A note on Greece’s net investment position

The extent of the crisis the Greek economy has been experiencing has raised questions about the fundamental factors that led to the massive recession and the sovereign bankruptcy. The role of debt, both public and private, has been discussed extensively as a key factor which has intensified the problems the Greek economy is facing. Additionally, accumulated deficits of the current account (manly trade deficits) were also pivotal, reflecting the anaemic capabilities of the Greek economy to export traded goods. The latter is mainly due to the underdeveloped manufacturing sector.