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Παρασκευή, 19 Αυγούστου 2016 11:14
Expenditures for Greece’s social security system have increased by 15 percent at present due to an increase in the average life expectancy in the country and a simultaneous decrease in the number of births, according to results of a study unveiled by the Labor Institute, the research arm of Greece’s largest trade union umbrella group (GSEE).
Expenditures for Greece’s social security system have increased by 15 percent at present due to an increase in the average life expectancy in the country and a simultaneous decrease in the number of births, according to results of a study unveiled by the Labor Institute, the research arm of Greece’s largest trade union umbrella group (GSEE).
A continuing reduction in mortality rates over the coming years could increase social security expenditures by 27 percent – of GDP allocated for sector -- over the next 35 years, until 2050.
The study comes on the heels of a dire warning by the IMF, which points to a slow-burning “time-bomb” for the Greek economy and society from an increasingly aging population, in tandem with persistent double-digit unemployment.
The IMF states that despite the recent increase in retirement ages, the Greek social security system’s future viability remains tenuous.
The Washington-based Fund extended the same warning to the Eurozone as a whole, saying that aging populations negatively affect productivity and growth in the euro area, with repercussions the greatest in the less developed members, i.e. Greece.