Relation of Current Account Deficit with Sovereign Debt Crisis in Greece Economy

The Greek debt crisis that started in the autumn of 2009, created unprecedented challanges to both Greece and the European Union (EU). Greek economy had high level current account deficit level since 1980s, and continued until the fourth quarter of 2009. The current account deficit became a nightmare not just for itself, but also for the EU raising uncontrollabe levels when the subprime mortgage crisis emerged in the U.S. mortgage markets became a global crisis in 2009. At the end, soverign debt crisis in Greece exploded in 2009. In this paper, the relation of current account deficit with soverign debt crisis in Greece Economy is discussed.