GREECE: A FAILING

ECONOMY.

INTRODUCTION

Greece is a country located in Southern Europe

The government system is a parliamentary republic

Current president of Greece is Prokopis Pavlopoulos .

Alexis Tsipras is the prime minister of Greece.

Greece had a current GDP of $238 billion per annum.

Greececonomy based on the service sector (81%) and industry (16%).

Agriculture contributed 3.4%

BACKGROUND TO GREECE

DEBT CRISES

From the mid-1990s, Greece was constantly spending more than it was

collecting tax.

This led to deficit due to which Greece started borrowing from its

neighbors.

This has led to severe economic crisis in Greece.

Greece faced a collapse in economic growth, high rate of

unemployment and instability in the country’s banking system.

Greece also has very high level of corruption and an inflated public

sector.

CAUSES OF GREEK’S DEBT

CRISES

POLITICAL FACTOR

1. Foreign relations with Turkey and the terrorist activities within the

country have also given rise to political unrest.

2. All the governments have publicly criticized corruption and nepotism

leading to adverse situation in Greece.

3. The Berlin-based watchdog Transparency International represents

Greece's ranking in terms of corruption fell from 62 to 80 in 2007, but

Greece in 2008 securing the 78th rank.

CAUSES OF GREEK’S DEBT

CRISES

ECONOMIC FACTOR

1. Poor government budgets and poor competitiveness of

the Greek economy increased the deficits at a high rate.

2. Exports also became increasingly uncompetitive.

3. Tourism has faced low profitability due to increasing

labor costs and poor labor quality.

CAUSES OF GREEK’S DEBT

CRISES

International Banking Crises (2008)

1. European Commission estimated in 2006 that 30% of Greek taxes – or

3.4% of the Greek GDP – were unpaid.

2. International credit crisis spread(2008-2009) and Greece was recorded of

low reform capacity and economic weaknesses.

3. Greek government subsequently became incapable of paying back their

debts which led to reduction in price of Greek’s bonds .

4. Greek government acted irresponsibly with its fiscal policy and debt

accumulation leading to economic weaknesses.

GREECE’S DOWNFALL:

2000- 2008

Due to high debt burden - (214% of GDP in 2008) with public

debt (111% of GDP) and consumer lending (15% of GDP) the

highest in Europe.

The large public and private sector spending between 2000 and

2008 (97% of the cumulative GDP growth was driven by

consumption) created a deteriorating trade balance.

“ ( T H E E U R O Z O N E ) R E S E M B L E S A F I N E R I V E R B O A T T H A T

W A S L A U N C H E D O N A S T I L L O C E A N I N 2 0 0 0 . A N D T H E N T H E

F I R S T S T O R M T H A T H I T I T , I N 2 0 0 8 , S T A R T E D C R E A T I N G

S E R I O U S S T R U C T U R A L P R O B L E M S F O R I T . W E S T A R T E D

L E A K I N G W A T E R . A N D O F C O U R S E , T H E P E O P L E I N T H E

T H I R D C L A S S , A S I N T H E T I T A N I C , S T A R T F E E L I N G T H E

D R O W N I N G E F F E C T S F I R S T, ” –

YA N I S VA RO U FA K I S S A I D I N A N

I N T E RV I E W W I T H C H A N N E L 4 N E W S.

GREECE’S DOWNFALL:

2000- 2008

The exports of Greece never pay for its import.

The government spending increased by 6.5% from 2000-2009 to

keep up with the expenses by increasing public employees salary and

pension.

Greek government income also reduced by 5% of GDP.

GREEK DEBT CRISES: 2010

In May 2010, the European Union and IMF approved a 110

billion euro loan package to the Greek government in return for

promises of spending cuts to sharply reduce the Greek public deficit.

In spite of this rescue package and another, 130 billion euro,

package put together between July 2011 and March 2012, the debt

crisis in Greece continues into 2012.

GREEK DEBT CRISES:

TODAY

"The crisis afflicting some years now our place was marked by a highly tragic dimension.

The increase in suicides. Those that are least known, since experts believe that their number

always is considerably higher". – Kathimerini

1. Unemployment: The unemployment rate had fluctuated around the 10% mark

in the first half of the previous decade.

2. Unemployment figures reached their lowest level for over a decade which has

been 6.6% of the labor force only.

3. Long-term unemployment increased even faster to 889,000 workers or 18% of

the labor force in the first quarter of 2013.

GREEK DEBT CRISES:

TODAY

RELATIVE POVERTY:

1. Relative poverty in Greece rose from 20.0% in 2009 to 21.3% in 2012.

2. National incomes in Greece have also fallen from €570 per month in

2009 to €622 per month in 2012.

3. Anchored poverty has risen from 20.0% in 2009 to 37.0% in 2012.

CONCLUSION

INTRODUCTION

ECONOMIC SECTORS OF BRAZILIAN

ECONOMY

INDUSTRY

ECONOMIC SECTOR

THE STATE OF SAO PAULO

SUGARCANE INDUSTRY

SUGARCANE ETHANOL

FUTURE OF ETHANOL

Conclusion