ECON 1016 – Macroeconomics 1 Policy Brief Project Assignment Group 125 Lecturer/Tutor name Saminathan Malayandi Lecture/Tutorial day and time ECON 1016 – LF02 Tuesday 12.00pm- 3.00pm All members should agree with the following contribution weights to the group assignment. Group members Only one submission per group Student name Student number % contribution (must add up to 100%) Signature (take a picture of a signature and paste here) Final mark (tutors only) BONG WEE LOONG* S3771788 25% TAN GUO YI S3772768 25% DANN CHIA RONGYAO S3771847 25% PEK JUN HAO S3772536 25% 1
Please indicate using * in student name who will be submitting the assignment in Turnitin (in Canvas) on the group’s behalf. Part A Name of country: Greece Indicator 1: Unemployment Rate (Long Term) Comments and observations According the chart above, Greece unemployment rate did not stop rising until 2013 whereby they reached the highest unemployment rate, 28%. It is also the highest unemployment rate in the euro zone since the financial crisis hit Greece. From year 2014, Greek National Reform Programmed and public employment service came out with policies to improve labor market outcomes and to boost job creation. However, over these years it has not improved much despite having these policies, the unemployment rate in Greece still remains high, 18%. Unemployment Rate (Short Term) Comments and observations As recession hits Europe (Greece), sales and revenues would be affected. For the business to be able to sustain, cost has to be readjusted, cut back on hiring new staffs or even freezing hiring, 2
wages would cut down and retrenchment. From the graph above, it shows the unemployment data for year 2018, which has high and unstable unemployment rate. When business cycle is low, cyclical unemployment increase, resulting in a constant growth rate of high unemployment rate as seen from the diagram. Indicator 2 : Government debt (Long Term) Comments and observations We can observe that there is a sudden increase in national debt from 2009 to 2012, that is when the government of Greece find out that the budget deficit is double the previous government’s estimate. In 2012, Greece manage to loan funds from other countries in the Eurozone to repay its high debt. However, it was a short-term solution and we can see that the debt started to raise back again. The increasing and high debt to GDP ratio indicates that the country might have problems to repay its debt causing investors to lose confidence to invest in the country. When the debt is greater than how much the country has produced in a whole year, the country will find it difficult to sustain its economy and cause uncertainty and losing confidence amongst investors.
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