Sunday, 9 March 2014

Greece Economy

Greece is the 34th largest country in the world with a population of 11.28 million. The GDP per Capita of  Greece is 29120 Us Dollars.
The Living Standards of Greece are very high its economy relies 85% on service sector 12% on industry and 3% on agriculture. Greece has the largest marine merchant in the world which is 16% of the world. Tourism is a huge industry in Greece due to is its rich historical background every year  there are about 15 million tourists that visit to Greece it is the 7th most visited country in Europe other than tourism Greece is a considerable agricultural producer.

Fall of Economy
Since the start of 21 centaury economy of Greece was growing exponentially GDP in 2008 to 2009 was at the peak of 321 billion USD. After 2009 Greece has entered the depths of recession GDP has fall to 250 billion USD. The National debt on Greece is 300 million USD which is larger than its economy. The recent recession in Greece has caused a major unrest strikes and protests due to lack of foreign investment and due to lack of credibility of the government the economy of Greece has suffered a lot. Reason for recent recession in Greece is because of corruption and tax evasion the government is no able to maintain the financial reveres. To stabilize its economy government needs foreign investment due to lack of confidence in the government foreign investor are not willing to take any risks they demand higher interest rates on investments. To resolve the crisis Greece government requires loans up to 120 billion USD from the international organizations such as European Union and International Monetary Fund (IMF).The harsh loan polices of these organizations are resulting in increase in taxes, Public service pay and pension cuts increase in retirement  age by two years  these have caused nationwide strikes in various sectors of society. Greece is also seeking assistance from its neighbors like Germany which has devised rescue plans to aid Greece.

Causes of Recession

The recession can be summed  to following main reasons
·     Weak Government Polices
·     Corruption
·     Tax Evasion
·     Foreign Investment

Greece has to make hard choices to overcome the recession pay cuts my sound bad but are necessary as last resort but tax evasion is not tolerable Greece government has to make better polices and strict laws against tax evasion. Good leadership and with support of people Greece can overcome the recession.

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