Transcript greek/ world economic - E

Δήμητρα Παππά 2494 Group Leader
Μαρία Αποστόλου 2339
Χριστίνα Νάκα 2475
Παναγιώτα Χριστοδούλου 2562 Κ.
Εισηγήτρια: Θεοδώρα Τσελίγκα
SECTIONS:
Introduction
2. Greek economic crisis
2.1. Greek/ World economic crisis
2.2 Impacts of Greek economic crisis
3. Greek crisis and public sector
3.1 The public sector in Greek economy (significance)
3.2 Impacts of crisis in public sector
4. Future Prospects
5. Conclusion
1.
1. Introduction
The financial crisis that erupted in the United States
in September 2008 “hit” crucial the economies of
many countries around the world. Each country has
experienced or still experiencing the financial crisis
differently depending on the structure of the
economies. Soon the financial crisis transformed into
an economic crisis when banks in their effort to
maintain their capital adequacy restricted the credits
to businesses and households.
2. Greek economic crisis
 The international financial crisis struck soon the
Greek economy and Greece fled to the IMF, the ECB
and the EU in order to avoid any problems relating on
wages which would have uncontrolled consequences
for the entire euro zone.
2.1 Greek economic crisis
 Regarding the Public debt the period after 1974 was a
large lending period for Greece that led the debt to its
swelling.
Decades
1970-1979
1980-1989
1990-1999
2000-2009
Consumption
as % of GDP
77,2
85,1
90,1
88,8
Investments
as % of GDP
30,7
23
20,6
22,6
2.2 Greek economic crisis
 Additionally the external debt of Greece was 82,5% of
GDP in 2009.The negative trade balance means that
Greece imported more than it exported.
Decades
1990-1999
2000-2009
Trade balance as % of
GDP.
-10,7
-11,4
2.1 Greek/World economic crisis
 The global economic downturn of 2008 is the effect
caused by the international financial crisis of 2007.The
international financial crisis caused by the lack of
liquidity became apparent in the Stock market indexes
all around the world with dramatic effects on the
banking system , trading and businesses.
 On October,24,2008 there were losses $3,2 trillion in
Eurasia. Especially , in Greece there were losses 24
billion Euros in the second half of 2008.The Athens
general stock market index fell below 1800 points.
2.2 Impacts of Greek economic
crisis
 Liquidity problems in banks ,companies
 Reduction of turnover
 High rate of unemployment
 Reduction in production in national income etc
 Bankruptcy
 Low public revenues
 High debt levels
 High deficits
3.Greek crisis and public sector
 The public sector of Greece consists of various public
entities which are responsible for the governance of the
state, to serve and protection of citizens and the
conduct of fiscal policy in Greek economy.
 The Greek economy for several decades was rising.
From 1950 until 1970,the development named as the
Greek economic miracle.
3.Greek crisis and public sector
 The economy sank into deep and sharp recession in
2008 due to the global economic crisis struck the euro
zone and Greece as a member state.
 Finally, there are still hopes for quick recovery in Greek
economy.
3.Greek crisis and public sector
3.Greek crisis and public sector
General government gross dept - annual data (percentage of
GDP)
300
250
200
150
Greece
100
EU (27 countries)
50
0
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
3.1 The public sector in Greek
economy
 Since crisis expanded in Greece the wages of many public
employees have decreased in half.
 At the same time , other public employees have been fired
the last period because government can not ensure them
salaries of a satisfactory.
3.2.1 Impacts of Greek crisis in public sector
Moreover , from 2009 and after the budget is deficit
. Thus , the public expenditures have been reduced
and the taxes have been increased to the public.
Also , government borrows from external banks but
that money are abused from public officers.
In the end government is selling off public
property.
3.2 Future prospects
The deficit in 2009 as a percentage of GDP is 15,9 , in
2013 drops to 5,5 and today is about 4,6 so it is obvious
that there is a reduction during these periods.
Moreover government can manage to balance the
budget ,create primary balance and remained in euro.
Conclusion
The economic policies of the last three decades have
brought Greece to the brink of bankruptcy . Thus
Greece is characterized by inefficient public sector and
low competitiveness . However the positive point is that
there are bands for furthermore development and
progress . So Greece can manage to overcome the crisis ,
to consolidate the public sector and get out again on
international markets if there is a consent of all both
governments and citizens.
REFERENCES
 http://www.imerisia.gr/article.asp?catid=26510&subid=2&pubid=113222834http://el.wi
kipedia.org/wiki/%CE%94%CE%B7%CE%BC%CF%8C%CF%83%CE%B9%CE
%BF%CF%82_%CF%84%CE%BF%CE%BC%CE%AD%CE%B1%CF%82
 http://el.wikipedia.org/wiki/%CE%9A%CF%85%CE%B2%CE%AD%CF%81%C
E%BD%CE%B7%CF%83%CE%B7_%CF%84%CE%B7%CF%82_%CE%95%CE%
BB%CE%BB%CE%AC%CE%B4%CE%B1%CF%82
 http://el.wikipedia.org/wiki/%CE%9A%CF%81%CE%AC%CF%84%CE%BF%C
F%82_%CF%80%CF%81%CF%8C%CE%BD%CE%BF%CE%B9%CE%B1%CF%8
2
 http://en.wikipedia.org/wiki/Economy_of_Greece
 http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&plugin=1&language=
en&pcode=teina225
 http://nemertes.lis.upatras.gr/
 Η οικονομική κρίση στην Ελλάδα :Μεταρρυθμίσεις και ευκαιρίες στην Ελλάδα
σε μια κρίσιμη συγκυρία , Δημήτρης Βαγιανός ( London School of economics ,
CEPR και NBER ) Νίκος Βέτας (Οικονομικό Πανεπιστήμιο Αθηνών και CEPR)
Κώστας Μεγήρ ( Yale University ,University College London and IFS .