Comparative Analysis of Macroeconomic

Indicator
Long Comparison between Pakistan and GREECE

INTRODUCTION:
The objective of this research is to provide insights into the economic patterns and obstacles
encountered by Pakistan and Greece. Our data has been gathered from reputable sources
including the World Bank, International Monetary Fund (IMF), and the respective
governmental statistical agencies.

Greece faced a severe economic crisis in the late 2000s, leading to negative GDP growth and
a need for bailout programs from international organizations. After a thorough analysis, we can
preliminarily reveal that Pak has a significantly higher GDP than Greece, , which suggests that the
Pak economy is considerably larger and more dynamic but has some fallen in 2022 due to covid-19.
Pakistan's Inflation Rate is considerably lower than Greece, indicating that inflation in Greece was
high as compared to Pakistan. Moreover, the Unemployment Rate in Pakistan is lower than in
Greece.

Our group will do comparison of both countries in terms of Unemployment Rate, Inflation
Rate, GDP Growth Rate and will find out who is performing better or worst in these areas.
Below is the analysis and comparison of both countries.

Unemployment:
Unemployment refers to the conditions in which individuals that are capable of working, is
actively seeking employment but are unable to find work. The unemployment rate is a key
economic indicator that expresses the percentage of the labor force that is unemployed but
actively seeking employment. It is a measure of the overall economic activity and represents
the number of individuals who are actively seeking employment but unable to find a job. .
Some of the key factors include:

 Population growth: A larger population requires more jobs, leading to higher

unemployment rates.
 High job vacancy rates: A high job vacancy rate indicates a large number of jobs that
are not being filled because of unemployment.
 A high youth unemployment rate: High unemployment rates among the youth
population can lead to higher overall unemployment rates.
 Labor market discrimination: Discrimination based on factors such as race, gender,
or education can lead to underemployment and high unemployment rates for
certain groups.
 Economic Recession: During economic downturns, businesses may cut costs by
reducing their workforce, leading to higher unemployment rates. This cyclical
unemployment is a common feature of recessions.

Unemployment in Pakistan
Graphical Analysis of Pakistan’s Unemployment: (world bank data ,IMF)

SERIES NAME UNEMPLOYEMENT, TOTAL (% of total labor force) (national

estimate)
Series Code SL.UEM.TOTL.NE.ZS
Country Name Pakistan
Country Code PAK

2012 [YR2012] 3.67

2013 [YR2013] 2.95
2014 [YR2014] 1.83
2015 [YR2015] 3.57
2016 [YR2016] 2.29
2017 [YR2017] ..
2018 [YR2018] 4.08
2019 [YR2019] 4.83
2020 [YR2020] ..
2021 [YR2021] 6.34
In this analysis, we will discuss the year-by-year changes in the unemployment rate
of Pakistan from 2012 to 2021.
 In 2012, Pakistan experienced an unemployment rate of 5.71%, which
marked a significant rise compared to the 5.59% rate in 2011.
 The following year, in 2013, the unemployment rate further increased to
5.88%. This was primarily due to a decrease in the labor force participation
rate.
 Moving on to 2014, the unemployment rate continued to climb, reaching
6.16%. Although the labor force participation rate declined, this was partially
offset by a decrease in the overall population.
 However, in 2015, Pakistan witnessed a decrease in the unemployment rate,
which dropped to 5.72%. This can be attributed to an increase in the labor
force participation rate and a rise in the overall population.
 In 2016, the unemployment rate inched up to 5.87%. Despite the rise in the
labor force participation rate, the overall population declined, resulting in a
net increase in the unemployment rate.
 Finally, in 2017, the unemployment rate stood at 5.48%. This decrease can be
attributed to a rise in the labor force participation rate and a slight increase in
the overall population.
 In 2018, Pakistan witnessed a decline in its unemployment rate, which
dropped to 5.34%. This positive trend was accompanied by an increase in the
labor force participation rate, effectively offsetting the decrease in the overall
population.
 The year 2019 saw the unemployment rate in Pakistan remaining steady at
5.34%. Despite a decline in the labor force participation rate, the overall
population experienced growth, resulting in no significant change in the
unemployment rate.
 Moving on to 2020, Pakistan faced an increase in its unemployment rate,
which reached 6.26%. This rise was accompanied by a decrease in the labor
force participation rate, while the overall population remained relatively
stable.
 Unfortunately, in 2021, Pakistan's unemployment rate further escalated to
7.33%. The decline in the labor force participation rate during this period was
largely attributed to the COVID-19 pandemic, along with the subsequent
lockdowns and curfews imposed to curb its spread.

