Could What's Happening In Greece Be Contagious?

A Greek default and exit from the eurozone probably would have limited effects on the region and global economy because of new financial safety nets and European nations' improving fortunes, analysts say.

The growing prospect of a Greek exit from the euro currency shook markets Monday. The Dow Jones industrial average plunged 350 points, or nearly 2%. The reality of such an outcome probably would be far more benign.

"It's the uncertainty that is rattling" markets, says Nariman Behravesh, chief economist of IHS Global Insight.

"Countries' finances are on a much stronger basis," than they were when Greece teetered near a eurozone exit five years ago, Italian Finance Minister Pier Carlo Padoan said in an April interview with USA TODAY.

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Greece is a relative flyspeck in the global economy. It represents about 2% of Europe's economy, or roughly the gross domestic product of Connecticut.

The biggest fear is that a so-called Grexit would foment fears of similar moves by anti-austerity activists in countries such as Italy, Portugal and Spain. That probably would drive up interest rates and borrowing costs in those countries, hobbling their budgets and economies.

That, in turn, could pummel the earnings and shares of U.S. multinationals with significant sales in the eurozone.

Here's why the damage is likely to be contained:

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