Surreal image of infant mortality in Greece during economic crisis

Austerity's Toll: How Economic Measures Impact Infant Health

Avery Sinclair in Health & Wellness July 2025 • 4 min read.

"Examining the link between fiscal austerity in Greece and a heartbreaking rise in infant mortality rates."

In times of economic hardship, governments often implement austerity measures—policies designed to reduce budget deficits through spending cuts and increased taxes. While these measures aim to stabilize the economy, their impact on public health, particularly for the most vulnerable populations, can be devastating. A recent study sheds light on the tragic consequences of austerity, revealing a disturbing link between fiscal austerity in Greece and a significant rise in infant mortality rates.

Before the financial crisis of 2009, Greece enjoyed one of the highest levels of public health in the OECD, with infant mortality rates well below the OECD average. However, as the country plunged into economic turmoil and implemented stringent austerity measures mandated by the Troika (the European Commission, the European Central Bank, and the International Monetary Fund), this positive trend reversed, leading to a heartbreaking increase in infant deaths.

This article explores the findings of the study, examining how austerity measures in Greece impacted infant mortality rates, why these effects were more pronounced among boys, and what lessons we can learn about protecting public health during times of economic crisis.

The Unfolding Crisis: Austerity and Infant Mortality in Greece

Surreal image of infant mortality in Greece during economic crisis

The study, leveraging advanced statistical methods, compared Greece to a carefully selected pool of OECD and Mediterranean countries to create a "synthetic control" group. This approach allowed researchers to estimate what would have happened to infant mortality rates in Greece had the austerity measures not been implemented. The results were alarming.

Researchers found a clear and pervasive increase in infant mortality following the implementation of austerity measures. Compared to the synthetic control scenario, austerity policies were associated with a tragic derailment and permanent increase in infant mortality, continuing up to the present day. The cumulative infant mortality cost of these policies is estimated to exceed 10,000 infant deaths, or nearly 850 deaths for each year the austerity policies were in effect.

Salary cuts and layoffs among public employees
Reductions to minimum wages, pensions, and welfare payments
Cuts to investments and public consumption
Local administration reforms
Increased value-added tax (VAT)
Increases in specific fuel, tobacco, and alcohol taxes
Special levies on corporate profits
Increased taxes on real estate
Privatization of state assets

These measures weakened the capacity of the system to address social risks such as unemployment, inequality, and poverty while exacerbating structural problems in the healthcare system.

Lessons Learned: Protecting Infant Health in Economic Downturns

The Greek experience serves as a stark reminder of the importance of safeguarding public health, especially for infants, during economic crises. While austerity measures may be necessary to stabilize economies, policymakers must carefully consider their potential impact on vulnerable populations. Continuous investment in public health systems and preventive care is crucial to preserving low mortality rates and ensuring sustainable human development. Furthermore, mitigating the social risks associated with economic downturns, such as unemployment and poverty, can help buffer the negative effects on infant health.

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This article is based on research published under:

DOI-LINK: https://doi.org/10.48550/arXiv.2407.17084,

Title: Effect Of Austerity Measures On Infant Mortality: Evidence From Greece

Subject: econ.gn q-fin.ec stat.ap

Authors: Robert J. Kolesar, Rok Spruk

Published: 24-07-2024

Everything You Need To Know

What were the primary austerity measures implemented in Greece between 2010 and 2017?

The austerity measures in Greece included several key actions aimed at reducing budget deficits. These measures included salary cuts and layoffs among public employees, reductions to minimum wages, pensions, and welfare payments, and cuts to investments and public consumption. Additionally, the government implemented local administration reforms, increased the value-added tax (VAT), and raised specific taxes on fuel, tobacco, and alcohol. Special levies on corporate profits and increased taxes on real estate were also part of the austerity package, along with the privatization of state assets. These policies aimed to stabilize the economy by reducing government spending and increasing revenue.

How did the austerity measures in Greece impact infant mortality rates, and what was the extent of the increase?

The austerity measures in Greece had a devastating impact on infant mortality rates. The study showed a clear and significant increase in infant mortality following the implementation of these policies. Compared to a synthetic control group, the austerity measures were associated with a tragic rise in infant deaths. The cumulative infant mortality cost of these policies is estimated to exceed 10,000 infant deaths, with nearly 850 deaths for each year the austerity policies were in effect. This represents a significant reversal of the previously positive trends in infant health that Greece had enjoyed before the economic crisis.

Who or what entity mandated the austerity measures in Greece, and what was their stated goal?

The austerity measures in Greece were mandated by the Troika, which comprised the European Commission, the European Central Bank, and the International Monetary Fund. Their stated goal was to stabilize the Greek economy by reducing budget deficits. This was achieved through a combination of spending cuts and increased taxes, which were intended to address the country's economic turmoil and debt.

What specific elements of the healthcare system were affected by the austerity measures, and how did this contribute to increased infant mortality?

The austerity measures weakened the capacity of the healthcare system to address social risks, such as unemployment, inequality, and poverty, while exacerbating existing structural problems. This weakening had several impacts. Firstly, cuts in public spending likely reduced the resources available for healthcare services, including prenatal care, neonatal care, and other essential services for infants. Secondly, reduced wages and increased unemployment among public sector employees may have led to staff shortages and decreased morale within the healthcare system, affecting the quality of care. Thirdly, increased poverty and inequality due to welfare cuts and reduced wages can have a direct impact on infant health. Families struggling financially may have difficulty providing adequate nutrition, healthcare, and a safe environment for their infants. All these factors combined to increase infant mortality rates.

What lessons can be learned from the Greek experience to protect infant health during economic downturns, and what actions could have been taken?

The Greek experience highlights the critical importance of safeguarding public health during economic crises. Continuous investment in public health systems and preventive care is crucial to preserving low mortality rates. Policymakers should carefully consider the potential impact on vulnerable populations before implementing austerity measures. Mitigating the social risks associated with economic downturns, such as unemployment and poverty, can help buffer the negative effects on infant health. This could involve targeted social safety nets, unemployment benefits, and programs to address poverty and inequality. Protecting healthcare funding and ensuring access to essential services, like prenatal and neonatal care, are also vital. By prioritizing public health and social support, governments can mitigate the negative consequences of economic crises on the most vulnerable members of society, particularly infants.