Although the economy of Greece had improved in recent decades due to the industrial development and tourism, presently the country faces a large and severe economic crisis and has many challenges to face, such as the low rate of development, the hight public debt and the large unemployment. The Greek crisis was triggered by the aftermath of the world-wide Great Recession, structural weaknesses in the Greek economy, and lack of monetary policy flexibility as a member of the Eurozone The crisis included revelations that previous data on government debt levels and deficits had been underreported by the Greek government. In 2010, Greece said it might default on its debt. To avoid default, the EU loaned Greece enough to continue making payments. Since the debt crisis began in 2010, the various European authorities and private investors have loaned Greece nearly 320 billion euros. It was the biggest financial rescue of a bankrupt country in history. As of January 2019, Greece has only repaid 41.6 billion euros. It has scheduled debt payments beyond 2060. In return for the loan, the EU required Greece to adopt austerity measures that, however, had disastrous consequences for the Greek economy. In all, the Greek economy suffered the longest recession of any advanced capitalist economy to date, overtaking the US Great Depression and has not yet managed to return to the trend growth levels. How powerful is Greece economy? Find out by watching the video
Beginner guide to the main economic indicators: - GDP: is probably the most important economic indicator. It measures the market value of the total production of goods and services in a country in a period of time (usually one year). - GDP Nominal: Is the GDP at current market price, unadjusted for the effects of inflation. - GDP PPP: is the GDP converted to US dollars using purchasing power parity rates. Purchasing power parity (PPP) is used to adjust the exchange rate differences among countries. - GDP Per Capita: it is obtained by dividing the GDP with the population of the country. - Public Debt (also Government Debt): is the debt of the state to the private sector of the economy (businesses, families, banks) or the Central Bank- Inflation: is a sustained increase in the general price level of goods and services in an economy over a period of time. - Unemployment rate: is the number of unemployed people divided by the number of people in the labor force. - GDP Growth: is the increase in the market value of the goods and services produced by an economy. - Current Account Balance: includes all transactions with the rest of the world of a country (net trade balance in goods and services, net transfer payments, net foreign investments) in a period of time.
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