The Fairy Tale Of Portugal's Successful Turnaround
Submitted by Tyler Durden on 03/02/2015 - 13:54
Even a brief glance at the facts suffices. Portugal is no less bankrupt than Greece.
The country’s government debt, at 124% of GDP, might be lower than in
Greece. However, government debt is just one – even though important –
part of the full debt picture. On an aggregate level, Portugal’s overall debt level - at 381% of GDP when also including private households and non-financial corporations - is well above Greece’s total debt level (286% of GDP). So while Greece’s problems mainly manifest themselves via government debt, Portugal suffers from too much debt in all three sectors of the economy.