Tuesday, 19 June 2018

Revisiting The PIIGS Nations

When the Global economy had it's latest of a long line of hiccups in 2008, the PIIGS nations were targeted at the countries that would be hit the hardest and so after a decade of turmoil and austerity, how are the PIIGS doing?

P is for Portugal who had a debt of 71% of GDP and after going down the punishing austerity route and a loan of €79.0 billion from the International Monetary Fund (IMF), and after a decade the debt stands at 126% of GDP so not a resounding success.

I is for Italy who have recently seen their government collapse amidst a stagnant economy that in 2008 had a debt of 120% of GDP and a decade on the debt has increased to 139% of GDP and rumours persist that Italy will leave the Euro to try and get a grip on a basketcase of an economy.
I is also for Ireland who were on the verge on bankruptcy in 2010 until a €67.5bn loan from the European Central Bank and IMF bought them some time and despite dramatic austerity measures the debt of 42% of GDP in 2008 is now 68% today.

G is for Greece who made all the headlines with a debt at 109% of GDP in 2008 and despite eyewatering austerity which led to riots, strikes and the collapse of the government who have borrowed €230bn so far to stay afloat and are expected to return to the IMF and European Central Bank to ask for more, the debt per GDP today is a staggering 180%.

S is for Spain who saw the collapse of its banking system and a €100bn loan from Brussels amidst internal turmoil with some regions attempting to break away as it juggled a debt of 102% of GDP. The only one of the PIIGS who have seen their debt decrease, although at 99% of GDP today it is nothing to get excited about.

In all, the five nations who where most hardest hit by the 2008 economic crisis are still in a whole lot of bother despite loans of almost €500 billion between them and a decade of cost cutting, austerity, collapsing governments and general misery for their citizens.

Whatever they are doing isn't working very well but they will continue to do it anyway.

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