Economist and former CEO of PIMCO Mohamed El-Erian recently published an article on Bloomberg, where he commented on the financial progress that has been achieved in Greece since the 2012 elections.
Mr. El-Erian noted that after two years Greece barely managed to avoid a “Grexit” from the Eurozone, which he estimates would be catastrophic for the country. The economist also points out that the seemingly unstable coalition has led Greece to relative security.
However, Mr. El-Erian underlines that the markets are excessively optimistic regarding the reforms implemented in the Greek economy and stresses that the significant reduction of loan costs for Greece and investor appetite for new treasure bill issues has distorted the impression over the domestic developments.
In his article Mr. El-Erian argues that the financial activities in Greece at present are not enough to encourage growth, while stressing that the rate of unemployment is huge and the public debt of 170% GDP is excessive. The economist warns that while a lot has been achieved in Greece, a lot more is necessary to be done.
