By: Raziq K.
How do countries so beautiful, turn out in debt? You would think more beauty, more tourists, more money, therefore less debt. But in these examples, that was not the case. Their beauty still got them into debt, some more serious than others. So here is a countdown of the top 5 beautiful countries that are or were recently in debt.
In 2010, Ireland started going the wrong way, and was gaining momentum going downhill even after they got some bailout money. There were many factors that led to Ireland recovering from there debt. One of the factors was that favorable demographics gave rise to the increase in the number of workers entering the labour market. Another one is that the arrival of the EU single market made Ireland attractive for inward investment, and countries like US helped Ireland boost its exports.
Italy had a two-year recession, and it took a heavy toll on the people who are increasingly digging into their savings. From 2010-2013 only 57.6 percent of kids who graduate got employment in Italy, and Europe’s average was higher at 77.2% according to ISTAT. ISTAT also says that 8.6 million people who live in Italy live in seriously deprived families. In 2011, behind Greece, Italy has the second worst in the Euro zone.
A major amount of Portugal’s debt comes from foreigners, and the economy is in the worst trouble it has been into yet. From 2010-2014, Portugal had a great recession, where they were unable to pay back the people without having third parties helping them out. Around 2009, two Portugal banks have been losing a lot of money mainly from bad investments, embezzlement, and accounting fraud. IN the first quarter of 2010, Portugal had one of the best economic recovery rates in the EU. Then in summer 2010, Portugal spent a lot on economic stimuli, and that led to debt levels. They were even identified in the 2010 Euro Crisis as concern spread over increasing government deficit and debt levels along with other countries.
Spain is an example of a country that has gotten out of a huge debt. Currently they are doing okay, but in 2008 Spain had a crazy low of 36.1 of a GDP (Gross Domestic Product). The GDP measures the total dollar value. But now, Spain has recovered in the past 7 years to now sit at a 97.7 GDP. Spain has had one amazing recovery, to establish its GDP just below 100.
Greece is in extreme debt at the moment. They currently owe $323 billion euro, which is owed to many countries in Europe and several other banks within Europe. Over the last 10 years, Greece has borrowed lots of money from other banks and countries governments all across Europe. They used that money to pay for the people, and for the 2004 Olympic games. Recently on July 5th Greece people had a vote to accept or decline the deals made with other countries to help Greece. The EU was going to give Greece 86 billion euro over the span of the next 3 years. The people declined the deal, and have been trying to return the money ever since.