Eurozone crisis/Addendum

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This addendum is a continuation of the article Eurozone crisis.

The financial status of the PIIGS countries

Portugal Ireland   Italy    Greece    Spain  
Public debt. 2010 (per cent GDP)[1] 83.1 99.4 118.4 130.2 63.5
Percentage of public debt that is foreign-owned 2007[2] 55 62 42 48
Average time to maturity of public debt, years[3] 6.6 6.9 7.2 7.8 6.4
Primary budget deficit, 2010 (per cent GDP)[1] 4.1 29.3 0.8 2.2 7.3
Spreads (against 10 year German bunds) December 2010, per cent[4] 3.5 6.0 1.7 9.5 2.3
S&P credit rating, February 2011 [5] A- AA A+ BB+ AA
Current account deficit, 2010 (per cent of GDP)[6] 10.0 2.7 2.9 10.8 4.8

Sustainability adjustments

The primary budget balance (as a percentage of gdp) required to avoid an increase in the public debt is given by f = d(g - r) where r is the annual interest rate on the debt; and g is the annual growth rate of nominal GDP (See the debt trap identity)

Portugal Ireland   Italy    Greece    Spain  
    (g - r)  2003-2007 -0.2 2.2 -0.7 3.9 1.7
    (g - r)  2009-2011 -3.3 -5.3 -3.6 -6.0 -2.3
Budget adjustment to achieve sustainability (% of GDP) 3.1 7.5 2.9 9.9 4.0

Source: Cinzia Alcidi and Daniel GrosIs: Is Greece different? Adjustment difficulties in southern Europe, Vox, 22 April 2010[1]

GDP growth

(per cent change on previous quarter)

2009 2010 2011
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Portugal -0,2  1.1  0.2  0.4  
Italy -0.1  0.4  0.5  0.2
Ireland -2.5  2.2 -1.2
Greece -1.1 -0.6 -1.7 -1.1
Spain -0.2  0.1  0.3  0.0
 Eurozone   0.2  0.4  1.0  0.4

(Source: Eurostat[2])