Greece: The Economy Recession

Different countries have faced different trends in their economic performance in the last few decades. Though recessions are common to all countries in the world due to the increased international trade, the impact of world recessions have being severe to some economies. Some have even faced recessions which have had little impact on the economy of other countries. Greece, for instance, has faced a poor economic performance in the last decade which has being characterized by great debts. In this essay, the economic performance of Greece in the last decade would be discussed. More specifically, the economic strengths and vulnerabilities of Greece during recessions and how the Greece government should strategize itself to respond to recessions would be discussed.

The economy of Greece has being coupled with very many problems over the last decade and still economic forecasts show that the situation is likely to be worse in the next few years. The economy is expected to shrink further in the current year by around 4.5% with the government debt expected to rise to 189% of the economic output of the country. To make the matters worse, the other countries in the euro zone are unwilling to bail Greece from her crisis with some countries arguing that the country should take her own responsibilities and should be left to recover on her own. The greatest concern is however that, leaving Greece to suffer may affect the other European counties and the world economy at large. Hence; there is a great need to help Greece out of the situation.

Greece government does not only face criticisms from the external environment but also from the internal environment. There are a series of strikes in the country as the citizens resist the austerity measures which the European countries have put on Greece, leading to increased social unrest in the country. The performance of the government is also under scrutiny both locally and internationally as it is viewed as having failed in its duties. This led to the removal of the dominant parties by May 2012 through voting out parties which were blamed for causing the collapse of the country. 

The world community is much concerned about the plight of Greece. German, for instance, could make open remarks on Greece telling her to leave the euro. This made the Greece officials to negotiate with the euro and the other related world stakeholders like the IMF, convincing them that they really needed their support and that they were committed to adhering to the financial expectations accepted internationally. This made the international community realize the effect of the austerity measures it had put on Greece on the living standards of the citizens and how it had become counterproductive.

In conclusion, the paper has identified some strength of Greece as a country which makes her resilient to the crisis. For instance, her membership to the European Union has being identified as one of the greatest strengths she has. In addition, her weak economic situation which is known to many countries is itself strength as she cannot be pushed any further. Despite these strengths, some vulnerabilities of Greece have being identified. These includes the persistent loss of international competence of the country, the increasing current account deficits, declining investment and saving both locally and at international level, and also the low attraction of foreign direct investors in the country. Lastly, some measures which the government should take to respond to the recession have being identified. These include fiscal measures.