Worries about the fiscal and economic health of several European nations are continuing to cause concern for the global markets. How big of a threat is the full-blown sovereign debt crisis? James Moffett, portfolio manager of Scout International Fund, share his insights.
“We think Greece is in better shape than people give it credit for—their basic economy is percolating along,” Moffett told CNBC.
Moffett said Greece’s economic problem is a fiscal issue and the economy is in "reasonably good shape."
“In terms of the issue of devaluation—a lot of their business is shipping, hotels, and tourism,” he said. “Those prices have come down and they’ve already made adjustments to stimulate demand.”
Moffett said while Greece's budget is in poor condition, the new government has the ability to get appropriate legislations passed and change the tax structure.
"It’s going to be restrictive in the short-run, but we think Greece is going to be okay,” he added.
Meanwhile, Moffett said Spain’s economy remains a bigger challenge.
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No immediate information was available for Moffett or his firm.