Tragedy of Greece – Could it be any worse?


  • In 2011, Greek Manufacturing output fell 15.5%
  • Unemployment currently stands at 20.9%
  • Greek youth unemployment stands at 48% – surpassing even Spain’s youth unemployment
  • Government debt burden stands at 160% of GDP. Despite all the austerity measures, the Greek budget deficit has not fallen because the economy is shrinking so quickly.
  • On top of this collapsing economy, Greece is under pressure to pursue a raft of further spending cuts, pension reforms and public sector job losses. It’s a vicious cycle without an end.
  • VAT revenue fell 18% in 2011. Simply because 60,000 business and small business have gone bankrupt since the summer.

Current Account Imbalances remain

Despite wage cuts, e.g. 20% cut in Minimum wage, Greece remains fundamentally uncompetitive and is unable to reduce its current account deficit.

Would leaving the Euro really be so bad for Greece?


3 thoughts on “Tragedy of Greece – Could it be any worse?”

  1. Great and informative post indeed ! Keep up your good work man !
    Greece should be allowed to leave the Euro and default, before the high-debt European countries demand billions more cash.


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