Greece may quit Eurozone, says Capital Economics expert

The political and economic uncertainty continues to fuel social unrest in the country, which has been struggling to pay off its debts via the coordination of European Commission, European Central Bank and International Monetary Fund (IMF).

Greece may quit Eurozone, says Capital Economics expert

Ben May, European economist of London-based finance institution Capital Economics, said, "If Eurozone creditors behave unwilling in decreasing Greece's debt burden, it might lead the country's collapse and quit from Euro zone."

Speaking to Anadolu Agency (AA), May stated that if Greece faced deflation, the nominal GDP could weaken more than Troika's prediction, and this could result in an increase in public debt to GDP ratio.

Regarding the suspicions about Greece's reaching the Troika's privatization target, he said "It is uncertain that the political instability would threaten Greece's rescue plan in the short run or not. However, realizing the recovery package is a low possibility in the long run."

Unemployment has trippled

The number of unemployed people surged to 1.4 million by the first quarter of 2013, from 462,343 in 2009 when the crisis first emerged, according to the IMF and Greek State Statistics Institution (ELSTAT).

The unemployment rate, which was 9.4 percent in 2009, exceeded 26 percent in 2013 by almost getting trippled.

The GDP per capita has been continuously decreasing since 2009. While it was 20,400 euros in 2009, fell to 16,300 euros in the first quarter of 2013.

The political and economic uncertainty continues to fuel social unrest in the country, which has been struggling to pay off its debts via the coordination of European Commission, European Central Bank and International Monetary Fund (IMF).

The situation deteriorated as the multi-dimensional law envisaging the maintenance of EU and IMF aids, as well as layoffs in public sector, uniting certain schools and defense industry institutions, cancelling city police and school security units and placing municipality budgets under equity receiver by finance and interior ministries, passed from Greek parliament with consensus.

AA

Last Mod: 20 Temmuz 2013, 14:01
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