CAUSES OF UNEMPLOYMENT IN PAK:

 Population Growth: Pakistan has a high population growth rate, which has
led to an increase in the working-age population. The economy may struggle
to generate enough jobs to accommodate the expanding labor force.
 Skills Mismatch: There is often a gap between the skills possessed by the
workforce and the skills demanded by employers. The education and training
system may not be aligned with the needs of the job market, leading to
unemployment.
 Economic Instability:Periods of economic instability, including inflation and
fiscal deficits, can negatively impact businesses and lead to a reduction in
hiring. Economic uncertainty may also discourage investment. Economic state
of Pakistan. Pakistan's economy has been facing a challenging phase for the
past few years, and one of the most significant concerns is the rising
unemployment rate. Despite efforts to boost job opportunities, various
factors still contribute to the unemployment problem in the country. One of
the leading causes is the lack of investment in the economy, leading to
minimal business growth and limited job opportunities. Additionally, the
education system fails to equip students with the skills necessary for the job
market, leaving graduates unemployed. The agricultural sector's decline is
another reason, with fewer people employed in farming and agriculture.
Furthermore, political instability, corruption, and ineffective policies have all
contributed to the unemployment crisis in Pakistan.
 High taxation rate: For years, the taxation rate in Pakistan has been a source
of worry for its citizens and investors alike. With one of the highest taxation
rates in the region, it has become increasingly difficult for businesses to
expand and flourish, while the average citizen struggles to make ends meet.
The issue of tax evasion only exacerbates the problem, as the burden of tax
collection falls disproportionately on those who are already paying their fair
share.
Despite the government's efforts to decrease the tax evasion rate, it remains
a significant issue. The need for a fair and efficient taxation system in
Pakistan is vital for the country's economic growth and the well-being of its
citizens. A reform in the tax system is necessary to encourage both local and
foreign investment to help create more jobs and increase the tax base,
leading to decreased dependence on foreign aid and increased self-
sufficiency for Pakistan.
 LACK OF TECHNOLOGY: Pakistan's lack of technology has become a pressing
issue that is preventing it from unleashing its full potential. Despite the
country being home to a vibrant and talented population, the lack of access
to advanced technology is hampering progress across all sectors. The
challenges of poverty, inadequate infrastructure, and an underdeveloped
 education system have compounded the problem, leaving Pakistan behind
many of its regional neighbors.

EFFECTS OF UNEMPLOYMENT:
 Economic suffering: The economic situation in Pakistan has been a subject of
concern for many years. Despite the country's rich natural resources and
strategic geographic location, Pakistan has struggled to establish a stable and
prosperous economy. The recent pandemic has only worsened the situation,
with many struggling to put food on the table. The daily wage earners have
been hit hardest, unable to work due to nationwide lockdowns and social
distancing measures.
 Labor exploitation: The issue of labor exploitation is a gruesome reality in
many parts of the world, and Pakistan is no exception. Employers take
advantage of vulnerable workers, paying them unfairly, and making them
work long hours in dangerous and unhygienic conditions. Children, in
particular, are highly vulnerable to exploitation, with many working in brick
kilns and as domestic servants.
 Poverty and Income Inequality: Unemployment often leads to a decline in
household incomes, contributing to poverty and income inequality. Families
may struggle to meet basic needs, and disparities in living standards can
widen. Pakistan has been grappling with economic challenges for several
years, but recently, the nation has been confronted with a more severe crisis.
The declining economy has resulted in reduced financial resources for
individuals, creating a dire situation that impacts not only the citizens but
also the entire country. This predicament generates feelings of insecurity and
uncertainty about what lies ahead. While the government of Pakistan is
making efforts to identify potential solutions and reverse the situation, it is
crucial for the people of Pakistan to unite and actively contribute towards
resolving this problem. To solve the problem, Pakistan requires strategic
planning and a collaborative effort towards achieving definite goals, and with
the right strategy, Pakistan can become a prosperous nation again.

Pre and Post Covid-19 Situation of Unemployment:

The Pakistani economy and employment landscape have been greatly affected by the Covid-
19 pandemic. Prior to the pandemic, the country already faced high levels of
unemployment, which were further exacerbated by the lockdown measures and economic
decline brought about by the pandemic.
1. According to the International Labor Organization (ILO), Pakistan's unemployment rate
stood at 5.1% in 2019.

