Eurozone crisis/Addendum

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This addendum is a continuation of the article Eurozone crisis.

The financial status of the PIIGS countries

Portugal Ireland   Italy    Greece    Spain  
Private sector debt 2008 (per cent GDP)
Public debt. 2010 (per cent GDP)[1] 83.1 99.4 118.4 130.2 63.5
Percentage of public debt that is foreign-owned 2007[2] 55 62 42 48
Average time to maturity of public debt, years[3] 6.6 6.9 7.2 7.8 6.4
Primary budget deficit, 2010 (per cent GDP)[1] 4.1 29.3 0.8 2.2 7.3
Spreads (against 10 year German bunds) December 2010, per cent[4] 3.5 6.0 1.7 9.5 2.3
S&P credit rating, July 2010 [5] A- AA A+ BB+ AA
Current account deficit, 2010 (per cent of GDP)[6] 10.0 2.7 2.9 10.8 4.8

Sustainability adjustments

The primary budget balance (as a percentage of gdp) required to avoid an increase in the public debt is given by f = d(g - r) where r is the annual interest rate on the debt; and g is the annual growth rate of nominal GDP (See the debt trap identity)

Portugal Ireland   Italy    Greece    Spain  
    (g - r)  2003-2007 -0.2 2.2 -0.7 3.9 1.7
    (g - r)  2009-2011 -3.3 -5.3 -3.6 -6.0 -2.3
Budget adjustment to achieve sustainability (% of GDP) 3.1 7.5 2.9 9.9 4.0

Source: Cinzia Alcidi and Daniel GrosIs: Is Greece different? Adjustment difficulties in southern Europe, Vox, 22 April 2010[1]

GDP growth

(per cent change on previous quarter)

2009 2010 2011
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Portugal -0,2  1.1  0.2  0.4  
Italy -0.1  0.4  0.5  0.2
Ireland -2.5  2.2 -1.2
Greece -1.1 -0.6 -1.7 -1.1
Spain -0.2  0.1  0.3  0.0
 Eurozone   0.2  0.4  1.0  0.4

(Source: Eurostat[2])