Greece

Capital: Athens

Local time:
It is %T:%M %A in Athenes

GDP growth rate: 0.2% in 2012

FDI stock: 44 927 million USD in 2009

Economic trends

Greece realigned its economy to face competition from the other EU countries and its economy has showed continuous growth over several years. This is partly due to EU subsidies, especially those linked to the Athens 2004 Olympic Games (which represented 3.6% of its GDP in 2004). However, growth decreased in 2008 because of the global economic crisis, even though the financial sector has remained solid and domestic demand has been maintained. Activity has decreased in 2009 because of the drop in exports, and will only recover in 2010. Public debt, inflation and unemployment (whose level is nearing 10%) are above the Euro zone average.

Despite the authorities' adjustment efforts, a new deterioration of public finances is expected in 2010 because activity will suffer the after-effects of the recession. The high level of the public debt and the repeated budgetary overflows, limit the manoeuverability of the discretionary budgetary recovery measures.

The Greek economy has several challenges to take on in the coming years: lower the public debt and unemployment levels, increase the basis for taxation and reduce tax fraud. New retirement and health reforms are also vital.

Main branches of industry

Traditionally, the Greek economy is based on agriculture. The sector represents 3% of the GDP and employs around 12% of the active population. The main crops are tobacco (largest European producer) and cotton (fifth largest exporter in the world). Greece also has a significant ovine livestock. A large fishing industry is found in coastal regions and the merchant navy represents 10% of the GDP.

Thanks to the economic diversification led by the country, industry has replaced agriculture as a second source of income, behind services, and accounts for around 20% of the GDP. More specifically, Greece is the largest European ship owner.

Growth in the tertiary sector is booming. It accounts for nearly three-fourths of the GDP. Tourism provides a vital source of income and alone contributes 11% of the GDP.

International trade

Greece has an export orientated economy. However, export levels remain low and will probably lessen in the course of the coming years. This would increase the already substantial trade deficit.
Services are mostly made up of exports (maritime transportation, tourism, financial services, immigrant foreign currency remittances, etc).