News in Charts: No silver bullet to Greek Economy debt problem

The Euro Area has officially re-entered recession. GDP fell 0.1% in the third quarter, following a 0.2% fall in Q2, and output is down 0.6% year-on-year. The core northern economies of France and Germany just about managed to eke out some growth, but it is clear that momentum, even there, is fading fast. Meanwhile, the periphery remains in a self-defeating cycle of austerity, disappointing growth followed by even more stringent austerity. Nowhere is this more true than in Greece and within the Greek economy. Economic output is down 7.2% over the past four quarters, and a remarkable 20% below its pre-recession peak. This pain has been inflicted, in principle, to restore Greece to fiscal sustainability. Yet all the while debt as a share of GDP continues to rise ever higher, inducing calls for even more austerity. This cycle can’t continue forever. But where does it end?

Refresh Chart   Edit Chart

• Modern day Greek Depression
• Proprietary model sees debt-to-GDP at 150% by 2020
• How can this ratio be brought down more quickly?
• Greek problem needs a European answer

For complimentary access to the full analysis from Fathom Consulting, click here to login or register.