Report about Greece Essay Example | Topics and Well Written Essays - 500 words

Report about Greece - Essay Example This has been the state of affairs affecting Greece. This paper looks at the turnaround experienced by Greece through analysis of the country’s GDP growth and its economic performance of the region. The GDP of Greece since 2008 has been on the rocks according to statistics provided by the World Bank (2014). The nation has experienced a mere 0.46 percent growth since this time with a low of -2.80 percent in 2010 (Tradingecomomics, 2014). Based on this, it is clear that the nation is facing an economic crisis. Despite this there is, the nation is forecasted to do better as it is now picking up from the low it experienced as shown in the graph below. From the above, one can see that the GDP of the state has been taking a downward trend, but has picked up in the last few years. This can be attributed to the reforms placed in the employment sector. According to BBC’s Mark Lowen (2014), through the job cuts and firm restructures, the rate of unemployment has reached an all time high of 28 percent and contrasts the turnaround experienced by the nation in terms of economic growth. Before, at least 50,000 jobs a year were made available to the citizens of the nation and the economy was growing at 5 percent annually. After the crash, the inverse was experienced with the rate of growth plummeting and the unemployment rate increasing rapidly. In accordance with Herbert Grubel (2013), the problem resulted from the instability of prices. That is to say inflation caused by those in government. The problem began when wages were reduced, resulting in the leaders increasing the nominal wages in the public sector. The higher wager resulted in the printing of more money, increasing the deficit experienced by the nation. All this resulted in inflation in the region and led to the collapse of the Greece economy and thus the increased rate of unemployment and the fall in the growth of the GDP. According to N. Roubini (As cited by George Alogoskoufis, 2012),