Following the announcement by Standard & Poor's on 2 December to review Greece's credit rating, Moody's Investors Services indicated it was undertaking a revision of the country's sovereign rating for a possible downgrade from the current Ba1. The statement cited concerns about whether the country will be able to reduce its debt to sustainable levels, given a considerable shortfall in 2010 revenue. Questions are also being raised about the possibility that conditions of aid may change, after the European Union raised the country's debt forecasts in November. Against this backdrop, the country embarked on additional measures to tackle the fiscal deficit. On 14 December, parliament passed emergency legislation in a 156 to 130 vote, which dictates a fresh round of pay cuts, forced staff transfers within state companies and more flexible labour laws, in exchange for the rescue package from the European Union, the European Central Bank and the International Monetary Fund. As the government initiates cuts to pensions and salaries, while increasing taxes and raising the retirement age to slash public spending, nation-wide strikes have again brought the economy to a halt. On 15 December, violent clashes broke out in Athens, followed by a strike of transport workers a day later and rounded off with a 48-hour strike in the media sector. Market remained largely indifferent to both the government initiative and the subsequent strikes and investors' risk aversion towards Greek assets remains high. On 17 December, Greece's 10-year benchmark bond yielded 11.89%; Greek bonds yield 856 bps more than the equivalent US Treasuries and 887 bps more than those of Germany.
Strikes bring economy to virtual standstill in mid-December
December 20, 2010
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Greece Economic News
October 10, 2016
In August, industrial production fell a working-day adjusted 0.3% compared to the same month last year, which contrasted the revised 4.7% expansion in July (previously reported: +4.1% year-on-year).
October 6, 2016
The number of unemployed fell by 5,357 in July, according to the Hellenic Statistical Authority (EL.STAT.).
October 3, 2016
The IHS Markit manufacturing Purchasing Managers’ Index (PMI) deteriorated in September, erasing most of the gains made in August.
September 9, 2016
In July, industrial production rose a working-day adjusted 4.1% compared to the same month last year, which came in below the revised 7.9% expansion in June (previously reported: +7.5% year-on-year).
September 8, 2016
The number of unemployed fell by 6,800 in June, according to the Hellenic Statistical Authority (EL.STAT.).