Greek Economy to Get Worse

Greek Economy to Get Worse.

Greece has suggested that its economy will contract even further as more austerity measures start to bite in 2013.

It estimates that its economy will contract for the sixth year in succession, with the economy shrinking by 6.5% in 2012 and 4.8% in 2013.

Our view
The Greek problem and indeed the whole European debt problem is not going away.  If economies shrink they cannot afford to meet debt payments, let alone pay their public sector workers and offer basis services.  Greece should leave the Euro, print drachma and enable itself to start economic development internally and develop to be feed its people and pay public sector workers.  For too long, Greece has relied on imports, particularly, imported food.  It is like WW2 Britain, were we cultivated every scrap of land available to grow food. Greece needs to go back to basics.