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How the Greek Crisis May Affect Your Business

The debt crisis in Greece has had the world on edge all summer. Markets and businesses all over the world are preparing for all possible results. No one really knows how the Greece debt crisis will affect the economies of other countries, but global economic experts have targeted several major economies to see how the debt crisis might hurt countries with large and influential populations. The countries of Chile, China, Hong King, Brazil, and Germany are discussed.

Little to No Impact

The Greek debt crisis, most experts believe, will have very little effect on the Brazilian economy or on the economies of Hong Kong and China. This is because Brazil’s economy has been systematically separated from Greece almost altogether, a process that began in the 1990s. Therefore it seems that what happens in Greece will have little impact on Brazil. As for Hong Kong and China, they too foresaw that Greece might fall into debt once again. Over the past several years, both have had their investors and financial institutions stay a healthy distance away from the country. This almost neutralizes the default risk on debt for them.

Moderate Impact

Chile may feel some ripple effects of the Greek crisis. Chilean exports to Greece only make up 0.2%, and imports from Greece make up 0.03% of total Chilean imports. But there could be more intense indirect effects. It is a real possibility that Greek debt could cause weakness in the euro which could affect the strength of the Chilean peso, and may increase inflation in the country.

High Impact

Germany may be significantly impacted by Greek default. First off, billions of Euros have already been invested in the ECB, therefore taxpayers could stand to lose a lot. Most political analysts say the Europe will be looking to Germany’s leadership for guidance as to how to response in the face of the crisis. Plus there is significant political pressure to keep Greece using the euro. It is paramount to slow down default or do whatever it takes to stop it, as the EU faces other crises’ like tensions between Russia and the NATO, and war in the Ukraine. One more major blow would put an incredible amount of strain on Germany and the rest of Europe.

How the Greek crisis will affect America is yet unknown. Still since the global and U.S. economy have rebounded, it’s still a good time for solid small businesses to become established. However, the last recession may have given otherwise good business owners bad credit. First American Merchant is the online lender that will give your small business a cash advance with bad credit.

Contact FAM to learn more about our easy loan options and cash advances for merchants today.