A BBC report presents in a beautiful set of graphs how interconnected the global economy is and who owes what to whom and also who is in trouble most? For more click here
GREECE, GDP: €0.2 tn Foreign debt: €0.4 tn, €38,073 Foreign debt per person, 252% Foreign debt to GDP, 166% Govt debt to GDP
Risk Status: HIGH
Greece is heavily indebted to eurozone countries and is one of three eurozone countries to have received a bail-out. Although the Greek economy is small and direct damage of it defaulting on its debts might be absorbed by the eurozone, the big fear is “contagion” – or that a Greek default could trigger a financial catastrophe for other, much bigger economies, such as Italy.
ITALY, GDP: €1.2 tn Foreign debt: €2 tn, €32,875 Foreign debt per person, 163% Foreign debt to GDP, 121% Govt debt to GDP
Risk Status: HIGH
Italy has a large amount of debt, but it is a relatively wealthy country compared with Greece and Portugal. However, doubt about Italy’s leadership and fears that its debt load could grow more quickly than the Italian economy’s capacity to support it have left the markets jittery. France is most exposed to Italian debt.
FRANCE, GDP: €1.8 tn Foreign debt: €4.2 tn, €66,508 Foreign debt per person, 235% Foreign debt to GDP, 87% Govt debt to GDP
Risk Status: MEDIUM
Europe’s second biggest economy is greatly exposed to the eurozone’s troubled debtors. Its banks hold large amounts of Greek, Italian and Spanish debt. This is causing market turbulence, especially against a backdrop of faltering French growth and low consumer spending.