Econometric Analysis of GDP and Income Inequality in Greece: A Diachronic Study Across Pre-Crisis, Crisis, and Post-Crisis Periods

This study examines the relationship between GDP and income inequality in Greece across three key periods: pre-crisis (2003-2008), crisis (2009-2014), and post-crisis (2015-2020). The data, sourced from the World Bank, includes annual GDP figures and Gini coefficient measurements. The hypotheses tested whether economic growth increased inequality before the crisis, whether the financial downturn exacerbated inequality, and whether post-crisis GDP recovery improved income distribution.

Findings reveal that in the pre-crisis period, while GDP grew steadily, income inequality also increased moderately, suggesting uneven distribution of economic gains. During the crisis, GDP contracted sharply, and income inequality worsened significantly due to austerity measures, high unemployment, and reduced social protections. In the post-crisis period, despite some economic recovery, inequality remained high, indicating that structural issues, such as unemployment and weak social mobility, continued to prevent significant reductions in inequality.

The data suggest that while economic growth is important, it is insufficient by itself to reduce income inequality without targeted policies. The findings highlight the need for comprehensive reforms, including progressive taxation, stronger social safety nets, and inclusive economic growth policies to address persistent inequality in Greece.