The Great Recession of 2007-2009 represented a huge test for the Eurozone. One of the hardest hit nations during this highly turbulent economic period was Greece. At the time, Greece was struggling mightily with a ballooning spending deficit. The country revealed its staggering debt crisis to the world. Greece showed its soaring deficit its European and international allies and was soon frozen out of bond markets.
Greece would go on to ask for financial assistance from the European Union and the International Monetary Fund (IMF). Fortunately, the country did begin to receive emergency loans beginning in 2010. Greece received three packages that totalled $289 billion. However, these same bailouts came at the price of strict austerity measures that put immense pressure on the small nation.
Fast forward to 2023, and Greece is now booming compared to many of its European peers. It is set to finish as one of the Europe’s fastest growing economies over this past year. Greece has seen its debt reappraised by credit agencies, allowing for significant foreign investment going forward. Greece has also maintained its strength as a tourist destination, spurring new jobs in services sectors and areas like construction.
Of course, Greece is still facing risks going forward. Debt remains at 166% of its total GDP, which is among the highest ratios on the planet. Moreover, Greek banks still hold a greater proportion of nonperforming loans than the European average. Regardless, investors have reasons to be optimistic about Greece going forward.
