PIIGS

PIIGS

What PIIGS have in common --> Econonical inestability + high debt + high unemployment + unestable governments.

Cause of trouble --> Economical crisis and Globalization process Problem --> Difficulties to return the money

Comparing PIIGS --> Situation of Portugal, Italy, Ireland, Grecee and Spain Solution ---> The needed of corrective actions

¿What are PIIGS?¿ Why these countries are grouped together? PIIGS is the acronym that defines a group of countries with similar situations. These countries are Portugal, Ireland, Italy, Grecee and Spain and they are considered the most damaged of the EU after the financial crisis.

Each of these countries has had previous experiences with growth and economic success but, because of the economical crisi most of their GDP, has to be finances, leaving these countries with high debts. What's more, thank's to globalization, there are an increasingly exchange of financial money through the borders, so, were potential economies (such as EUA) the main borrowers. Due to this fact, the dollar has increased their importance, while PIIGS currencies were increasingly weak and unstable. As a result, we are witnessing a risk of defulting because PIIGS have strong difficulties to return the money and eliminate their debt.

According to the current situation of PIIGS, we can state that all of them are based on high debt-to- GDP ratio ( mainly Grecee with 125% and Italy with 115'5% ), high level of unemployment (15% approx) political inestability, unstable and corrupt governments and slow or non-economical growth.

As we can see, all these countries are needed of corrective actions, in order to help battle the economic downturn. What some countries are doing is, to take advantage of the strenght point of their economy. For example, Italy or Spain are trying to promote the tourism to add as much as added value to their GDP as possible.

To conclude, PIIGS are a group of countries with non-profitable situation which have to improve a lot of aspects to throw of the negative connotation that the acronym implies.

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