Early Warning Signs of the Economic Crisis in Greece: A Warning for Other Countries and Regions

Ron W. Nielsen ()
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Ron W. Nielsen: Griffith University,Australia.

Journal of Economics and Political Economy, 2015, vol. 2, issue 4, 460-466

Abstract: Warning signs about the developing economic crisis in Greece were present in the growth rate of the Gross Domestic Product (GDP) and in the growth of the GDP well before the economic collapse. The growth ratewas strongly unstable. On average, in less than 50 years, it decreased 10-folds but after reaching a low minimum it quickly increased 6-folds only to crash before completing the full cycle. The decreasing growthrate was leading to an asymptotic maximumof the GDP but it was soon replaced by a fast-increasing growth rate propelling the GDP alonga pseudo-hyperbolic trajectory, which if continued would have escaped to infinity in 2017. Such a growth could not have been possibly supported. Under these conditions, the economic collapse in Greece was inevitable.

Keywords: Economic growth; Gross Domestic Product; Greece; Economic crisis; Future economic growth; Early warning signs. (search for similar items in EconPapers)
JEL-codes: C00 C20 C40 C50 C53 C60 C80 (search for similar items in EconPapers)
Date: 2015
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