Greece

Question 1

Name 4 problems/weaknesses with Greece’s economy.

Answer 1

• Shrinking and ageing population
• Low productivity and innovation
• High rate of structural unemployment
• Heavily relies on the primary sector

Question 2

What happened in 2009-2015 to the Greek economy.

Answer 2

2009-2015: Huge crisis, massive budget deficits caused by lack of tax revenue + generous pension scheme.
EU country so went to Germany and France for help but was told to implement austerity

Question 3

What and why was a specific deflationary fiscal policy implemented in Greece to help them recover after the 2009-2015 crises?

Answer 3

Due to Greece being an EU country, they went to Germany and France.

However, Germany and France only agreed to help Greece if they implemented austerity.

Question 4

What monetary union is Greece a part of?

Answer 4

Eurozone

Question 5

How does Greece being a member of a monetary union benefit them?

Answer 5

• There is price transparency as any consumer can readily compare prices of goods and serviced with other countries.
• less effort/ costs to exchange money into euros= easier travelling between nations
• Free movement of labour

Question 6

What are 3 disadvantages of Greece being a member of this monetary union?

Answer 6

• Greece has to directly compete with France and Germany
• Easier for greek people to find better opportunities in other eurozone countries= Brain drain 2016 43% of 18-24 year olds in Greece considered moving to another country
• Have no control over your own countries monetary policies

Question 7

How high has unemployment been in Greece for over the last decade?

Answer 7

Over 20%

Question 8

Name one thing that the Greek government ha done to improve economic growth e.g through a possible increase in FDI.

Answer 8

2019: Cut Corporation tax from 28% (one of the highest in Europe) to 24%

Question 9

What is Greece’s Gini coefficient?

Answer 9

0.33

Question 10

What is Greece’s credit rating?

Answer 10

S&P BB- (fairly low)

Question 11

What percentage of GDP did Greek pensions absorb?

Answer 11

17.5% (higher that any other EU country)

Question 12

How much did the Greek government have to cut pensions by due to austerity?

Answer 12

1% of GDP

Question 13

How much money has been lost from tax evasion in Greece?

Answer 13

€30 billion estimated per year in 2012

Question 14

What proportion of Greek households relied on pensions?

Answer 14

1/2

Question 15

Name 3 goods that Greece exports

Answer 15

• Aluminium
• Plastics
• Fruits/ Vegetables

Question 16

Name 3 imports that Greece imports

Answer 16

• Crude petroleum
• Electronics
• Pharmaceuticals