GREEK ECONOMIC CRISIS AND INTERNATIONAL TRADE

Candidates:Nikos Kolios (G.Leader) 2425Nikos Chanos 2553Aristeidis Kariotis 2412Vasilis Stavrakis 2518

Table of contents1.Introduction 2.Causes of the Greek economic crisis 3.Impact of the Greek economic crisis

3.1Neggative effects3.2Possitive effects

4.Greek crisis and the international trade 5.Ways to tackle economic crisis 6.Conclusion 7.References

1.Introduction

• CRISIS A situation in which the economy features a sustained and significant decline in economic activity!

National output and income , prices, unemployment rates , investments,savings ,deficit gross domestic product(GDP)

GREEK EXAMPLE

2.Causes of the Greek economic crisis

• Bubble in real estate prices overconsumption

• Rapid spread of housing loans from 3.8% in 2003 to 7% in 2009!

• The transfer of risk from the balance sheets of banks in the public and investors through securitization , such as debentures Liquidity.

Current account deficit

EXAMPLE

3.Impact of the Greek economic crisis 3.1Neggative effects

• Many businesses closed Many people lost their jobs Major increase in unemployment!

• Decline in the living standards of citizens and hence the lack of prosperity

• Decline of education ,research and science , the lack of social welfare and health care

Citizens feel insecure about today and their future!

• At the individual level there is a huge rising of mental disorders and depression.

3.2Possitive effects

• The reduction of consumerism through the satisfaction of basic needs

• The development of more humane values such as love , communication and understanding.

4.Greek crisis and the international trade

• Trade balance a rate that counts the international trade

The difference between the net exports and the net imports.

Greece Decrease in Greek trade • The foreign countries were forced to produce many goods in

order to send them here due to the big shortage we had and as a result we had an appreciation of the dollar over the euro!

•Decrease in incomes

•Lack of investors•Increase of unemployment

•Decrease in working force

•The move of many industries from our country to others in order to find cheaper working hands

Greek trade charts

5.Ways to tackle economic crisis

• The requirement of military and occupation compensations• Low interest rate loans except from international monetary

fund• Direct investments from outside the EU such as China and

Russia• The utilization of productive resources and the advantages of

our country(mineral wealth , energy , tourism, shipping, agriculture)

• Tackling tax evasion with modern ways • The reform of the political system into a more organized and a

non bureaucratic one

6.Conclusion

In conclusion ,the great economic crisis represents a major challenge not only for society but it also consists a test for the political and social system and in order to be surpassed it requires the society to develop the ability to adapt in uncomfortable situations like this. Let’s hope for the best!

REFERENCES

• http://www.elesme.gr/elesmegr/ellinikioikonomikikrisis.pdf

• http://el.wikibooks.org/wiki/%CE%9F%CE%B9%CE%BA%CE%BF%CE%BD%CE%BF%CE%BC%CE%B9%CE%BA%CE%AE_%CE%BA%CF%81%CE%AF%CF%83%CE%B7._%CE%91%CE%B9%CF%84%CE%AF%CE%B5%CF%82_%CE%BA%CE%B1%CE%B9_%CE%B1%CF%80%CE%BF%CF%84%CE%B5%CE%BB%CE%AD%CF%83%CE%BC%CE%B1%CF%84%CE%B1#.CE.91.CE.AF.CF.84.CE.B9.CE.B1_.CF.84.CE.B7.CF.82_.CE.BF.CE.B9.CE.BA.CE.BF.CE.BD.CE.BF.CE.BC.CE.B9.CE.BA.CE.AE.CF.82_.CE.BA.CF.81.CE.AF.CF.83.CE.B7.CF.82

• http://el.wikibooks.org/wiki/%CE%9F%CE%B9%CE%BA%CE%BF%CE%BD%CE%BF%CE%BC%CE%B9%CE%BA%CE%AE_%CE%BA%CF%81%CE%AF%CF%83%CE%B7._%CE%91%CE%B9%CF%84%CE%AF%CE%B5%CF%82_%CE%BA%CE%B1%CE%B9_%CE%B1%CF%80%CE%BF%CF%84%CE%B5%CE%BB%CE%AD%CF%83%CE%BC%CE%B1%CF%84%CE%B1#.CE.95.CF.80.CE.B9.CF.80.CF.84.CF.8E.CF.83.CE.B5.CE.B9.CF.82_.CF.83.CF.84.CE.B7.CE.BD_.CE.BA.CE.BF.CE.B9.CE.BD.CF.89.CE.BD.CE.B9.CE.BA.CE.AE_.CE.B6.CF.89.CE.AE_.CE.BA.CE.B1.CE.B9_.CE.BF.CE.B9.CE.BA.CE.BF.CE.BD.CE.BF.CE.BC.CE.B9.CE.BA.CE.AE_.CE.B6.CF.89.CE.AE

• http://www.statistics.gr/portal/page/portal/ESYE/PAGE-themes?p_param=A0902&r_param=SFC02&y_param=2009_06&mytabs=0

• http://www.greekdefaultwatch.com/2010/09/banking-sector-review-september-2010.html

• http://www.tradingeconomics.com/greece/indicators

• http://epp.eurostat.ec.europa.eu/portal/page/portal/statistics/search_database

Thanks for your time!