Get Them to the Greek


By Camille MendozaWhat happens when a kid is not grounded anymore, but now his friends cannot go out to play? Greece is currently experiencing a similar situation, considering its neighbors are not playing ball. Its trade deficit reached a peak of 4 billion EUR in July 2008, making it highly dependent on its neighbors for imported goods. Because Greece shares a common currency with other Eurozone members, it had to suffer through the late 2000s recession without the ability to devalue the currency, which would have made exports more attractive. Even so, Greece was able to decrease the deficit to 1 billion EUR in December 2014 through aggressive austerity. Although this is a substantial improvement, the deficit has stayed at  its pre-financial crisis value for the past two years. Countries like Germany and Italy, two of Greece's top 5 export destinations, were inching towards recession. In other words, Greece finally decreased the trade deficit substantially, but the other European countries are now unable to play--or rather, trade--with Greece. It looks like Greece will have to sit alone in the sandbox.Sources