Final Greece

7/25/2019 Final Greece

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GREECE CRISIS AND ITS IMPACT

SUBMITTED TO:

Prof: Megha Shah

SUBMITTED BY:

Jeet Doshi NR 14026Parth Jani NR 14048

Krishna Kanzariya NR 14053

isha! Pan"ha! NR 14088

#an$r%ti Sangha&i NR 14130

'e(i! Sath&ara NR 14133

'i(ani Shah NR 14138


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CONTENTS

Introduction to Greece economyReasons for Greece crisis

Impact of US su prime crisis on

GreeceImpact on ma!or European economics

Impact on india

Current ne"sConc#usion


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Introduction of Greece economy

Popu#ation $ %%&'( Mi##ion

Capita# $ At)ens

Ma!or #an*ua*e$ Gree+

Ma!or re#i*ion $ Mus#ims, Cat)o#ic and-e"is)

Monetary unit $ Euro

GNI per capita $ ./,0'' PPPIn1ation rate $ %2

Unemp#oyment rate$ ./&32


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Introduction of Greece economy

.0t)#ar*est GDP in t)e "or#d

A*ricu#ture

Industry

Ser4ice

..nd)i*)est )uman de4e#opment

Greece main usiness is tourism, minin*,petro#eum, c)emica#s, food processin*,te5ti#es, meta# products, Toacco processin*


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678 IS GREECE INTROU9:EGreece reported ud*et de;cit a4era*e /2

per year compared to euro


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6)y is Greece in trou#e

T)e Gree+ economy ecome emroi#ed in a)u*e det crisis in t)e after mat) of t)e *#oa#;nancia# *#oa# crisis from .''0 on"ards

As a direct conseBuences of *#oa# ;nancia#

crisisMost of Greece main tradin* partners "ent into

a a deep recession cuttin* e5port

T)ere "as .2 fa## in "or#d output ut "orse,%.2 fa## in *#oa# trade

Greece suered ad#y ecause of )er economy"as )ea4i#y dependent on tourism andconstruction, t"o sector ad#y )it y t)e s)arpfa## in demand and production


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6)y is Greece in trou#e

Greece current economic pro#em )a4e eencaused y a mi5ed of domestic andinternationa# factor

Greece is facin* so4erei*n det crisis since its

accumu#ated )i*) #e4e#s of det durin* t)edecade efore t)e ;nancia# crisis ")en t)emar+et "as )i*)#y #iBuid

Reasons

7i*) *o4t& spendin* and "ee+ *o4t& re4enues

Structura# po#icies > dec#inin* internationa#competiti4eness

Increased access to capita# at #o" interest rate


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COUTRY STRUCTURAL PROBLEM

)ree"e is fa"ing so&ereign *e+t "risis sin"e it a""%(%!ate* high!e&e! of *e+t *%ring the *e"a*e +efore the finan"ia! "risis ,hen

the (ar$et ,as high!y !i-%i*. /s the "risis got *eeene* there

,as a !i-%i*ity "r%n"h in ,or!* e"ono(y there+y (a$ing

+orro,ings *iffi"%!t as ,e!! as eensi&e an* there+y i(roer

*e+t reay(ents on ti(e.

ensi&e een*it%re

Mis(anage(ent

nreg%!ate* !a+or (ar$et

+so!ete ension syste(


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10/21


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Unemp#oyment rateincrease


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7ostin* t)e .''O#ympicsMany factors e)ind cripp#in*

det crisis t)e .'' summer,

O#ympics in At)ens )a4e dra"n

particu#ar attentionT)e .'' At)ens O#ympics

cost near#y (/F i##ion

T)e ta for security a#one

"as more t)an %&.F i##ion

Initia# proposed ud*et "as

%&3F i##ion


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Impact on Euro


15/21

Impact on US

U&S e5port to t)e EU cou#d e impacted if t)ecrisis s#o" *ro"t) in t)e E&U and t)e causesto euro to depreciated a*ainst t)e do##ar

As t)e crisis continues, increased perception

of ris+ are impactin* U&S ;nancia# mar+etCDT DO6 dropped more t)an ==. points

T)e panic in Greece caused one of t)e mostturu#ent days e4er on "a## street, in a

matter of minutes, stoc+ p#un*ed ='' pointsT)e DO6 mana*ed to reco4er ut sti## ended

in ne*ati4e territory, T)e DO6 c#osed do"n(0 points


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Impact of Greece crisis in India

TradeMar+ets

:iBuidity situation

Rupee 4a#ue

9orro"in*s


17/21

Impact on India

Gree+ import from India inc#ude cotton,synt)etic ;er, farics, iron, stee# > fruits&

Gree+ e5port to India inc#ude ;ers, ferti#i


18/21

Current Ne"s

Protester )a4e ro+en out for a austeritypac+a*e current#y under deate inpar#iament t)at inc#ude a#most F' i##ionin spendin* cuts and ta5es increases

Germany can do a## it ta+e to reui#d t)econ;dence in det stric+en Greece

G.' #eaders )a4e come up "it) a p#an toprotect t)e an+in* system a*ainst crisisy recapita#i


19/21

9ot) rance and German aretryin* to sa4e Greece and "ou#d*o for an+rupt if t)ere "ere a

sudden defau#tGreece ;nance minister )as to#d

to reso#4e t)e det crisis t)ere

"i## e /'pc )aircut for 9an+)o#ders

US is puttin* pressure on EU for

sa4in* Greece, ot)er"ise it


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CONC:USION

As "e discussed due to pu#ic e5penditure and o4erorro"ed& No" Greece is in 4er*e of defau#t&

No" Greece *o4ernment is ta+in* ti*)t austeritymeasures to rin* do"n ud*et de;cit to '&=2 of GDPy .'%/& ut due to e5cessi4e e5penditure cut >unemp#oyment t)e disposa# income of pu#ic "i## ereduced&

T)e EU, IM > EC9 #endin* to Greece to so#4e t)e

under#yin* pro#em, ut t)e ma5imum money is spentfor repayment of det not for producti4e use

T)ou*) t)ey are pumpin* money in Greece t)ou*)tt)ey are not sure aout t)at future of Greece economy

No" t)e condition is in di#emma ")et)er to sa4e


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T7ANH 8OU

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