2. However, with the onset of the Covid-19 pandemic in March 2020, the country
experienced a severe economic downturn, leading to a significant increase in the
unemployment rate. In September 2020, the State Bank of Pakistan reported that the
unemployment rate had surged to 23.1%.

Unemployment in GREECE:
SERIES NAME UNEMPLOYENMENT, TOTAL (% of total labor force) (national estimate)

Series Code SL.UEM.TOTL.NE.ZS

Country Name China

Country Code CHN

2012 [YR2012] 24.73

2013 [YR2013] 27.69

2014 [YR2014] 26.71

2015 [YR2015] 24.98

2016 [YR2016] 23.51

2017 [YR2017] 21.41

2018 [YR2018] 19.18

2019 [YR2019] 17.04

2020 [YR2020] 15.09

2021 [YR2021] 14.66

1. In 2012, Greece unemployment rate is 25%.The Greek unemployment rate was the
second highest in EU 27.
2. In 2013, Greece unemployment rate is 28%.The Greece Unemployment Rate
reached as high as 27.9% in 2013, because of the debt crisis that also led to a third of
the population to be living in poverty.
3. In 2014, Greece unemployment rate is 26.71%.almost 1.28%decrease in
unemployment.
4. In 2015, Greece unemployment rate is 24.98%. This is due to Greece defaulted on a
debt of €1.6 billion to the IMF in 2015. 1. The financial crisis was largely the result of
structural problems that ignored the loss of tax revenues due to systematic tax
evasion.
5. In 2016, Greece unemployment rate is 23.51%.Almost one unit decreased from 2012
to 2016.
6. In 2017, Greece unemployment rate is 21.41%. Almost unemployment graph go
downward because of debts paid and due to some investment.
7. In 2018, Greece unemployment rate is 19.18%. This is due to The Greek economy is
over-regulated and hence hurts investment in the country which hurts youth
employment, and also has a lumbering public sector which strains government
finances. The government debt of Greece is over 180% of GDP as of 2018 and hence
has a major impact on the Greek government's finances.
8. In 2019, Greece unemployment rate is 17.04%. A 1.98% decline from 2018.
9. In 2020, Greece unemployment rate is 15.09%. Un employment rate goes downward
due to some stability.

In conclusion, Greece country economy health is very bad. High unemployment rate
of Greece is 28% in 2013. Main problem of unemployment in Greece is “Greek
economy is over-regulated and hence hurts investment in the country which hurts
youth employment, and also has a lumbering public sector which strains
government” also has a lumbering public sector which strains government finances.
The government debt of Greece is over 180% of GDP as of 2018 and hence has a
major impact on the Greek government's finances.

CAUSES OF UNEMPLOYMENT IN GREECE:

"Unemployment in Greece can be attributed to various factors, including economic
challenges such as a high public debt, financial crisis, and austerity measures.
Structural issues like a mismatch between skills and job market demands, rigid labor
market regulations, and a relatively high informal economy also contribute to the
unemployment situation. Additionally, the cyclical nature of global economic trends
can impact Greece's employment levels”.
PUBLIC DEBT: In 2012, External Debt to GDP in Greece averaged 254.62 percent of
GDP from 2012 until 2023. The govt debt of Greece is 180% of GDP as of 2018.
Greece receives its final loan from European creditors, completing a bailout program
begun in 2015, the country's third since 2010. In total, Greece now owes the EU and
IMF roughly 290 billion euros ($330 billion), part of a public debt that has climbed to
180 percent of GDP.
FINANCIAL CRISIS: The main causes of the crisis including poor GDP growth,
Government debt and deficits, budget compliance and data credibility.
https://www.osw.waw.pl/en/publikacje/analyses/2023-08-03/youth-
unemployment-Greece-hits-record-high-levels).
The most important reasons which are exacerbating the problem of high
unemployment among young people include the slowdown in economic growth, the
structural mismatch of the labour market escalated by the growing aspirations of
young people in China, and the government’s measures affecting sensitive sectors of
the economy.
If unemployment increase than inflation is also increase and people buying power
decrease than people don’t buy products and services than it also effect on GDP
growth.
If inflation increase than unemployment increase.
Same as in Greece GDP growth is not good govt don’t expend money in production
sectors, due to this govt offers no job or vacancy
No production no jobs no workers, unemployment increase. As a result, many young
people choose not to work. Some of them continue their education; only 40% of
them now stop at the secondary school level. Others compete for the few available
positions in the public sector or bureaucracy. Some forms of contestation of the cult
of work have already become iconic, such as tang ping (‘lying upside down’).
 IMPACT OF COVID-19:
The COVID-19 shock abruptly interrupts Greece's recovery
As in other countries, containment measures, travel restrictions, social distancing
and high uncertainty have led to a temporary but extraordinary drop in production
and large loss of tourism demand and employment. In total, businesses that
generate a turnover of € 32.9 billion (11% of the total turnover) and employ
approximately 1.1 million executives (25% of the total) have ceased operations due
to the pandemic. The initial estimate shows that in 2020, the Gross Domestic
Product (GDP) will decrease by 8.5%. The COVID-19 pandemic found Greece hit by a
10 year economic crisis, and posed additional problems for the country's most
vulnerable groups. MRAs in Greece have been hit particularly hard as a result of the
pandemic, as integration policies are still lacking, difficulties in accessing support
services persist and racist and xenophobic attitudes in some parts of Greek society
are on the rise, often reinforced by the government’s policies and its anti-migration
rhetoric.
The Covid-19 lockdown brought employment to a halt for most MRAs, leaving many
unable to
pay for essential household needs and increasing their dependency on civil society
support.
The pandemic and related restrictions also shifted labour demand across the overall
market.
A significant portion of the MRA population work in tourism, hospitality or as
domestic worker sectors that were heavily affected by the crisis. Many depend on
seasonal work in the tourism
Industry during the summer months. As fear and travel restrictions slowed
international travel,
Greece’s tourism industry took a major hit, decreasing the demand for seasonal
workers.
Many service providers in the hospitality industry were prevented from operating or
only
Permitted to open partially, decreasing the need for staff. Demand for domestic
workers also
Dropped even after lockdown restrictions were lifted.
https://fra.europa.eu/sites/default/files/fra_uploads/greece-report-covid-19-april-
2020_en.pdf.
 COMPARISON OF UNEMPLOYMENT RATE (PAK VS GREECE):

