BRIC vs PIGS
I was at a lunch recently with about 10 people. One of the participants was an analyst from Portugal -- smart guy, delightful accent.
The table was discussing the BRIC countries -- what a tiresome acronym THAT has become -- and our Portuguese pal mentioned the PIGS countries.
PIGS? What the heck is a PIGS?
It turns out that PIGS stands for Portugal, Italy, Greece & Spain -- P.I.G.S.
Why so crude an acronym? They are all in, or on the verge of tumbling into, a recession. Their significance is that they are the soft white underbelly of Europe. While not as economically important as Germany or England or even France, they are still a substantial chunk of nations, consumption and output for Europe. Our dashing Portuguese analyst expects their slowdown to spread to the rest of Europe.
PIGS: Now you know.
>
UPDATE: July 9, 2008 11:09AM
I am aware of the dispute between whether Italy or Ireland is part of the PIGS. I am going to defer to the Economist magazine, which notes:
One danger is that fractures within the euro area will distract the ECB from staying on top of inflation. A particular worry is what could be called the PIGS—Portugal, Italy, Greece and Spain, Europe's negative version of the fast-growing BRICs. The fear is that these countries may be in a hole they cannot easily climb out of and that the ECB will be pressed into running a looser monetary policy to save them.
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Wednesday, July 09, 2008 | 09:15 AM | Permalink
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Comments
mmmmmm, bacon!
Posted by: scorpio | Jul 9, 2008 9:47:55 AM
Pedant mode on (apologies in advance).
There is a difference between England and the UK and it annoys the Scots, Welsh and Northern Irish immensely when people refer to England when they mean the UK.
Economically, Scotland, Wales and Northern Ireland contribute the square root of bugger all to the UK economy so in reality the UK economy == the English economy, but just to make them feel included it's often nice to refer to the UK rather than just England.
PIGS! Kudos to whoever came up with than acronym!
Posted by: Peter | Jul 9, 2008 9:54:33 AM
Pardon me, sirs
but do you think that UK, with a bloating financial sector, an housing market tumbling, without a significant industrial base, with North Sea Oil peaked, is in a better shape? (not to mention the U.S. troubles).
I suspect that the PIGS are more than four (and the number is growing....)
Posted by: PP | Jul 9, 2008 10:04:31 AM
I had a boss once who referred to these countries as "The Garlic Belt" but I suppose acronyms are the current in thing.
Posted by: Ed | Jul 9, 2008 10:17:00 AM
The PIGS were against the rate hike by the EU. However they grew faster than the industrial countries due to the real estate boom for second homes in sunny climates.
Once that bubble burst the PIGS wanted to be bailed out but no such luck.
I would prefer an interest rate policy that protects the industrialized countries of the EU rather than a weak monetary policy to correct a bubble.
Posted by: Organic George | Jul 9, 2008 10:22:04 AM
Technically, PIGS stands for Portugal, Ireland, Greece and Spain - it was the "nickname" given to the 4 countries that received the biggest chunk of EU funding for development purposes.
As for the spreading of PIGS crisis to the rest of the EU, I disagree with my fellow countryman: we are talking about countries that suffered from housing market bubbles and structural problems, but only accounts for 15% of EU 2007 GDP.
Posted by: Guilherme Diaz-Bérrio | Jul 9, 2008 10:35:28 AM
Lucky the PIGS countries didn't include Malta. Might have ended up with GIMPS...
Posted by: Paul Parkinson | Jul 9, 2008 10:36:14 AM
or Poland, it could have been PIMPS.
Posted by: rexl | Jul 9, 2008 11:00:26 AM
And I always it was Palau, Indonesia, Gabon and Suriname...
Posted by: JL | Jul 9, 2008 11:03:12 AM
These comments are getting silly. Which probably explains why I keep reading them!
Posted by: Sentimental | Jul 9, 2008 11:08:50 AM
The EU rate hike will hurt (my mortgage payment will go up), but it'll keep the Euro strong, and inflation contained. In Spain, the recession has already started, but there will be no banking crisis--regulations prevent banks from selling mortgage-based securities.
Posted by: Charlie | Jul 9, 2008 11:12:25 AM
Man crush, maybe?
Posted by: Bud | Jul 9, 2008 11:43:36 AM
BR, how bout iPigs? Ireland, Portugal, Italy, Greece, Spain.
Solves the problem, plus gives a web 2.0 touch...
Posted by: joe | Jul 9, 2008 11:46:37 AM
PIIGS?
Posted by: drew | Jul 9, 2008 12:04:29 PM
Now we just need acronyms for WOLF, STRAW and STICKS and we'll have a complete Little Red Riding Hood.
Posted by: STS | Jul 9, 2008 12:30:54 PM
er ... the Three Little PIGS? Some fairy tale or other. Need to borrow a copy of Grimm's.
Posted by: STS | Jul 9, 2008 12:32:01 PM
I take it the intent is to create an acronym as irritating (and pointless) as BRIC? Italy is a stretch. According to the numbers it is always a banana republic but under the surface it is anything but a "pig". New bullet trains, amazing technological innovation, an underground economy far exceeding the impressively large reported economy, very high standard of living, etc. It's a stretch methinks.
Posted by: Sinomania! | Jul 9, 2008 12:35:39 PM
Greece doesn't have the massive mortgage credit problem other countries (like Spain) do, but they do have ridiculous consumer credit bubbles that are bursting right now (credit cards, auto loans, etc.).
Posted by: L'Emmerdeur | Jul 9, 2008 12:50:52 PM
sounds about as logical as putting up a rocket defense shield in the Czech republic.....or signing an agreement to put 6 nuclear reactors in saudia arabia where it is sunny for well over 300 days a year....
Sorry wrong thread.....
Ciao
MS
Posted by: michael schumacher | Jul 9, 2008 1:07:57 PM
iPIGS is nice, but the formulation PIIGS is already in wide circulation (in honor of Ireland's problem with sub-prime). Lacks a certain je ne sais quoi...It's not to early to start planning for further entries. FIGPIGS anyone?
Posted by: John F. | Jul 9, 2008 1:18:03 PM
For the unwashed, such as myself, BRIC stands for "Brazil, Russia, India, and China".
Posted by: Joe | Jul 9, 2008 1:20:15 PM
"The PIGS were against the rate hike by the EU. However they grew faster than the industrial countries due to the real estate boom for second homes in sunny climates.
Once that bubble burst the PIGS wanted to be bailed out but no such luck."
So they're the European equivalent of Florida, Arizona, Nevada, and California, or FANC?
We need more state group nicknames.
Posted by: rj | Jul 9, 2008 1:35:32 PM
Hey, rj, I represent that! But it's better here in Arizona than back when I lived in PIMONY (Pennsylvania, Indiana, Michigan, Ohio, New York), formerly known as the rust belt.
Posted by: Brendan | Jul 9, 2008 1:50:04 PM
Please don't forget the BIG PIGS: Britain, Italy, Germany + the little PIGS.
Posted by: Aurora Borealis | Jul 9, 2008 1:54:24 PM
To the person who thinks there will be no "mortgage crisis" in Spain. Dream on. The Spanish housing market is going to crash harder than anywhere else in Europe, and it will take the banks with it. That they didn't sell the mortgages will make it worse for them, not better.
Not to mention that many mortgages were loaned out by non-Spanish banks, which *did* securitize them.
Posted by: Jim D | Jul 9, 2008 1:56:19 PM
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