What Are Some Facts About the Economic Crisis in Greece?


Quick Answer

Inaccurate reporting of revenues and expenditures from the mid-1990s to 2014 contributed to Greece's financial crisis, along with corruption and tax evasion. The economic crisis dropped the country from the 28th largest economy in the world in 2008 to the 44th largest in 2014. The country's unemployment rate is over 25 percent, as of 2015. Its youth unemployment rate is 49.7 percent.

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From the mid-1990s until 2014, the country reported small differences between its yearly revenues and expenditures. However, after elections, the new government often found that the previous government hadn't reported accurate numbers and that expenditures were actually much higher than tax revenues. Greece had to borrow money because of the deficit.

Studies estimate that corruption in Greece cost the country approximately 8 to 10 percent of its gross domestic product. One European Commission study in 2014 called Greece the European Union's most corrupt country. Tax evasion is common in Greece, particularly amongst the self-employed, who accounted for 28 million Euros of tax evasion in 2009.

Greece's high youth unemployment rate has led to 65.3 percent of those between the ages of 18 and 34 living with their parents. The percentage steadily increased from 2010 to 2015.

The Greek economy reached a peak gross domestic product of 242 billion Euros in 2008. However, the economic crisis caused a steady decline, and it fell to 179 billion Euros in 2014.

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