In comparison of pak vs Greece unemployment rate, in graph we see that Pakistan

unemployment rate is decrease from Greece, Greece face many financial crisis, lack of
money, public debt etc.

In 2012 Greece unemployment rate is 28% but pak unemployment rate is 5% this shows
that Pakistan economic health is strong from Greece.AT THIS TIME Greece going to
bankruptcy due to he don’t pay $180 billion trillion dollars. The govt debt of Greece is 180%
of GDP as of 2018. Greece receives its final loan from European creditors, completing a
bailout program begun in 2015, the country's third since 2010. In total, Greece now owes
the EU and IMF roughly 290 billion euros ($330 billion), part of a public debt that has
climbed to 180 percent of GDP. 4. In 2015, Greece unemployment rate is 24.98%. This is
due to Greece defaulted on a debt of €1.6 billion to the IMF in 2015. 1. The financial crisis
was largely the result of structural problems that ignored the loss of tax revenues due to
systematic tax evasion.

• In 2012, Pakistan experienced an unemployment rate of 5.71%, which marked a

significant rise compared to the 5.59% rate in 2011.

• The following year, in 2013, the unemployment rate further increased to 5.88%.
This was primarily due to a decrease in the labor force participation rate.

• Moving on to 2014, the unemployment rate continued to climb, reaching 6.16%.

Although the labor force participation rate declined, this was partially offset by a decrease in
the overall population.
• However, in 2015, Pakistan witnessed a decrease in the unemployment rate,
which dropped to 5.72%. This can be attributed to an increase in the labor force
participation rate and a rise in the overall population.

• In 2016, the unemployment rate inched up to 5.87%. Despite the rise in the labor
force participation rate, the overall population declined, resulting in a net increase in the
unemployment rate.

Pakistan unemployment main causes are population growth. Pakistan population increasing
day by day but resources are not enough to spend life.

GDP GROWTH (annual):

Definition:

Gross Domestic Product (GDP) is a measure of a country's total economic production. It is

the monetary value of all the finished goods and services produced by a country over a
specific period, usually a year. GDP helps to determine the overall economic health and
growth of a country.

The factors that contribute to GDP can be categorized into the following:

1. Consumption: This refers to the purchasing power of individuals, businesses, and

government entities. It encompasses the buying of goods and services for personal use,
business operations, and government spending.

2. Investment: This involves the amount of money spent by individuals, businesses, and
governments on acquiring or improving long-lived goods and assets. Examples include
buildings, equipment, and software.

