An economy just entered the club of emerging markets. The term 'emerging' brings to mind a fast growing developing economy, right? But this is not the case with the economy under consideration.
The country we are referring to is none other than the crisis-struck economy of Greece. As per Bloomberg, Greece has been downgraded to emerging-market status by index provider MSCI Inc. This is the first time ever that a developed nation has been downgraded to a lower status. Just to recall, Greece had been elevated to the developed-market status in 2001 by MSCI. But the sovereign debt crisis that engulfed the nation in the last decade crippled the country's economy. The benchmark ASE index has plunged 83% since October 2007.
The downgrade is likely to make matters worse for Greece. It could further lead investors to dump the country's stocks. Greece's condition is a clear proof of the status of progress in the Eurozone. The crisis is still far from over.
The country we are referring to is none other than the crisis-struck economy of Greece. As per Bloomberg, Greece has been downgraded to emerging-market status by index provider MSCI Inc. This is the first time ever that a developed nation has been downgraded to a lower status. Just to recall, Greece had been elevated to the developed-market status in 2001 by MSCI. But the sovereign debt crisis that engulfed the nation in the last decade crippled the country's economy. The benchmark ASE index has plunged 83% since October 2007.
The downgrade is likely to make matters worse for Greece. It could further lead investors to dump the country's stocks. Greece's condition is a clear proof of the status of progress in the Eurozone. The crisis is still far from over.
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