2015年3月21日 星期六

Composition of GDP- Graphs





Negative net exports


Greece has a negative net export -3.3%, which is unhealthy to the economy.  Greece has long been the European Union (EU) member state with the lowest export share in GDP. And it has been exacerbated during the crisis, with Greek export performance deteriorating significantly and lagging behind the recovery in other programme countries. The paper also commented that Greece lacks openness (Böwer, U., Michou, V., Ungerer, C., 2014)


Investment and Public Debt


Investment declining

Investment declines to about 25% in 2003 to half of it in 2013.  The lack of attractiveness thus enthusiasm of investors can be resulted from pessimistic expectations of getting profit back because of the government debt born, the lack of development opportunities compared to other countries, or the absence of government policies that encourage investment. 

Public debt rising


Public debt exceeds total output and it keeps increasing. From the GDP figures, it can be seen that the economy improved and peaked in times near 2006, but it declined and recently reached a stage of stability.  The figures of public debt follow the trend: from 100.9% of public debt in comparison to GDP, it fell to 82.4% in 2006, but it dramatically bounced back to 175% in 2013.  This should be attributed lack of government income and excessive government expenditure.  The government relies on borrowing as a source of money for running.
 
References
Böwer, U., Michou, V., Ungerer, C., (2014). The Puzzle of the Missing Greek Exports. European Economy. 518 (Introduction), pp.2





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