Economy continues to rely on troubled private consumption

The problematic slide in private consumption, on which Greece's economy continues to rely, is not only unsustainable but also poses a serious threat to the economy. Instead of Greece increasing its export and production activity and attracting investment, the contribution of constantly shrinking consumption toward gross domestic product is growing as a percentage, in a vicious cycle. This conclusion stems from recent studies conducted by PricewaterhouseCoopers, by NAI Hellas and by Hellenic Federation of Enterprises (SEV).

Investments as a ratio of gross domestic product drifted from the European average from 2009 to 2016, creating, according to PwC, a growing investment gap of 540 billion euros. At the same time the retail sales index fell 29.7 percent according to Hellenic Statistical Authority data processed by NAI Hellas researchers. Even with that drop, which in some...