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Chaos on the world arena

Greece

Greece is still stagnating

Greece holds its head above water again, even if it has been at the edge of technical default lately and had all chances to leave the EU. The thing is, Greece was granted the third bailout through the European Stability mechanism on 20th August. Last Thursday, the ECM offered Greece the first credit tranche in the amount of 13 billion euro. Once the amount was transferred to the country's account, Greek authorities repaid the EU 3.2 billion euro immediately to pay off the current debt.

However, the eurozone's main debtor seems to be in a mess currently. The world market volatility has a negative impact on Greece, weakened by the economic crisis. World investors' confidence, slightly regained after having signed the third bailout agreement, has been undermined again due to the latest market chaos and resultant capital flight. As for the latest tranche, it’s not all as easy as it sounds. The third bailout will require unprecedented austerity measures, which Greek people will have to put up with.

All this is happening against the background of the positive correction of the European currency, which will only provoke further economic stagnation in Greece.

To conclude, I'd like to mention that independent analysts have downgraded their forecasts with regard to Greece's GDP. According to the new expectations, Greek GDP growth will equal -1.7% in 2015 and -1.1% in 2016.