Greece economic standing is one of the major concerns of many investors. To many people in the industry, Greek’s difficulty to overcome its problems is significant in forecasting future movements of the global market.
Greece is a highly developed country and it is one of the members of the European union. Various factors affect Greece economic standing such as its primary industry that includes tourism, petroleum, tobacco and food processing, textiles and industrial products. The human development index is very high indicating literate and educated citizens and a high standard of living.
However, any investors who have looked into the papers should know that the Greek market is on the rocks and Greece economic standing is far from stable. Knowing the facts behind the current crisis in Greece would be a start.
In 2009, Greece economic standing started to entered a recession. This was mainly attributed to the subprime mortgage crisis in the later part of 2000s. However, there were more problems than just external investments to worry about since the country is knee-deep in debt and it cost a borrowing of billions of pesos from the International Monetary Fund. Greece economic standing is grim enough to ward investors to look out.
Currently, the credit rating of the country according to Fitch is CCC which indicates that it is vulnerable and dependent on favorable business and economic conditions to meet its payment commitments. On the Other hand, Moody’s rate Greece as Ca which is a rating given to loans that is highly speculative and is usually defaulted on. The credit downgrading is a huge indicator that Greece economic standing is highly vulnerable.
The debt crisis in Greece is a warning for investors who are putting their money on European Union markets since the effect of the debt crisis in this country can affect neighboring areas. Information on Greece economic standing is not of concern only to the country’s investors because it can also have a major effect on global markets.
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