PIGS (economics)
Encyclopedia
PIGS is an acronym used to refer to the economies of Portugal
, Italy
, Greece
and Spain
. Originally, the term was used to group these economies as being similar economic environments. Since the European sovereign debt crisis, with the addition of Ireland, the term is used to group European economies facing particular financial crisis
. Some news and economic organisations have limited or banned use of the term because of criticism regarding perceived offensive connotations.
referring to Portugal, Italy, Greece and Spain noted for similar economic environments. The term became popularized by the wider media during the European sovereign debt crisis.
The term was denounced as a pejorative
by the Portuguese Finance Minister in 2008. Members of the international economic press continue to use the term. However, some organisations, notably the Financial Times
(FT) and Barclays Capital
, have restricted or banned the term.
.
Additional permutations gained prominence during the 2009 United Kingdom bank rescue package
period and into the 2010 European sovereign debt crisis
as some commentators used numerous variations such as PIIGGS which includes Great Britain
for assorted political, economic, or social reportage and editorial
commentary.
Economy of Portugal
The Economy of Portugal is a high income mixed economy. The Global Competitiveness Report 2008-2009 edition placed Portugal in the 43rd position out of 134 countries and territories....
, Italy
Economy of Italy
Italy has a diversified industrial economy with high gross domestic product per capita and developed infrastructure. According to the International Monetary Fund, the World Bank and the CIA World Factbook, in 2010 Italy was the seventh-largest economy in the world and the third-largest in Europe...
, Greece
Economy of Greece
The economy of Greece is the 32nd largest in the world by nominal gross domestic product and the 37th largest at purchasing power parity , according to data by the World Bank for the year 2010...
and Spain
Economy of Spain
The economy of Spain is the twelfth-largest economy in the world, based on nominal GDP comparisons, and the fifth-largest in Europe. It is regarded as the world's 20th most developed country....
. Originally, the term was used to group these economies as being similar economic environments. Since the European sovereign debt crisis, with the addition of Ireland, the term is used to group European economies facing particular financial crisis
Financial crisis
The term financial crisis is applied broadly to a variety of situations in which some financial institutions or assets suddenly lose a large part of their value. In the 19th and early 20th centuries, many financial crises were associated with banking panics, and many recessions coincided with these...
. Some news and economic organisations have limited or banned use of the term because of criticism regarding perceived offensive connotations.
History
The term has been used since at least the mid-1990s as an epithetEpithet
An epithet or byname is a descriptive term accompanying or occurring in place of a name and having entered common usage. It has various shades of meaning when applied to seemingly real or fictitious people, divinities, objects, and binomial nomenclature. It is also a descriptive title...
referring to Portugal, Italy, Greece and Spain noted for similar economic environments. The term became popularized by the wider media during the European sovereign debt crisis.
The term was denounced as a pejorative
Pejorative
Pejoratives , including name slurs, are words or grammatical forms that connote negativity and express contempt or distaste. A term can be regarded as pejorative in some social groups but not in others, e.g., hacker is a term used for computer criminals as well as quick and clever computer experts...
by the Portuguese Finance Minister in 2008. Members of the international economic press continue to use the term. However, some organisations, notably the Financial Times
Financial Times
The Financial Times is an international business newspaper. It is a morning daily newspaper published in London and printed in 24 cities around the world. Its primary rival is the Wall Street Journal, published in New York City....
(FT) and Barclays Capital
Barclays Capital
Barclays Capital is a global British investment bank. It is the investment banking division of Barclays plc which has a balance sheet of over £1.2 trillion . Barclays Capital provides financing and risk management services to large companies, institutions and government clients. It is a primary...
, have restricted or banned the term.
Variations
With the onset of the Financial crisis of 2007–2010 several variations appeared. When rendered as PIIGS some commentators added the additional I for comparative purposes to include Ireland from the 2008–2010 Irish financial crisis, with alternatively the I which originally referred to Italy occasionally becoming an interchangeable reference to Ireland by some during this period. And GIIPS has also been for the same grouping. A variant with three Is, PIIIGS also has been used, where the three i's represent Italy, Ireland, and IcelandIceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...
.
Additional permutations gained prominence during the 2009 United Kingdom bank rescue package
2009 United Kingdom bank rescue package
A second bank rescue package totalling at least £50 billion was announced by the British government on 19 January 2009, as a response to the ongoing global financial crisis. The package was designed to increase the amount of money that banks could lend to businesses and private individuals...
period and into the 2010 European sovereign debt crisis
2010 European sovereign debt crisis
From late 2009, fears of a sovereign debt crisis developed among investors concerning some European states, intensifying in early 2010 and thereafter.....
as some commentators used numerous variations such as PIIGGS which includes Great Britain
Great Britain
Great Britain or Britain is an island situated to the northwest of Continental Europe. It is the ninth largest island in the world, and the largest European island, as well as the largest of the British Isles...
for assorted political, economic, or social reportage and editorial
Editorial
An opinion piece is an article, published in a newspaper or magazine, that mainly reflects the author's opinion about the subject. Opinion pieces are featured in many periodicals.-Editorials:...
commentary.
See also
- BRICBRICIn economics, BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development...
- BRICSBRICSBRICS is an international political organisation of leading emerging economies, arising out of the inclusion of South Africa into the BRIC group in 2010. As of 2011, its five members are Brazil, Russia, India, China and South Africa...
- EAGLEsEaglesThe Eagles are an American rock band formed in Los Angeles, California in 1971 by Glenn Frey, Don Henley, Bernie Leadon, and Randy Meisner.With five number one singles, six Grammys, five American Music Awards, and six number one albums, the Eagles were one of the most successful musical acts of the...
- CIVETSCIVETSThe CIVETS is an acronym for favored emerging markets coined in late 2009 by Robert Ward, Global Forecasting Director for the Economist Intelligence Unit . The term has also been used by HSBC's chief executive Michael Geoghegan...
- Credit crunchCredit crunchA credit crunch is a reduction in the general availability of loans or a sudden tightening of the conditions required to obtain a loan from the banks. A credit crunch generally involves a reduction in the availability of credit independent of a rise in official interest rates...
- 2010 European sovereign debt crisis2010 European sovereign debt crisisFrom late 2009, fears of a sovereign debt crisis developed among investors concerning some European states, intensifying in early 2010 and thereafter.....