Eurozone crisis/Addendum
Jump to navigation
Jump to search
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, February 2011 [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
- ↑ 1.0 1.1 WEO projections, IMF Fiscal Monitor, November 2010
- ↑ ECB
- ↑ Global Debt and Deleveraging from McKinsey and the Economist, June 26 2010
- ↑ Euro Intelligence, 3rd December 2010
- ↑ Guardian Datablog, 19 July 2010 (ratings go AAA, AA, A, BBB, BB, B)
- ↑ Regional Economic Outlook, Europe, IMF October 2010
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])