Build-Up to the current crisis

Current Economic Situation

What happened in Greece ?

Between 2001-2008 Greece reported budget deficits averaged 5% pet year, compared to Eurozone average of 2%

Greece borrowed from international capital markets to help with funding, leaving it with high external debt (115% of GDP in 2009)

The reduced savings and lack of confidence of investors has resulted in lower investment flows.

Negative impact on exports

There was a from in tourist arrivals

Income and savings had a downward trend worldwide after the crisis unleashed.