1. Economic crisis
&
private sector

2. What is economic crisis?
A situation in which the economy of one or multiple countries experiences a sudden downturn.
Usually the supply of money is outpaced by the demand of money.

3. Forms of economic crisis
Banking crisis (When a bank suffers a sudden rush of withdrawals by depositors)
Speculative bubbles and crashes (A speculative bubble exists in the event of large, sustained overpricing of some class of assets)
Wider economic crisis (A coexistence of different financial aspects)

4. Causes of economic crisis
Easy credit conditions (encouraged high-risk lending/borrowing practises)
International trade imbalances
Real-estate bubbles
Fiscal policy choices (relative to government revenues/expenses)

5. Consequences of economic crisis
Falling GDP (Gross Domestic Product)
Drying up of liquidity
Rise of prices

6. What is the private sector?
The part of the economy that is run by private individuals or groups and is not controlled by the state.

7. Private sector in Greek economy
Mostly small to medium businesses unable to produce at high rates.
Minor involvment in GDP
Minor cause in the erupted economic crisis

8. Results of crisis in Greek private sector
Low-productivity businesses closed. (mostly family businesses)
Insufficient funds/raw materials businesses tend to minimize leading to future closure.
Rise in unemployment of more than 25% over the first 12 months reaching high 40%->50% during the current period.

9. Positive aspects on private sector due to economic crisis
Higher productivity from remaining businesses
Minimum wage decrease led to hiring people willing to produce at that level.
Better quality (?) & more controlled price market (?)

10. CHARTS

11. Domestic credit to private sector (%)

12. Greece business confidence