Monday, June 29, 2015

Memo to the EU: Just How Much More Pain Can Greece Take?

Without weighing in on the political argument about the Greek situation, consider these charts that show the overall macro level Greek situation.

At constant prices, overall Greek GDP has contracted by ~1/4 since 2008.

They've been in a near constant contraction.

Austerity hasn't worked; the debt/GDP ration has spiked from 112% to 171%.

The unemployment rate is a little over 25%.

Just what exactly is left to cut?