“Greece Bailout Era Ends”
After 8 long years, Greece is finally at the end of its bailout. The bailout program came from several lenders, most coming from International bailout funds like the International Monetary Fund (IMF) and the European Union (EU). Some other funds came from other European nations, with Germany loaning the most for an independent country. Now that Greece is out of the Bailout Era, it can finance things on its own, however they are still 352.7 billion dollars in debt. Despite this large amount, the future looks bright for Greece.
How Did It Start?
After the 2007-2008 global financial crisis, many countries felt the effects. However one country that was especially affected by the crisis was Greece. As the cost borrowing money went up and a lack of money from taxes, Greece was unable to service its mounting debt. In 2010, the Greeks finally revealed their staggering deficit to the world.
Economy of Greece
The economy of Greece had suffered a lot and is still suffering, however it is on the rise. The amount Greece had been loaned is 180% of the countries GDP. This means that the Greek government owes 180% more than what their economy is worth. At some of the low points of the Greek financial crisis, some feared that the eurozone would collapse alongside Greece. The United Kingdom actually decided to leave the European Union as they thought it was too expensive and they disagreed with many issues concerning the EU. After 2010 the Greeks had to take several funds and slash spending. The spending cuts angered many citizens as many lost pensions and benefits. Along with those, many lost their jobs with the unemployment rate topping off at 28%. As a result of this, riots and protest occurred in Greece concerning the issues of the nations budget. Over the past decade Greece had been in a lot of debt. However the nation is off of life support and is able to do things more freely. Now that Greece is out of its bailout program, things are starting to pick up again with their economy.
The Future of Greece
Greece is still not at a good place as many citizens are homeless and below the threshold of poverty. However the nation’s economy is at its best over the past decade. The unemployment rate, although still high has improved. It is now at 19%, which is better than ever in the recent past. One of Greece’s biggest industries is tourism. This industry has been a spectacular help for Greece as it contributes to 18.6% of the nations GDP. Along with the large part of the economy dedicated to tourism, the industry also contributes to a large sum of jobs for Greek citizens. The industry has around one million jobs and according to forbes.com, “One in five jobs created in Greece is related to the tourism sector”.
The Greek people will feel the effects of the financial crisis for decades. However, Greece’s future beginning to look good. With tourism booming, the Greek economy will benefit greatly. This year, the country is projected to welcome 32 million visitors. Every year since 2014 the number of visitors to Greece has increased. With the help of many visitors, Greece will likely be able to restore its economy to where it once was and have a bright future.
Works Cited
Lane, Lea. “Despite Economic Problems, Greece's Tourism Looking Good In 2017.” Forbes, Forbes Magazine, 6 June 2017, www.forbes.com/sites/lealane/2017/06/05/despite-economic-problems-greece-tourism-looking-good-in-2017-using-new-strategies/#6f83d731541f.
Morning, Money. “How Much Does Greece Owe? 4 Charts That Put Greek Debt in Perspective.” NASDAQ.com, Nasdaq, 25 Mar. 2015, www.nasdaq.com/article/how-much-does-greece-owe-4-charts-that-put-greek-debt-in-perspective-cm458586.
Walker, Andrew. “Eurozone Bailout Programme Is Finally Over.” BBC News, BBC, 19 Aug. 2018, www.bbc.com/news/business-45186511.
For Greece it is very good that they are making progress. Right now they need to focus on tourism, getting money to afford jobs to lower the unemployment rate. This will help the country as a whole to a better economy, and stable. Which leads me to talk about stability. Greece will not benefit from a year or two of having a good economy, once the unemployment rate decreases more people will have jobs and can afford taxes, which will benefit the government, and the government needs tax money. Overall stability is the answer to the problem.
ReplyDeleteLukas
It is funny how tourism is the main source of income in Greece as looking at what has occurred, it lends to the idea of other things being their main income. I used to want to travel to Greece and see the many different parts from the natural scenery to the buildings but after the recession, the idea scared me as it did for so many other people. Tourism is very popular but it should not be relied on solely for a country. The current of tourism changes so much and is impacted by the littlest things that is seems inefficient for a country. I understand that there are many other ways Greece benefits but for now, it seems that they are putting too much effort into it.
ReplyDeleteI was aware of the struggling economy in Greece, but had no idea of these details or that there was a bailout which just ended. I can also see how tourism would contribute so greatly to its recent improvements, as many people are eager to travel there, though certain islands are much more densely populated during the summer months. Hopefully this upswing will result in a better economic standing for the country.
ReplyDeleteI have always wanted to go to greece!! This was really interesting to hear about. I didn't know this information about their economy, something that I did know was that everything there is super expensive. I figured tourism was such a big deal there since it's so pretty so many people want to travel there.
ReplyDeleteAgastya Asthana,
ReplyDeleteGreece is a wonderful place to be and no wonder its major industry is tourism because I myself have gone to Greece and enjoyed much there. Improving economy is a huge benefit to Greece and improving does not mean improved so the progress Greece is making must not stop. Greece must utilize its tourism industry to the maximum in order to stabilize their economy. Thank you, good night.
Part of the reason Greece got into such a mess in the first place is that they lied on their application to join the European Union, inflating economic indicators in order to mask insecurities in their economies. Because of this and the changes in fiscal policy that the EU forced Greece to adopt in exchange for their bailout has caused Greeks to have among the highest rate of euro-skepticism and the country is divided on whether they even want to remain in the EU.
ReplyDeleteI was planning this surprise for a long time now! I can finally visit all the places I dreamt of! The commitment shown by this Greece Visa Service team is far better than any other Agency I tried in the past! With exponential rise in fraud, you are still holding the flag of professionalism!
ReplyDelete