How Did Greece Get Here?

Greece has been struggling hard to qualify needed to be a member in the Eurozone. Moreover, following the 2008 financial crisis in america, Greece’s economy got smaller sized by 25% since 2009. Indonesia, France, Italy and The country are the most important economies accounting for 29 percent, 21 percent, 16 percent and Eleven percent of the Union’s GDP, respectively. The current economic crisis impacting some of the Eurozone peripheral countries is actually raising doubts over the euro’utes future and it is the major hurdle to its growth.

Ten Facts about Greece

1. Greece joined the Eurozone in 2001 and was Eurozone’s Twelfth member.

2. Greece was the very first country in need a bailout in 2010 in the Eurozone.

3. Greece is the only Euro country with updated debt.

4. Greece got a 3rd bailout with the total due debt in 2015 accounting for roughly 173% of their GDP.

5. Greece’s prime minister reconciled calling for fresh elections in Sept.

6. Greece had one of the cheapest ratings among the 18 EMU people when it joined the forex union (2001).

7. While Portugal and Ireland have repaid the debts, Greece continues to look for more bailouts.

8. Greece has raised doubts of a to be the first member country to exit Eurozone (dubbed as a Grexit through media).

9. Greece has to date using bailout packages to repay current debt rather than rebuilding its falling economy.

10. Greece received the highest number of upgrades in between January 1998-December 2008.

Greece’s Unique circumstances Described through 5 Graphs

1. Greece’s Individual GDP Per Household PPP after It Officially Entered the Eurozone In 2001

As Greece entered the Eurozone, doubts about its economy started doing the actual rounds. The GDP for each capita PPP is the country’s gross domestic product, adjusted by purchasing power parity, divided by the total population. It captures the individual performance of Greece as compared to the entire Eurozone since its inclusion in 2001.

Source: Tradingeconomics.com| World Bank 2015

What the Graph Tells Us

* The GDP per Capita, in Greece, when adjusted by Purchasing Power Parity is equivalent to 138% of the world's average. GDP per household PPP in Greece was highest by around 2007-08.

* Gradually, the GDP per Capita PPP deteriorated with time. Entire Eurozone saw greatest GDP around the same period as Greece. Except 2010, Greece and Eurozone were reacting differently in performance.

* The GDP per Capita, within the Euro Area, when modified by Purchasing Power Parity is 208% of the world's average.

* GDP per capita PPP in the Dinar Area was an all-time high in 2008 and lowest within 1990.

2. Greece GDP Rate of growth Vs Eurozone GDP Growth Rate

Greece includes a service-based economy and is one of the top tourist destinations in the world. Following the admission to Eurozone in 2001, the Greek economy had been recording higher rates of growth. However, this expansion had been powered by access to cheap credit and growth of public sector and so in 2008 the budget debt and sovereign debt had reached unsustainable levels. As a result, Greece faces the worst crisis since 1974 and tough changes enforced by the IMF and the Western Commission as part of the bailout programme takes place.

Source: Tradingeconomics.com| 2015

What the Chart Tells Us

* Greece and Eurozone have not matched much in performance owed to complete contrasting performance in 2010-2012.

* The Eurozone economy sophisticated only 0.3 percent in the second quarter of 2015, with German, Italian and Nederlander expansion missed expectations while France stagnated.

* The GDP growth for region's biggest economies missed economists' expectations. Separately, Germany grew by 0.4 percent, against expectations of 0.5 percent growth. The Italian economy expanded by Zero.2 percent; lower than the forecasts. The Dutch economic climate grew by 0.1 percent and France recorded absolutely no growth. Only Spanish economy advanced 1 percent, the fastest pace in more than eight many years.

3. Unemployment Rate in A holiday in greece as compared to the Eurozone

Unemployment rate in Greece has always been a problem ever since it’s economic problems started. It remains high even though it decreased to 25% percent in May 2015 from 25.58 % in April of 2015.

Source: Tradingeconomics.com| 2015

What the Graph Tells Us

* Greece Unemployment Rate reached an all-time high of 27.91 percent in 2013 and lowest was in May of 08.

* Unemployment Rate in the Eurozone remained unchanged at 11.10 % in June from Might of 2015.

* Unemployment Rate within the Euro Area reached highest in 2013 and a cheapest in 2008.

4. Government Debt to GDP

Generally, investors use Federal government debt as a percent associated with GDP to measure a nations ability to make future payments on its debt.  , thus affecting the country borrowing costs and government bond yields. Greece is of the opinion that much of the matters in A holiday in greece got worse due to the rigid austerity measures imposed by it’s creditors.

An article in the New York Times reports that Mister. Tsipras had blamed the austerity for creating a “humanitarian crisis” in A holiday in greece. While Germany blames Greece for failing to use financial overhauls to restart its economic climate, the IMF has called Greece’s debt “unsustainable”. Even though much of the actual rescue support is coming from Germany, since it is by far the strongest in the Eurozone, it surely has benefitted in certain sections after the formation of the Eurozone. Recently, the actual shifting politics in Indonesia shows that even though 454 German MPs possess approved of the Greek bailout, 113 had been against it while Eighteen abstained. Some part of Germany appears a bit hesitant about the third bailout and does not approve of giving extra support to Greece. The actual €86 billion bailout plan is Greece’s third bailout in the last five years with Spain, Estonia and Austria granting the bailout package.

Source: Tradingeconomics.com| World Bank 2015

What the Graph Informs Us

* Greece recorded a Government Debt to GDP associated with 177.10 percent of the country's Gross domestic product in 2014. Government Debt in order to GDP in Greece what food was in its peak in 2014 as well as was lowest in 1980, much before it joined the Eurozone.

* Eurozone recorded a Government Financial debt to GDP of 91.90 percent of the country's Gdp in 2014.

5. Germany Unemployment went down while Greece saw a significant increase since 2001

According to Bloomberg, Greek unemployment has doubled since it joined the Eurozone, while Indonesia halved its unemployment price.

Source: Tradingeconomics.com| 2015

What the Graph Informs Us

* Even the problem of unemployment, even though stable, remains unaddressed by Greece.

* When Greece joined, it had unemployment of roughly 4.7%, but following its inclusion in the Eurozone, the actual unemployment rate started growing.

* Greece and Germany have been receiving different side of the wall when it comes to unemployment rate.

* Whilst Greece has seen its joblessness increasing, Germany has seen joblessness getting lesser over time, approximately from the time Greece joined the actual Eurozone.

* Currently, Germany has Four.70% in May 2015; Greece has a disastrous rate of 25% (meaning 1/4th of its population remains unemployed) in 2015.

Final Word

Greece needs to fix its own economy now, irrespective whether or not this wants to be in the Eurozone or not. High unemployment rate, insufficient available jobs, weak banking system, high debt amounts, political instability etc. has been a problem in Greece but its time they fixed it. A holiday in greece has not set a right example for many countries that remain indebted but instead has paved the way for others to hold talks for repayment of financial obligations on a discount. As John Humphrys puts it “Whatever the long term may hold for them, this can’t be worse than what has happened in the past.”

Ten Facts about Greece and its Economic Problems through 5 Graphs is actually republished with permission from The Financial Keyhole