October 2, 2023 8:53 am
Daniel’s Effect on the Economy: A Pricey Toll

Practically two weeks immediately after the catastrophe brought on by Daniel, the government and economists are nevertheless grappling with estimating the extent of the harm. The difficulty lies in the truth that a extensive record has not been created of what has been lost forever beneath the waters. In addition, there is uncertainty about no matter if the fields will be cultivated once again, if the destroyed production units will reopen, if flood victims will return to their properties, and if the merchandise will regain their location in foreign markets.

Luckily, there is at present two.85 billion euros readily available for recovery efforts. This consists of €600 million from the supplementary price range for quick help to households and small business compensation, as properly as €2.25 billion anticipated from Brussels in 2021 and 2024. With this funding, the state has the sources necessary to start the tough procedure of recovery.

On the other hand, in order to safe EU funding, it is important that roads, railways, sewage networks, and anti-flood and anti-erosion measures are developed and implemented appropriately and effectively. Sadly, the Greek state is not recognized for its speed and efficiency in such endeavors. These infrastructure projects need to be completed swiftly in order to access the essential funding.

Though the blow to Thessaly, which contributes five.two% of GDP and 14.1% of agricultural production, is projected to be manageable, there are nevertheless issues about the effects on the general economy. Inflation, GDP, and the balance sheet are regions of concern. The forecast for 2023 general will not be considerably impacted, but there are worries about the scenario in 2024.

Bank of Greece chief economist Dimitris Malliaropoulos explains that the catastrophe will have a damaging influence on GDP, inflation, and the balance sheet. He estimates that development in the fourth quarter will be about 1% due to the scenario in Thessaly.

In conclusion, when the catastrophe has brought on considerable harm, the state has the sources to start recovery efforts. On the other hand, there are challenges ahead, which includes the have to have for effective infrastructure improvement and issues about the influence on the economy in the coming years.

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