Question

Explain the current economic situation of Greece and predict what will happen in the coming 9-12 months

Answer 1

In the European Union most real decesion making power particularlly on matters involving politically delicate things like money and migrants rests with 28 national governments, each one behold to its voters and taxpayers. Since, Greece debt crisis began in 2010 most international banks and foreign investors have sold their Greek bonds and other holdings, so they are no l,onger vulnerable towhat happens in Greece.At the height of the debt crisis a few years ago many experts worried that greece's problem would spill over the rest of the world. If greece defaulted on its debt and existed the eurozone they argued it might create global financial shocks bigger than the collapse of Lehman Brothers did. The greek government debt crisis is also known as Greek Depression faced by the greece in the aftermath of the financial crisis of 2007-08. The government enacted 12 rounds of tax increases spending cuts and reforms from 2010 to 2016 which at timesw triggered local riots and natinwide protests. despite these efforts the country required bailout loans in 2010, 2012, 2015 from the IMF. After a popular refrendum which rejected further austerity measiures required for the third bailout on june 30,2015 Greece became the first developed country to fail to make IMF loan repayment.

In the coming months the economic growth is expected to gain steam this year thanks to improving labour market dynamics and a more stable political backdrop. Debt relief negotiations are currently ongoing and will likely be key to the economy's loing-term success. In 2018, unchanged from last month's forecast. in 2019 growth is ecpected to be 2.2%.