The economic down turn of 2008, which was a result of the global recession in that same year, hit some European nations hard. Greece’s debt to GDP ratio was dangerously close, markets collapsed, and jobs were lost, needing a strong bailout from the International Monetary Fund (IMF).
Reports have shown that the nation is starting to tiptoe out into capital markets once again, with help from other European nations and even more assistance from the IMF. Though this is not the first time Greece has shown an interest in trading or rejoining the international market or promise of growth, this particular instance seems to be more permanent.
However, with youth unemployment the highest in all of Europe at 58 percent, and unemployment still at astronomical numbers at over 28 percent, along with other negative economic indicators, many are understandably cautious about Greece’s re-entry. Amidst all the people who are still unemployed and even more who have migrated to other countries all together to find work, Greece has made this move most likely as a way to alert the world that although they have a long way to go, the world should not completely forget about them.
The European Commission expects a turnaround and “robust growth” in 2015, which is probably the reason for Greece’s reemergence, to establish new relationships and connections before the actual growth occurs.
The nation still owes a substantial debt to investors. With their bonds still wavering around junk bond level yields, Greece still has a way to go. But their situation is a lot like a patient in physical therapy. In order to walk again, no matter how grievous the injury, the road to recovery is actually getting up and attempting to put one foot in front of the other.
– Matthew Price