Economic Trends/Outlook in Greece
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.
|GDP (billions USD)||327.33||305.42e||310.37e||313.51e||320.23e|
|GDP (Constant Prices, Annual % Change)||-2.0||-4.5e||-3.0e||1.1e||2.1e|
|GDP per Capita (USD)||29,328||27,302e||27,716e||27,970e||28,540e|
|General Government Balance (in % of GDP)||-17.5||-9.5e||-6.0e||-5.0e||-3.8e|
|General Government Gross Debt (in % of GDP)||126.8||142.0e||152.3e||157.7e||157.0e|
|Inflation Rate (%)||1.4||4.7e||2.5e||0.5e||0.7e|
|Unemployment Rate (% of the Labor Force)||9.4||12.5e||14.8e||15.0e||14.5e|
|Current Account (billions USD)||-37.10e||-31.49e||-25.98e||-24.35e||-|
|Current Account (in % of GDP)||-11.2e||-9.7e||-8.1e||-7.5e||-|
Source: IMF - World Economic Outlook Database
Note: (e) Estimated Data
Main Sectors 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.
|Breakdown of Economic Activity By Sector||Agriculture||Industry||Services|
|Employment By Sector (in % of Total Employment)||11.4||21.8||66.8|
|Value Added (in % of GDP)||3.1||17.5||79.3|
|Value Added (Annual % Change)||9.8||-6.0||-1.0|
Source: World Bank - Last Available Data.
Indicator of Economic Freedom
- Moderately free
- World Rank:
- Regional Rank:
Sources of General Economic Information
Ministry of development
Ministry of agriculture
Ministry of national economy
Ministry of commercial shipping
- Statistical Office
The National Statistical Service of Greece
- Central Bank
Central Bank of Greece
- Stock Exchange
- Other Useful Resources
Export Credit Insurance Organization (ECIO)
- Main Online Newspapers
Greek News on Line
- Economic Portals
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