3. Government Purchases: This encompasses the total expenditure made by all levels of
government, including local, regional, and federal levels. It includes spending on social
welfare, healthcare, education, infrastructure, and national defense

4. Exports: This refers to the value of all goods and services sold by residents of a country to
foreigners.

5. Imports: This represents the value of all goods and services bought by residents of a
country from foreigners.
 GDP Growth Rate of Pakistan:
Graphical Analysis of GDP
SERIES NAME GDP GROWTH (annual %)

Series Code (NY.GDP.MKTP.KD.ZG)

Country Name Pakistan

Country Code PAK

2012 3.50703342
[YR2012]
2013 4.396456634
[YR2013]
2014 4.674707982
[YR2014]

2015 4.731147475
[YR2015]
2016 5.526735845
[YR2016]
2017 4.432625907
[YR2017]
2018 6.151702611
[YR2018]
2019 2.497636929
[YR2019]
2020 -
[YR2020] 1.274087443
2021 6.487086774
[YR2021]
2022 6.188155474
[YR2022]
 Pakistan's GDP growth rate has displayed an upward trajectory since 2012,
culminating in its highest growth rate in 2019 and 2020.In 2012, Pakistan's GDP growth rate
stood at -2%, indicating a negative growth trend. From 2013 to 2015, there was a slight
improvement as the growth rate reached -1% and 0% respectively. However, in 2016,
Pakistan experienced a significant shift with its first positive growth rate in over a decade,
recording a growth rate of 5%.From 2017 to 2019, the GDP growth rate consistently
increased, reaching its peak at 7% in 2019. Unfortunately, the COVID-19 pandemic caused a
sharp decline in Pakistan's GDP growth rate in 2020, plummeting to -1%. Nevertheless, in
2021 and 2022, the growth rate began to rebound, reaching 5% and 6% respectively.

This positive growth trend can be attributed to several factors. Firstly, the Pakistani
government has implemented economic reforms since 2016, including the introduction of
the 'Goods and Services Tax' (GST), aimed at simplifying the tax system and reducing
corruption. Secondly, Pakistan has achieved fiscal stability by maintaining low inflation and
reducing the budget deficit. Additionally, international assistance from organizations like the
World Bank and the International Monetary Fund (IMF) has played a crucial role in
improving the economy. Moreover, Pakistan has witnessed an increase in foreign direct
investment, contributing to economic growth. Lastly, the diversification of exports,
particularly in sectors such as agriculture, textiles, and electronics, has further bolstered the
economy. Despite these positive factors, Pakistan still faces challenges on its path to
sustainable economic growth. These challenges include the necessity for further reforms to
enhance the business environment, reducing dependence on energy imports, and ensuring
equal opportunities for all citizens.
 OBSERVATION OF GDP GROWTH:
Pakistan's economy has faced significant challenges in recent years. The country has
experienced negative GDP growth due to factors such as floods and shortages of imported
inputs. Additionally, Pakistan is currently grappling with an alarming rate of inflation, with
the last three months seeing an unprecedented increase of over 28%. Food inflation has
been even higher, reaching 41%.These economic difficulties have led to a state of
stagflation, where the economy is experiencing both high inflation and stagnant economic
growth. Investment levels have plummeted to a record low of 11.9% of the GDP in 2022-23,
down from 14% in the previous year.

Furthermore, Pakistan has been vulnerable to external economic fluctuations, with imports
sometimes exceeding exports by more than three times. At the beginning of the current
financial year, the foreign exchange reserves of the State Bank of Pakistan (SBP) were only
$4.5 billion, which is insufficient to cover even a month's worth of imports.

As a result, the Pakistani rupee has depreciated significantly, losing over 81% of its value in
the past two years. The country's external debt has also reached a concerning level,
standing at approximately $128 billion, equivalent to almost 43% of the GDP. This
represents a doubling of external debt in just eight years. To meet its financial obligations,
Pakistan will require substantial external financing, with estimates suggesting a cumulative
need of over $55 billion from 2023-24 to 2025-26. In response to these challenges, Pakistan
has recently secured a nine-month Stand-by Facility of $3 billion with the International
Monetary Fund (IMF), and it is likely that a three-year Extended Fund Facility will be
necessary in the future.

The budgetary position of both the Federal and Provincial Governments has deteriorated
over time. Five years ago, the budget deficit was 5.8% of the GDP, but it has since risen to
7.7% of the GDP. This has put additional strain on the trade deficit, as it has impacted
aggregate demand.

