n the individuals who are willing to provide financing to Greece. Any new debt that will be issued by Greece over the free market will be at punitive interest rates which will lead to further harm for the country. Unlike other nations, Greece is unable to reduce the debt burden by printing currency which allows a nation to repay its debt at any moment. Printing additional currency triggers inflation, but provides liquidity which can drive economic growth. Managing the appropriate amount of inflation to introduce into a currency is difficult to engineer, though Greece does not have this option as a result of their inclusion in the Euro Zone. As currency is printed by the Euro zone in general, many nations have to vote for increases in the supply of the Euro in order to assist Greece with additional inflation. However, inflationary increases will harm countries that have higher degrees of savings and own Greek bonds, such as Germany.
Economic sentiment has improved in Greece as a result of an over 50 billion Euro loan that has been promised to be lent to Greece. The 50 billion Euro loan is set to be received before March 2013. This loan will help Greece meets its current obligations. However, there are stipulations associated with this loan that has been dubbed austerity provisions that centers around decreases in pensions and salaries for governmental employees.
Despite this loan, Greece's economy is still in tatters with approximately 26% of the population labeled as being unemployed. For those aged from 15 to 24 the unemployment rate is above 50% with further increases in unemployment likely to hit.
Certain industries in Greece have been experiencing incredible declines. The worst sector over the past five years has been the construction industry. The recession in the construction industry is currently entering its six year.
As a result, in total, Greece's economy has been progressing in certain ways. A recent Euro zone loan is likely to provide liquidity to the country and help to guarantee that Greece will be able to meet its fiscal obligations. However, the economic malaise continues in Greece as high unemployment and limited fiscal prospects continues to haunt the nation.