pandemic recovery. But the economy faces a number of headwinds including surging energy and food prices, and renewed global uncertainty. Economic Adjustment During the crisis, Greece faced a number of economic reforms in order to improve its economic situation and reduce its debt burden. This included cuts in public spending and increases in taxes. It was also meant to increase the country's credibility. In May 2010, Greece signed a Memorandum of Understanding (MoU) with the European Union to obtain a loan worth EUR 110 billion in exchange for structural reforms, fiscal consolidation measures and privatization. The programme a...
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