IMF warns that recession devastates the poorest

For Greece in particular, the IMF report mentions that recession has devastated the poorest 10% of the population, via the decrease of untaxed income from 12,000 to 5,000 euros a year in 2011. It also mentions that measures of fiscal adjustment has led to gradual cuts in wages and pensions, while the elimination of the 13th and 14th salary and certain allowances has made things even worse.

The report continues that austerity measures, uneven in their intensity and target, are undermining the standard of living. The design of these measures could be such as to be more representative, decreasing the burden on low income citizens.

In social terms, income inequality, both in Greece and the world, is causing unrest and is responsible for violent outbursts, the report concludes. Income inequality which, alongside developed economies, is also influencing economies in the Middle East, northern Africa and Asia, is responsible for demonstrations in Athens, Lisbon, Caracas and Tripoli.