Daniel’s Influence on the Economy: A Pricey Toll

Virtually 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 reality that a extensive record has not been created of what has been lost forever below the waters. Furthermore, there is uncertainty about no matter if the fields will be cultivated once more, if the destroyed production units will reopen, if flood victims will return to their properties, and if the solutions will regain their location in foreign markets.

Luckily, there is at present two.85 billion euros offered for recovery efforts. This incorporates €600 million from the supplementary spending budget for quick help to households and company compensation, as effectively as €2.25 billion anticipated from Brussels in 2021 and 2024. With this funding, the state has the sources required to start the challenging course of action of recovery.

Nevertheless, in order to safe EU funding, it is critical that roads, railways, sewage networks, and anti-flood and anti-erosion measures are developed and implemented properly and effectively. Sadly, the Greek state is not recognized for its speed and efficiency in such endeavors. These infrastructure projects ought to be completed swiftly in order to access the vital funding.

Whilst 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 all round economy. Inflation, GDP, and the balance sheet are regions of concern. The forecast for 2023 all round will not be considerably impacted, but there are worries about the predicament in 2024.

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

In conclusion, although the catastrophe has brought on considerable harm, the state has the sources to start recovery efforts. Nevertheless, there are challenges ahead, like the will need for effective infrastructure improvement and issues about the influence on the economy in the coming years.