Greek Cricies

8/6/2019 Greek Cricies

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WELCOMEWELCOMEGREEK CRISISGREEK CRISIS

presented bypresented by:: FaizFaiz ahmadahmad

Sachin kumarSwaroopSwaroop

Bibin


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GREEK ECONOMY: anGREEK ECONOMY: anintroductonintroducton

twenty-seventh largesteconomy intheworld.

The thirty-third

largest by purchasing powerparity.

GDP per capita isthe 25th

highest intheworld,GDP PPP per capita is also

the 25th.

Greeceis a member of


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ContContThe Greekeconomyis

a developed economy withthe22nd higheststandardof living intheworld.

Thepublicsector accounts

for about 40% of GDP.The servicesector

contributes 75.8% ofthetotal GDP, industry 20.8%

and agriculture 3.4%. Greeceisthetwenty-fourth

most globalized country intheworld and isclassifiedas a highincomeeconomy.


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SomeimportantbusinessstatisticsStatistics

GDP $343 billion (nominal, 2008 est.) 339.2 billion (PPP, 2008 est.)

GDP growth 2.0% (2009)

GDP per capita $32,100 (nominal 2008 est.); $30,856 (PPP 2009 est.)

GDP by sector agriculture: 3.4%;industry: 20.8%;services: 75.8% (2009 est.)

Inflation (CPI) 1% (2009 est.)

Population

below poverty line

< 2.0% (2009)

Gini index 33 (2005)

Labour force 5.01million (2009 est.)Labour force

by occupation

agriculture: 12.4%;industry: 22.4%;services: 65.1% (2005 est.)

Unemployment 9.8% (October 2009)[

Main industries tourism;shipping; Industrialproducts, foodandtobacco

processing,textiles;chemicals,metalproducts;mining,petroleum


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Exports $18.64 billion (2009 est.)

Export goods food and beverages, manufactured goods,

petroleum products, chemicals, textiles

Main export partners Italy 11.5%, Germany 10.5%, Bulgaria 7.1%,

Cyprus 6.2%, US 5%, UK 4.7%, Romania 4.4%(2008)

Imports $61.47 billion (2009 est.)

Import goods machinery, transport equipment, fuels,

chemicalsMain import partners Germany 12.1%, Italy 11.7%, Russia 7.4%,

China 5.6%, France 5.1%, Netherlands 4.7%

(2008)

Gross external debt $552.8 billion (30 June 2009)


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Public finances

Public debt $405.7 billion (125% of

GDP)Revenues $108.7 billion (2009 est.)

Expenses $145.2 billion (2009 est.)

Foreign reserves $3.473 billion (31

December 2008 est.)


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GREEK CRISISGREEK CRISIS

TThehesituationin Greeceissituationin Greeceissimilar towhathappened insimilar towhathappened inthethe U.SU.S which led tothewhich led tothemeltdownmeltdowninin2008 that2008 thatrequired the "toobig tofail"required the "toobig tofail"bailout.bailout. Therewas a wholeTherewas a wholelotofshortlotofshort--term lendingterm lending((think:subprime loansthink:subprime loans)that)thatdidn'ttakeinto accountthedidn'ttakeinto accountthelonglong--termfinancial risk andtermfinancial risk andconsequences.consequences. ThoseThoseconsequencesfinallycameconsequencesfinallycameto a head in Greeceintheto a head in Greeceintherecentpast.recentpast.


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WhyisGreeceinsuchamessWhyisGreeceinsuchamess??

For years, Greece has beenFor years, Greece has beenspending money it doesn'tspending money it doesn'thave.have.

The government there tookThe government there took

advantage of the economicadvantage of the economicgoodgood--times to borrow moneytimes to borrow moneyand spend it on payand spend it on pay--rises forrises forpublic workers and projectspublic workers and projectssuch as the 2004 Olympics.such as the 2004 Olympics.

It began to runIt began to run--up a biggerup a biggerand bigger deficit (the gapand bigger deficit (the gapbetween how much a countrybetween how much a countrybringsbrings--in from tax, and whatin from tax, and whatit spends).it spends).


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Cont.. Greece enjoyed high public spending during the boom years,

including an expensive Olympics. Banks started to view it as a country that might not be able

to manage its money.

They worried Greece might eventually fail to pay its loans,and even go bankrupt.

To cover the risk, banks started charging Greece more toborrow cash-that made the problem worse.

Eventually the government there went looking for help.

It is now borrowing 110 billion euros (95bn) from other EUcountries and the International Monetary Fund.

That money is being loaned at a much better rate, butcomes with tough conditions.

Greece has to promise to cut its budget deficit.

It's those cuts that have led to the riots in Athens.


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Greek crisis and effects on other countriesGreek crisis and effects on other countries

As well as Greece, banks and credit ratingagencies are going through their books looking forother bad risks.

That means countries that have a big budget

deficit, compared with how much money theireconomy generates.

The crisis in Greece is being felt in financialmarkets around the worls

Portugal and Spain are reckoned to be two thatcould face problems next.


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ContCont The EU hopes that its bailout will reassure the moneyThe EU hopes that its bailout will reassure the money

markets that their cash is safe.markets that their cash is safe.

However, that depends on Greece getting control of theHowever, that depends on Greece getting control of thesituation and proving it can make the cuts needed.situation and proving it can make the cuts needed. The UK does not use the Euro currency, but could still beThe UK does not use the Euro currency, but could still be

affected.affected. Its budget deficit is also large, and UK started to appearIts budget deficit is also large, and UK started to appear

unattractive to lenders.unattractive to lenders.

UK banks also hold some of the debt of countries such asUK banks also hold some of the debt of countries such asGreece, Spain, and Portugal.Greece, Spain, and Portugal.

If they were to go bankrupt, it would mean more problemsIf they were to go bankrupt, it would mean more problemsfor Britain's banks.for Britain's banks.

In the meanIn the mean--time, there is some good news fortime, there is some good news for

holidaymakers.holidaymakers. A fall in the value of the Euro means the pound currentlyA fall in the value of the Euro means the pound currentlygoes a bit further at the bureau de change.goes a bit further at the bureau de change.


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THANK

YOU

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Greek Cricies