Deutsche Bank analysts sent round a note on Thursday saying that Greece is “suffering a new exodus” of finance, as capital floods out of the crisis-hit country.
In the last six months, during which time it became clear that there would be an election and the previous centre-right government was replaced with the anti-austerity Syriza party, a huge chunk of people with money in Greece have been looking for the exits.
Here’s how it looks:
Greece’s financial account (which comprises things like direct investment and reserves) has plunged by more than 25% of GDP in six months. Those flows are pretty much evenly driven by foreign and domestic investors, both of which are heading in the same direction: Anywhere but Greece.
In the three months to February alone, Greece lost €45 billion ($US51.09 billion, £32.46 billion) in private finance. The relative steadiness of Greece’s private financial account since 2012 has been lost completely:
Here’s a snippet of the note, discussing just how much worse the Greek figures are than any other part of southern Europe:
The capital flow movements in Greece are altogether more negative in composition. Both foreign and domestic monies are leaving Greece. In the last 3 months (to February), EUR24bn of foreign private flows and EUR21bn of domestic private flows have exited Greece.