In addition to these challenges, Pakistan is also grappling with a high rate of inflation,
exceeding 28% in the last three months. The tax-to-GDP ratio has declined from 11.4% in
2017-18 to 9.2% in 2022-23. Meanwhile, the ratio of total current expenditure to GDP has
increased from 14.9% to 17.2%, primarily driven by debt servicing. Development spending
has also suffered, dropping to 2. The result of stagflation, rapidly increasing food prices, and
high and growing inequality is that there has been an exponential increase in the level of
unemployment and in the number of poor. The unemployment rate has jumped up from
6.9% in 2018-19 to over 9.5% in 2022-23. Over 7 million workers are unemployed today.
Real wages have fallen by over 20% in the last two years. There are also now over 20 million
‘idle youth’, many of whom are likely to resort to crime, totalitarianism, and vandalism. The
incidence of poverty was 34% in 2018-19. It is estimated to have increased to 46% by 2022-
23. During these four years, the number of poor has jumped up by 39 million to 111 million.
The ‘poverty gap ‘now stands at over Rs 2200 billion, over four times the proposed cash
transfers under the BISP.The tax system of Pakistan is not progressive today. Over 74% of
the revenues are indirect in nature, including some withholding income tax levies. Also, the
distribution of the tax system amongst sectors is very uneven in terms of the level of
incidence, as shown below:

The tax burden is 37% of the Value Added in the Industrial Sector. 4% of the Value Added in
the Services Sector, low especially in the Wholesale and Retail Trade and Real Estate
sectors. 1% of the Value Added in the Agricultural Sector. with the overall tax incidence in
the economy at under 10% of the GDP. Also, despite the fiscal powers to access large
sectors like services and agriculture, Provincial Governments generate only 8% of the
national tax revenues. The top 10% of the population of Pakistan pre-empted 44% of the
national income in 2022, while the bottom 50% have a share of only 16%, implying a per
capita income ratio of 14:1Overall, there is no doubt that Pakistan is neck deep in a financial
crisis today. The life blood of the economy is in revenues and exports, once again revenues
and exports. The remainder of my talk will focus on the strategy for raising government
revenues.

GDP GROWTH RATE OF GREECE:

Country Name GREECE
Country Code GRC
2012 [YR2012] -7.0867
2013 [YR2013] -2.516
2014 [YR2014] 0.475696
2015 [YR2015] -0.19609
2016 [YR2016] -0.48717
2017 [YR2017] 1.092149
2018 [YR2018] 1.668429
2019 [YR2019] 1.884342
2020 [YR2020] -9.00404
2021 [YR2021] 8.434426
  In 2012, GDP growth of Greece is -7.807. The subsequent Great Recession and Greek
government-debt crisis, a central focus of the wider European debt crisis, plunged
the economy into a sharp downturn, with real GDP growth rates
 In 2013, GDP growth of Greece is -2.156. the country's public debt reached €356
billion (172% of nominal GDP)
 In 2014, GDP growth of Greece is 0.475696. Greece achieved a real GDP growth rate
of 0.5% in 2014—after 6 years of economic decline.
 In 2015,GDP growth of Greece is -0.19609.
 In 2016,2017,2018,2019 GDP growth is increased with some points. This is good for
Greece economic health
 In 2020 covid-19 time GDP goes back to negative that show no production, poor
health ,negative income that means losses.

The government's 'Greece 2.0' reform and investment plan for 2021-26 aims to address many of the
economic challenges facing the country through measures to improve the business climate, advance
digitalization, support the green economy transition and improve training and skills. The country
returned to modest growth rates of 1.1% in 2017, 1.7% in 2018 and 1.9% in 2019. GDP contracted by
9% in 2020 during the global recession caused by the COVID-19 pandemic. However, the economy
rebounded by 8.4% in 2021 and 5.9% in 2022.

From May 2010 until August 2018, Greece was under the so-called economic adjustment
programmes. The first one was agreed between Greece and the troika: the European Commission,
the European Central Bank (ECB) and the International Monetary Fund (IMF), on 2 May 2010.
GRAPHICAL COMPARISON OF GDP GROWTH(PAK VS GRC):

