Greek economic miracle

The Greek economic miracle is the period of sustained economic growth in Greece from 1950 to 1973. During this period, the Greek economy grew by an average of 7.7%, second in the world only to Japan.

From 1941 to 1944, during World War II, Axis occupation of Greece and the fierce fighting with Greek Resistance groups had unprecedented devastating effects on the infrastructure and economy. Forced loans demanded by the occupying regime severely devalued the Greek drachma. After the end of the war, there was a bitter civil war until 1949. By 1950, the relative position of the Greek economy had dramatically deteriorated. The income per capita in purchasing power terms fell from 62% of France's in 1938 to about 40% in 1949.

The rapid recovery of the Greek economy following the Greek Civil War was facilitated by a number of measures, especially, as in other European countries, by the grants and loans of the Marshall Plan. They also included a drastic devaluation of the drachma, attraction of foreign investments, significant development of the chemical industry, development of tourism and the services sector in general and massive construction activity connected with huge infrastructure projects and rebuilding in the Greek cities.

Greek growth rates were highest during the 1950s, often exceeding 10%, close to those of a modern tiger economy. Industrial production also grew annually by 10% for several years, mostly in the 1960s. Growth initially widened the economic gap between rich and poor, intensifying political divisions.

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