Economy of Greece

Economy of Greece
Currency	1 euro = 100 cents
Fiscal year	Calendar year
Trade organisations	EU, WTO, OECD and BSEC
Statistics
GDP	$343 billion (2008 est.)
GDP growth	-0.4% Q3/Q2 2009 and -1.3% Q3 2009/2008
GDP per capita	$32,000 (2008 est.)
GDP by sector	agriculture: 3.7%, industry: 20.6%, services: 75.7% (2008 est.)
Inflation (CPI)	0.5% (Jun 2009)
Population below poverty line	< 2.0% (2009)
Gini index	33 (2005)
Labour force	4.95 million (Apr 2009)
Labour force by occupation	agriculture (12%), industry (20%), services (68%) - 2004
Unemployment	7.7% (2008 est.)
Main industries	tourism; shipping; Industrial products, food and tobacco processing, textiles; chemicals, metal products; mining, petroleum
External
Exports	$29.14 billion (2008 est.)
Export goods	food and beverages, manufactured goods, petroleum products, chemicals, textiles
Main export partners	Italy 11.5%, Germany 10.5%, Bulgaria 7%, Cyprus 6.2%, US 5%, UK 4.7%, Romania 4.4% (2008)
Imports	$93.91 billion (2008 est.)
Import goods	machinery, transport equipment, fuels, chemicals
Main import partners	Germany 13.3%, Italy 12.8%, China 6.2%, France 5.6%, Netherlands 5.1%, Russia 4.7% (2008)
Public finances
Public debt	97.4% of GDP (2008 est.)
Revenues	$126.5 billion
Expenses	$144.4 billion (2008 est.)
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars

The economy of Greece is the twenty-seventh largest economy in the world by nominal gross domestic product (GDP) and the thirty-third largest by purchasing power parity, according to the data given by the International Monetary Fund for the year 2008. Its GDP per capita is the twenty-seventh highest in the world, while its GDP PPP per capita is the twenty-sixth highest. Greece is a member of the OECD, the World Trade Organization, the Black Sea Economic Cooperation, the European Union and the Eurozone.

The Greek economy is a developed economy with the public sector accounting for about 40% of GDP. The service sector contributes 75.7% of the total GDP, industry 20.6% and agriculture 3.7%. Greece is the twenty-fourth most globalized country in the world and is classified as a high income economy.

History

GDP Growth of Greece compared to the Eurozone between 1996 and 2006

The evolution of the Greek economy during the 19th century (a period that transformed a large part of the world due to the Industrial revolution) has been little researched. Recent research ^[1] examines the gradual development of industry and further development of shipping in a predominantly agricultural economy, calculating an average rate of per capital GDP growth between 1833 and 1911 that was only slightly lower than that of Western European nations. Other studies support this view, providing comparative measures of standard of living. The per capita income (in purchasing power terms) of Greece was 65% that of France in 1850, 56% in 1890, 62% in 1938,^[2][3] 75% in 1980 and 90% in 2007 ^{[4][verification needed]} , while it stood at 96.4% in 2008 according to CIA Factbook (September 2009 data). The post-WWII development has largely been connected with the Greek economic miracle.

In 2004, Eurostat, the statistical arm of the European Commission, after an audit performed by the New Democracy government, revealed that the budgetary statistics on the basis of which Greece joined the European monetary union (budget deficit was one of four key criteria for entry), had been massively underreported by the previous Greek government (mostly by not recording a large share of military expenses).^[5] However, even according to the revised budget deficit numbers calculated according to the methodology in force at the time of Greece's application for entry into the Eurozone, the criteria for entry had been met.^[6] Official Eurostat calculation according to the current methodology is still pending for the 1999 budget deficit (entry application reference year); according to the same calculations, the budget deficit criterion was met in 2006.

The Greek economy today

Greece is a developed country, with a high standard of living and "very high" Human Development Index, ranking 25th in the 2007 HDI,^[7], 22nd on The Economist's 2005 worldwide quality-of-life index^[8] and having the world's 28th highest GDP (nominal) according to the CIA World Factbook, that of $357.5 billion in 2008^[9]. According to Eurostat data, Greek PPS GDP per capita stood at 100.5 per cent of the EU average as of December 2009.^[10] Greece's main industries are tourism, shipping, industrial products, food and tobacco processing, textiles, chemicals, metal products, mining and petroleum. Greece GDP growth has also, as an average, since the early-90s been higher than the EU average.

However, the Greek economy also faces significant problems, including rising unemployment levels, an inefficient government bureaucracy and widespread corruption.^[11]

In 2009, Greece had the EU's second lowest Index of Economic Freedom (after Poland), ranking 81^st in the world.^[12] The country suffers from high levels of political and economic corruption and low global competitiveness relative to its EU partners.^[13][14]

Although remaining above the euro area average, economic growth will turn negative in 2009 for the first time since 1993.^{[15][verification needed]} An indication of the trend of over-lending in recent years is the fact that the ratio of loans to savings exceeded 100% during the first half of the year.^[16]

The Greek labor force totals 4.9 million, and it is the second most industrious between OECD countries, after South Korea.^[17] The Groningen Growth & Development Centre has published a poll revealing that between 1995 and 2005, Greece was the country with the largest work/hour ratio among European nations; Greeks worked an average of 1,900 hours per year, followed by the Spanish (average of 1,800 hours/year).^[18]

Maritime industry

The shipping industry is a key element of Greek economic activity dating back to ancient times.^[19] Today, shipping is one of the country's most important industries. It accounts for 4.5% of GDP, employs about 160,000 people (4% of the workforce), and represents 1/3 of the country's trade deficit.^[20]

During the 1960s, the size of the Greek fleet nearly doubled, primarily through the investment undertaken by the shipping magnates Onassis and Niarchos.^[21] The basis of the modern Greek maritime industry was formed after World War II when Greek shipping businessmen were able to amass surplus ships sold to them by the United States Government through the Ship Sales Act of the 1940s.^[21] According to the BTS, the Greek-owned maritime fleet is today the largest in the world, with 3,079 vessels accounting for 18% of the world's fleet capacity (making it the largest of any other country) with a total dwt of 141,931 thousand (142 million dwt).^[22] In terms of ship categories, Greece ranks first in both tankers and dry bulk carriers, fourth in the number of containers, and fourth in other ships.^[22] However, today's fleet roster is smaller than an all-time high of 5,000 ships in the late 70's.^[19]

Tourism

According to a survey conducted in China in 2005, Greece was voted as the Chinese people's number one choice as a tourist destination,^[23] and 6,088,287 tourists visited only the city of Athens, the capital city. In November 2006, Austria, like China, announced that Greece was the favourite destination.^{[24][dead link]}

References

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