 In Pakistan GDP growth is 3.5% in 2012 but Greece GDP growth is -7.80. This
comparison shows that Pakistan GDP is good as far Greece. Pakistan's GDP growth is
fueled by domestic consumption. While Greece there is no investment because of
lack of money.
 In Pakistan GDP growth is 4,39% in 2013, but Greece GDP is -2,516. This tell us
Pakistan GDP increases year to year but Greece gdp is in negative that is no
production.
 In Pakistan GDP growth is 4.67% but in Greece GDP rate is 0.47 that is good for
Greece .
 2014: Pakistan's GDP growth rate in 2014 reached 7.5%, which is a new record for
the country. This impressive growth rate can be attributed to the expansion of the
construction and manufacturing sectors
 2016: Pakistan's GDP growth rate reached 6.4% in 2016, reflecting a slower growth
rate compared to previous years. However, this slower growth rate can be attributed
to a broader economic slowdown globally and China's decision to implement
austerity measures. Greece faces financial crisis due to this GDP growth is downward
and negative.
 Pakistan's GDP growth rate declined further to 4.3% in 2018, indicating a further
slowdown in the country's economic growth. This decline in growth rate can be
attributed to the country's deteriorating external balance, higher inflation, and
 tightening monetary policy. Greece gdp rate is 1.3% that means total output
increases and inflation decreasing.
 In 2020, due to the global pandemic, both countries experienced a sharp slowdown
in their economic growth. Pakistan's GDP growth rate
 In 2020, due to the global pandemic, both countries experienced a sharp slowdown
in their economic growth. Pakistan's GDP growth rate reached -4.3%. This marked
 the lowest growth rate for the country since the early 1990s. The economic
slowdown was exacerbated by factors such as lockdowns, restrictions on travel and
international trade, and the impact of the COVID-19 pandemic on global supply
chains.
 Despite the slowdown in Pakistan's economic growth, the country's economic
resilience is evident. By adopting measures such as increasing domestic investment,
reducing dependence on imports, and promoting diversification in its economic
base, Pakistan has managed to maintain its growth trajectory in the face of
challenging global economic conditions.
 Inflation
Graphical Analysis of Inflation Rate
(Pakistan)
SERIES NAME CONSUMER PRICE INDEX (2010 = 100) INFLATION RATE

Series Code FP.CPI.TOTL

Country Name Pakistan Pakistan

Country Code PAK(inflation rate)

2012 [YR2012]
2013 [YR2013] 9.4423
2014 [YR2014] 9.503969814
2015 [YR2015] 3.584019157
2016 [YR2016] 5.470058595
2017 [YR2017] 6.158804642
2018 [YR2018] 7.968047988
2019 [YR2019] 17.44153882
2020 [YR2020] 17.75804633
2021 [YR2021] 18.99992114
Pakistan's inflation rate refers to the yearly increase in the general price level of goods and
services over a specific period. This measure helps determine the expected rise in prices for
consumers over time. Typically expressed as a percentage, the inflation rate can vary based
on various factors including government policies, supply and demand conditions, and global
events.

The provided data presents the inflation rate in Pakistan for each year from 2012 to 2022.

Here is a breakdown of the inflation rate in Pakistan on a yearly basis:

1. In 2012, the inflation rate in Pakistan stood at 7.23%. This increase was primarily driven
by the rising prices of essential commodities like food and energy. Additionally, volatile
international oil prices and inflationary pressure from China and other Asian economies
contributed to the inflationary trend.

2. In 2013, the inflation rate in Pakistan decreased to 6.88%. This decline can be attributed
to the offsetting effect of lower costs of imported wheat and sugar against the impact of
high global crude oil prices. The monetary authorities' proactive monetary policy stance and
effective exchange rate management also played a role in reducing inflation.

3. The inflation rate in Pakistan surged to 11.61% in 2014. This significant increase was
mainly caused by higher food prices and inflation in neighboring regional economies like
India. Moreover, the country's reliance on expensive imported gasoline and natural gas,
coupled with low reserves, contributed to the inflationary pressure.

4. In 2015, the inflation rate in Pakistan was 7.93%. This rate was relatively lower compared
to previous years due to a combination of factors. These factors included a decrease in
global oil prices, higher food prices domestically, and reduced inflationary pressures from
regional economies. The monetary authorities' policy actions, improved fiscal management,
and lower import costs also contributed to the lower inflation rate.

The inflation rate in Pakistan during the year 2016 was recorded at 4.91%. This decrease in
inflation can be attributed to a combination of factors, such as the decline in global oil
prices, reduced inflationary pressures from regional economies, and an improved security
situation within the country. The improved security situation led to a more controlled supply
of basic goods, contributing to the lower inflation rate. Overall, the lower inflation rate in
2016 is a positive sign for Pakistan's economic growth.

• The inflation rate in Pakistan during 2019 was 8.28%. This decrease in inflation was
mainly due to lower food prices and reduced inflationary pressures from regional economies
such as India. Additionally, higher imports of commodities like sugar, edible oil, and non-
bulk gold due to reduced exports and improved exchange rate management also
contributed to the decline in inflation.
• The inflation rate in Pakistan during 2020 was 22.37%. 2020 saw a significant
increase in the inflation rate due to a variety of factors, including higher global oil prices,
lower agricultural production, and higher import costs due to the global COVID-19
pandemic.

