More Trouble for Greece?

For a more dynamic view of such analyses you may wish to explore our, recently developed, tool MapView. It is free to download as is the operating Manual (but it isn’t really so complicated as that may suggest).

If you decide to do this please drop me an email and I shall forward a zip file containing reports for US and European countries:

Here are some Complexity Facts based upon our work.

The complexity of the Greece’s economic system is in free fall. In the previous Ontonix blog on the evolution of the complexity of the structure of European Union’s economy we have seen that it was possible to predict, in advance, the effects of the sub-prime crisis and that the economic recovery is much stronger for the founding member countries (EU 15) than that of the countries that have joined after May 1, 2004 (EU12).

From the perspective of complexly (see the EU 15 curve):
  • The recession of the European Union’s economy has lead to a significant loss of structure in the system starting in mid-2006;
  • The recovery of the economy is characterized by an increase in complexity due to “more structure” that the economy has been able to generate as consequence of the corrective measures put in place by each nation.

Greece is the only one, among the EU15 countries, which does not show a turnaround of the quarterly complex growth rate (see the Greece curve). 

The continuous and systematic quarterly complexity decrease highlights that Greece’s economic structure is worsening.

The bailout funds provided by the European Union have not produced any measurable effect on the Greek economic system at least up to Q4 2010.

Complexity is a key feature  and “Meta KPI” of the level of economic sustainability. The amount of complexity expressed by an economic system determines whether the economy shall be able to achieve specific objectives and to perform certain functions. In fact, complexity may be equated to a sort of “potential”. Low complexity implies little ability to innovate, mutate or evolve. Excessive complexity reflects chaos-dominated systems, in which structure is weak. Rapid variations of complexity, independently of whether it is rise or fall, generally point to unstable and unhealthy systems.

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