Greek Economic Crisis Essay

Introduction

Along these years we have questioned what are the causes of a country being bankrupt. Bad decisions taken by countries are second to none. In this essay, we are going to inquire which situations put the countries at risk and the consequences that this has on their economy.

As an example, we are going to study the Greek economic crisis. The expectation of the duration of the crisis was not as large as it actually became, moreover the consequences were dramatic for the society and the economic sectors. The most significant one was the terrific rise in unemployment rate.

The Greek government-debt crisis started at the end of 2009 and the factors that triggered this crisis include the weak Greek economy, a bank crisis and the concealment of data by the government. This cover-up of data caused the loss of creditor’s confidence.

Despite the efforts of the country for an increase of taxes and a reduction of spending, the debt was still being disproportionate; therefore in 2011, 2012 and 2015 Greece applied for a loan from the international monetary fund (IMF), Euro Group and the European central bank (ECB).

GDP:

How the Greek crisis affected the GDP.

The Greek crisis provoked a need to improve competitiveness and redirect governmental spending.

As Greece is one of the top tourist destinations in the world, this crisis triggered bad

The main reasons for this fact are first, the weak link between the educational system and the labor market (Katsanevas 2002). Young people are struggling to find a job in the labor market after graduation from the university. As a consequence, structural unemployment arises, due to the fact that supply of labor does not meet the demand. The second reason is the Greek willingness for a further education, which is provoking a higher rate of unemployment among