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Greece Economy Shrinks 1.8% As Consumers Cut Spending


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http://www.bbc.co.uk/news/business-11229042

The debt-laden Greek economy shrank 1.8% in the second quarter as households slashed spending.

The contraction was worse than expected and compares with the 0.8% shrinkage in the January-to-March period.

Greece's national statistics office said that private consumption dropped 4.2% year-on-year, against a rise of 1.5% in the previous quarter.

The figures underline Greece's struggle against recession and cast a shadow over European stock markets.

The statistics agency said that gross capital investment tumbled by 18.6% in the second quarter, while exports fell 5%.

Greece is in the grip of a deep economic crisis.

The country has imposed radical austerity measures to balance the books and has been granted 110bn euros ($140bn; £90bn) in emergency aid from the European Union (EU) and International Monetary Fund (IMF).

Debt worries

Platon Monokroussos, economist at EFG Eurobank, said that there would be no let-up for the economy in the short term.

"Economic growth is likely to remain firmly in negative territory in the second half, given tight domestic credit conditions and the government's austerity programme," he said.

And when GDP shrinks the debt to GDP ratio goes up, anyone know what the relationship is when this happens ie a 1% contraction = a x% increase in the debt ratio.

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Here we go, measuring the money again!.

Are greeks producing less wealth at this time? Has a crop failed? Are they starving themselves to death?

No, but debt is going to be defaulted....Id bank on it.

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100% guaranteed, protect yourself, buy fishcakes

At last, some suggestion as to how to protect yourselves.

Id prefer white bread, butter and Genuine Birdseye fried, COD fishfingers in a sandwich, a dash of tomato sauce though.

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hardly surprising , the greeks have an even worse manufacturing situation than the UK

all that kept them afloat was their shipping monopolies which have been decimated by the GFC

They had a tourism industry before they joined the Euro. Now even the Gemans go to cheap non Euro currency locations, like Turkey, Egypt, Thailand, etc.

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They had a tourism industry before they joined the Euro. Now even the Gemans go to cheap non Euro currency locations, like Turkey, Egypt, Thailand, etc.

At least they're only going there on holiday. For now.

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  • 428 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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