Paul Krugman beat me to it. When the New York Times published graphs showing debt-to-GDP ratios, Greece, of course, was at the top, around 200 percent (see below), I suspected that the country’s output had taken a substantial hit, squeezing the ratio’s denominator. Krugman had also suspected as much, on which he commented here.
First the Times‘s graphs:
And now, Krugman’s chart:
In the chart below I compare Greece’s real GDP to both France and Germany’s.
As we can see, Greece is a relatively poor country. Yet, such disparity exists in the U.S. Below I compare the GDPs of Mississippi and New York:
New York’s GDP is 14 times greater than Mississippi’s. Germany’s economic output is about 15 times as large as Greece’s.