Deflator

Corporate profits accounted for 50% of Greece's GDP price deflator - the tool measuring the extent to which the economy's growth is due to price hikes - in the first quarter of 2023, a percentage that is the third highest among EU member-countries, according to the Greek market watchdog.

In previous Notes for Discussion, we addressed a possible path for real GDP, the deflator as a measure of prices and inflation, and the path for nominal GDP.

The previous Note for Discussion looked at a path for nominal gross domestic product and developments in the implicit GDP deflator; the latter being a broad measure of inflation in the Greek economy. We ended up asking ourselves, upon inspecting this "price vector" for Greece, whether external competitiveness has improved and has now been restored.

Greece’s statistics service (ELSTAT) said on Wednesday that the country’s economy shrank by 3.9 percent last year, correcting a previous revised estimate for 2013 gross domestic product issued in October.

Revised data released by ELSTAT on October 10 had shown a 3.3 percent GDP contraction last year.