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Look at this link:

http://www.marketwatch.com/story/greeces-revised-2009-deficit-tops-15-of-gdp-2010-11-15

In November of 2010, the numbers for Greece were revised to the current number that you have.

Yet Greece's bailout plan had already been instituted for many months prior to that on the assumption that Greece's debt to GDP was 115%. The "Greeks were lying" story was also out based on the idea that their debt to GDP was at 115%. Indeed, in the Eurostate report of January 8, 2010 which went into excruciating detail on Greek statistics, and how screwed up they were, the numbers had been revised up to 115%.

The yearly budget deficit at the time was considered to be in the 11% range.

It was only AFTER the degree of recession (+5%) was determined in combination with the revised budget deficit (+15%) in late 2010, that the debt to GDP number was revised to 127%.

The "Greece lied about statistics" story came out long before that when the depth of the recession in Greece and the budget deficit was not fully known. I would submit however that these numbers are all moving targets and what needs to be known is the actual GDP rises and falls and total deficit rises and falls. With a 5% contraction in GDP, your debt is going to look much worse than it did a year earlier even if you haven't added to it much.

by Upstate NY on Sun Nov 27th, 2011 at 01:26:39 PM EST
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