Greece Financial Crisis In Greece - 1114 Words

According to Cia.com, Greece has a capitalist economy with a public sector, representing about 40% of GDP and with per capita GDP about two-thirds that of the leading euro-zone economies. Tourism provides 18% of GDP. However, immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP. According to the CIA’s studies, the Greek economic system averaged increase of approximately 4% in step with year between 2003 and 2007, however the financial system went into recession in 2009 due to the world financial crisis, tightening credit conditions, and Greece inability to address a developing budget deficit. By 2013, the financial†¦show more content†¦According to the World Fact Book, in 2016, even though the public debt of the country is still 179.4% of Greece’s GDP, Greece saw slight improvements in GDP and unemployment. The economy remains stagnant, because of unfinished economic reforms, a massive non-performing loan problem, and ongoing uncertainty regarding the political direction of the country. As state by the Central Intelligence Agency, during the year 2014, 2015, 2016, the Hellenic Republic had a GDP real growth rate of 0.4%, -0,2%, 0% respectively. This is a major of issue for the Greek’s government, the real growth rate of the GDP in 2016 was 0%. The country is listed 191 out of 224 countries in GDP real growth rate by the World Fact Book. While the GDP per capita during the year 2014, 2015, 2016 was $26,500, $26,600, 2$6,800 respectively. People make all most half of what they can in the United State of America. Each person makes at least $57,000. The gross domestic product of the Hellenic Republic is composed of three sector. The agriculture sector, which generate only 4% of the GDP. The industry which generates 15.8% of the GDP and the services sector which generate 80.2% of the Greece in 2016. The agricultural sector of the country is an issue, as the citizens do not produced a lot of product. They produced wheat, corn, barley, sugar beets, olives,Show MoreRelatedThe Financial Crisis Of Greece2156 Words   |  9 Pagesexacerbating the problem. When Greece saw the possibility of joining the European Union in 1981, lack of transparency and misreported figures in its bookkeeping system allowed the country to meet the criteria and become a new member of the Eurozone. As investors were confident on the stability of the Euro, Greece was able to borrow cheaply from the European financial markets and sustain an expansionary policy between 2001 and 2007. Nonetheless, the outburst of global financial crisis coupled with prolongedRead MoreThe Financial Crisis Of Greece929 Words   |  4 Pages Over the 15 years the German has been widely viewed as the economic catalyst and stabilizer for its fellow European Union states. Even following the Financial Crisis in 2008, the German economy was able to bounce back quicker than neighboring Eurozone states the source of German success points to a high export led growth economy with a competitive manufacturing sector, lower unemployment, balanced budget, and low costs to borrow. With most economic indicators pointing to strong future growth, itRead MoreThe Financial Crisis Of Greece And Portugal1624 Words   |  7 PagesBrothers collapsed at the height of the financial crisis. Investors all over the world were shocked and creditors were equally horrified. Greece, the founder of true democracy, the originator of the olympics and the birthplace of geometry - was now $430 billion in debt. Never b efore had a country such as Greece imploded with such velocity and magnitude - that its government bond contracts were now considered toxic. It was an exact replay of the financial crisis, except that the insolvent borrower wasRead MoreGreeces Financial Crisis : Greece1796 Words   |  8 PagesGreece’s financial crisis has been in existence for almost two decades, and unfortunately is still widely unknown what has caused this prolonged catastrophe. The general population does not necessarily know that this economic crisis originates to a mistake made years ago, not due to the recession in 2008 that an abundance of countries around the world suffered. Greece intended to join the Eurozone, a group of European Union nations whose currency is the euro, in 1999. Initially, Greece was deniedRead MoreGreece : Greek Financial Crisis1838 Words   |  8 PagesOn January 1st 1981 Greece joined the European Communities ushering in a period of sustained growth. The countries widespread investments on infrastructure coupled with funds from the European Union led to a sharp increase in revenue from tourism and the service sector. This helped the country reach historical highs in their standard of living. By 2001 Greece had adopted the Euro and in the proceeding 7 years the GDP per capita went from $12,400 in 2001 to $31,700 in 2008, an increase of 156%.Read MoreThe Impact of the Global Financial Crisis on Greece Turkey2832 Words   |  12 PagesBackground—Greece Greece has a history which really distinguishes its nation from the rest. In 1829, Greece achieved independence from the Ottoman Empire. During the second half of the nineteenth century and the first half of the twentieth century, it gradually added neighboring islands and territories, most with Greek-speaking populations. Following Germany’s defeat in World War II in 1949, Greece joined NATO in 1952. In 1981, Greece joined the EC, which is now the EU, and it became the twelfthRead MoreCauses of the Greek liquidity crisis; how conditions were before the crisis Events that happened1600 Words   |  7 Pagesliquidity crisis; how conditions were before the crisis Events that happened preceding the crisis The structural economic support weakened –when Greece entered the euro zone in 2001 the convergence criteria which supposed to provide sound financial systems within the economy and the GSP were established to prevent financial and economic crises. Greece enteredRead MoreGreece Economic Crisis Analysis986 Words   |  4 PagesWall street financial market in 2008, Greece become the center of Europe’s economic crisis. With employment rates more than 25 percent, Greece is suffering from a financial crisis equivalent to if not greater than the U.S. Great Depression. The source of the crisis originated in the inefficient management of the Greece’s economy and government finances. Additionally, Greece’s involvement in the euro zone reflected a monetary policy that was at odds with its fiscal policy. The crisis resulted in troikaRead MoreThe European Central Bank ( Ecb )1277 Words   |  6 PagesGreece is a member of the Eurosystem, a collection of 19 European countries. Together, the Eurosystem is the third largest economic system in the world, falling just behind the United States and China (https://www.ecb.europa.eu/mopo/eaec/html/index.en.html). The European Central Bank (ECB) acts as the head of the Eurosystem, providing the citizens of 19 European nations with a single currency (ECB WEBSITE). The area that is within the jurisdiction of the ECB is collectively known as the EurozoneRead MoreGreece : A Developed Country Of Europe Essay1720 Words   |  7 PagesGreece officially named as the Hellenic Republic situated in the southeastern Europe is the 45th largest region with a nominal gross domestic product (GDP) of $235.6 billion per annum (World Bank,2014). Greece is a developed country of Europe. The economy of Greece is based on the service (82.8%) which is the prerequisite of being developed country, and on industrial sector with 13.3% of contribution in GDP and agricultural sector of Greece contributed 3.9% of national economic output in 2015(CIA