Tragedy of Greece – Could it be Any Worse?

greece

  • 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?

Related

By on February 10th, 2012

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.

Leave a Reply

Your email address will not be published. Required fields are marked *