- 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?