An Introduction To The PIIGS
Posted: Jan 25, 2012
PIIGS is an acronym, similar to others like BRICS and EAGLES, that defines a certain group of countries that have some commonality in location and economic environments. In this case, PIGS includes Portugal, Italy, Greece and Spain. While not originally included in the group, Ireland has found its way into the mix, which is why the term PIIGS is more commonly used now.
TUTORIALS: Macroeconomics
All of these countries are part of the eurozone and have been grouped together with the unflattering acronym of a barnyard animal known for its proclivity to mud, dirt and not-so- pleasant smells. The term itself is not an official title, nor does it separately delineate these countries from the European Union (EU). The term became a convenient way for currency traders and global investors to group these countries together. It has lived on as a club, of sorts, that no country would want to join and each participant would like to quit.
While primarily concerned with resolving their economic struggles, the members of the PIIGS resent the negative connotations and some have renounced the use of the term altogether. Though each member has become a staple of the media's attention, many professional organizations have made efforts to reduce or eliminate the term itself due to its negative connotations. Their efforts are commendable; however, there is no mistaking that these countries have a history of facing economic difficulties, high unemployment and political instability. While some of their individual GDP growth rates are surprisingly impressive, most of it was financed, leaving these countries with heavy debt burdens. Consider the following information about each component of the PIIGS.
Portugal
Located on the tip of Spain in Southern Europe, this country ranks as the 14th largest economy in the European Union. Hosting