The Current Conditions Of Greece's Economy

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Recommended: The Greece economy post the great recession

There are many variables that lead the current condition of Greece’s economy. It would seem that joining the euro allowed Greece, until 2008, to catch up and even surpass its richer Eurozone partners, but these gains have been completely wiped out in the years since. The adoption of the euro gave Greece the advantage in loan rates as well as low rates on the euro bond market. These actions gave Greece a boost in consumer spending which led to great economic growth. Between the years of 1997 and 2007, Greece had an outcome of an average 4% gain in GDP growth. Greece as well as its other European neighbors was hit with the financial crisis and the resulting economic slowdown took a toll on Greece’s growth rate, which dropped to 2% in 2008. In 2009 the recession hit and the economy contracted by 2.4% as a result of the crisis and its effects on credit, world trade, and domestic consumption which is Greece’s main source of growth. High growth and low interest rates were doing a great job of covering up fiscal issues and structural weaknesses that were made worse by the financial crisis a...

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