Greece, Puerto Rico And China Not That Different Over Long-Term, Macquarie Warns

With the potential for a Greece exit from the Eurozone looming large, Macquarie Research analyst Viktor Shvets released a report on Monday comparing the situation in Greece to the economic situations in China and Puerto Rico. In the report, Shvets addressed concerns that Greece’s economy may be only the first in a series of global dominos to fall.

Puerto Rico

According to Shvets, Greece and Puerto Rico share several concerning key traits. First, both countries are inefficient and uncompetitive in the global market. Second, the political and business worlds of both countries are mired in favoritism and corruption.

Third, both countries have massive public sectors. Fourth, due to the reasons described above, both Greece and Puerto Rico have massive, unstable debt burdens. And finally, neither country has an independent monetary policy.

China

While China and Greece may not have much in common to the casual observer, Shvets points out…

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