If we look at the last three years (1999-2001) as a whole, however, inflation averaged 3.1 per cent, a level not experienced since the 1960s. While inflation in Greece has been above the euro-average in recent years, this is to be expected in an economy, which is growing at a relatively fast rate compared with those of its trading partners.
This result reflects the so-called productivity bias of fast growing economies. Macroeconomic stabilisation has been accompanied by healthy growth rates. Since 1996 output growth has exceeded the euro area average. Greek growth has averaged 3.5 per cent compared with 2.4 per cent in the euro area as a whole.