GDP deflator

In previous Notes for Discussion, we presented an aspirational annual target for growth in labor productivity. Greece should aim to improve annual growth in labor productivity to 1.5 percent a year, from an average of 0.4 percent a year over the last two decades.

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.

The government has adopted the Bill on the Budget for 2018 with planned revenues in the amount of RSD 1,178 billion and expenditures RSD 1,207 billion.