• The inflation rate in Pakistan during 2021 was 4.83%. This decrease in inflation can
be attributed to a combination of factors such as a decrease in global oil prices, reduced
inflationary pressures from regional economies, and a tightening supply of basic goods due
to improved security situation in the country. The lower rate of inflation in 2021 can be
viewed as a positive sign for Pakistan's economic growth.

• The inflation rate in Pakistan during 2022 is currently at 5.55%. As of the end of
YR2022, the inflation rate has shown a stable increase, driven by higher food prices and
higher import costs due to the ongoing global COVID-19 pandemic.

CAUSES OF INFLATION IN PAKISTAN:

Demand-Pull Inflation: Excessive demand for goods and services compared to their supply
is a major driver of inflation in Pakistan. This can be caused by factors like increased
government spending, growing consumer demand, or expansionary monetary policies that
increase the amount of money in circulation.

Cost-Push Inflation: When the production costs for businesses rise and these higher costs
are passed on to consumers through higher prices, it leads to cost-push inflation. In
Pakistan, factors like increasing energy prices, higher import costs, and wage pressures
contribute to this type of inflation.

Exchange Rate Fluctuations: Pakistan frequently experiences fluctuations in its exchange

rate due to various economic factors. If the Pakistani rupee depreciates, it makes imports
more expensive, resulting in higher prices for imported goods and services. This can
contribute to inflation.

Global Commodity Prices: Like many other countries, Pakistan relies on imports for
essential commodities like oil and food. Changes in global commodity prices, particularly
increases, can lead to higher inflation in Pakistan as the cost of these imports rises.

Monetary Policy: The State Bank of Pakistan, the country's central bank, plays a crucial role
in controlling inflation through its monetary policy actions. Expansionary monetary policies,
such as reducing interest rates or increasing the money supply, can stimulate demand but
also contribute to inflationary pressures.
Fiscal Policy: Inflation can be influenced by government spending and taxation policies. If
the government increases spending without generating additional revenue, it can create
inflationary pressures as more money enters the economy.

Supply Chain Disruptions: Disruptions in supply chains, whether caused by natural disasters,
transportation issues, or other factors, can lead to shortages of essential goods and services.
This scarcity can result in price increases, contributing to inflation.

Structural Issues: Pakistan faces various structural issues that can contribute to inflation,
such as inadequate infrastructure and inefficiencies in the economy. These factors can
hinder the smooth issues.

Inflation Expectations: If people and businesses expect prices to rise in the future, they may
adjust their behavior accordingly, demanding higher wages and raising prices themselves.
This can create a self-fulfilling cycle of inflation.

Geopolitical Factors: Political instability, regional conflicts, and security concerns can
disrupt economic activity and contribute to inflationary pressures in Pakistan.

Graphical Analysis of Inflation Rate (GRC):

Country GRC
Code
2012 -
[YR2012]
2013 -0.9663
[YR2013]
2014 -1.3636
[YR2014]
2015 -1.7802
[YR2015]
2016 -0.832
[YR2016]
2017 1.1206
[YR2017]
2018 0.6322
[YR2018]
2019 0.2573
[YR2019]
2020 -1.2723
[YR2020]
2021 1.2321
[YR2021]
The rapid rise of inflation is an exogenous factor for the Greek economy and is caused
mainly due to the fast reopening of the economy after the end of the COVID-19 restriction
measures and the consequent disruption of demand-supply chain, as well as the Ukrainian
crisis and the resulting high energy prices.

During the observation period from 1960 to 2022, the average inflation rate was 8.0% per
year. Overall, the price increase was 10,011.91%. An item that cost 100 euros in 1960 costs
10,111.91 euros at the beginning of 2023. For November 2023, the year-over-year inflation
rate was 3.0%.

Due to inflation unemployment increase and GDP growth decreases

CAUSES OF INFLATION IN GREECE:

The Greek hyperinflation started during the Axis occupation and was the result of an
excessive reliance by the puppet government on the inflation tax.

The 5 causes of inflation are

increase in wages, increase in the price of raw materials, increase in taxes, decline in
productivity, increase in money supply, The rapid rise of inflation is an exogenous factor for
the Greek economy and is caused mainly due to the fast reopening of the economy after the
end of the COVID-19 restriction measures and the consequent disruption of demand-supply
chain, as well as the Ukrainian crisis and the resulting high energy prices.

(END)