As
the euro zone's weakest members crawl out of their longest recession in
modern history, their prospects of recovery are weighed down by a
crushing mountain of debt far heavier than before four years of
financial crisis.
Italy, Greece, Ireland and Portugal all have public debt well in excess of annual economic output and risk a Japanese-style "lost decade" of grindingly low growth and high unemployment as they slowly repay their way out of trouble.
The average ratio of debt to gross domestic product in the 17-nation single currency area stands at 95 percent - lower than in the United States and far less than Japan but dangerously high for ageing societies that cannot individually print money or devalue
Source and full story: Reuters, 28 October 2013
Italy, Greece, Ireland and Portugal all have public debt well in excess of annual economic output and risk a Japanese-style "lost decade" of grindingly low growth and high unemployment as they slowly repay their way out of trouble.
The average ratio of debt to gross domestic product in the 17-nation single currency area stands at 95 percent - lower than in the United States and far less than Japan but dangerously high for ageing societies that cannot individually print money or devalue
Source and full story: Reuters, 28 October 2013
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