Greek Economy Grinding To A Halt As Daily Protests Cripple Industrial Production
One thing that the brilliant Eurozone Keynesian shamans appear to have missed is that with the Greek economic production base (read its population) offline and protesting now virtually every day, thus completely unmotivated to actually generate incremental output, the entire Greek economy will soon grind to a halt: the latest confirmation - plunging Industrial Production, which dropped by 11% Y/Y in April, the worst economic performance since the first half of 2009. Guardian reports: "Esa, the state statistics agency, said the decline was caused by falls in the main sectors of Greek production - mining, manufacturing, electricity and water supply production. Mining fell by 6.4pc, manufacturing decreased by 11.3pc, electricity production dropped 12.2pc, while the water supply declined by 6.8pc. Greece's economy is struggling to emerge from a deep recession fueled by austerity measures taken to rescue the economy from near-bankruptcy last year." And these are the economic conditions that according to the Troica deserve a passing grade? One wonders what would force the Greek economy to get an F in Keynesianism. One also wonders how the Greek economy is supposed to rebound and cut its deficit to IMF-mandated thresholds as more and more economic capacity is eliminated and the Greek workers simply fall back on their socialized benefits and lieu of a 9 to 5 job (and retire as soon as possible to be grandfathered by existing clauses in advance of what Bailout #1298 will dictate will soon be a 100 year old retirement age).
As for that bailout, even that is no longer certain:
The indebted nation is expected to need more help in coming years, with estimates putting the sum at up to €100bn on top of an EU/IMF package granted last year worth €110bn.
Yesterday, the German business daily Handelsblatt quoted a "high-ranking European diplomatic source" who said that approval of a second rescue plan for Greece might be delayed because of resistance within the 17-nation eurozone.
Expect comparable economic data out of the other PIIGS shortly.
h/t John Lohman