Ελλάδα

Capital: Athens

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

Exchange rate on :

GDP growth rate: 1.500% in 2013

FDI inward stock: 33 559 million USD in 2010

Country risk: See the country risk analysis from Greece provided by Ducroire.

Economic trends

Although the crisis hit Greece later than its European neighbors, it nevertheless plunged the country into a deep recession. Greece had to be saved from bankrupcy by the International Monetary Fund (IMF) and the European Commission (EC), however the budgetary restriction measures adopted to restore public finances have taken their toll on growth. The latter was estimated at -4% in 2010. The country recently announced that its deficit would be "very likely " higher than its forecast of 9.5% of GDP. This will have a worsening impact on the debt, currently estimated at 142.5% of GDP. For the foreign observers the Greek economy should not recover before 2012 and only if the country fully implement the restructuring program of its economy.

The government is making an effort to pursue the measures planned in the structural reforms program to which it is bound by the loans it has received from the IMF and the EC. The priority is to reduce the fiscal deficit by increasing taxation, privatizing public companies and reforming the healthcare system.

The country is facing growing unemployment (which is higher than 10%) and a proliferation of social protest movements against the austerity measures.

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. The main sectors are: electronic goos, transport materials, clothing and construction. More specifically, Greece is the largest European shipowner.

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. Marine fishing represents 10% of the GDP.

International trade

Greece has an export-oriented economy, trade representing more than 50% of the GDP. The trade balance is negative and has worsened as an effect of the fall in exports caused by the recession. However, the Greek Minister of Finance recently stated that the figures for the first quarter of 2011 showed a significant recovery in exports.

Greece's main trading partners are the European Union (especially Italy and Germany) and the United States.