The Economy of Modern Greece

Some of the Facts

• GDP (PPP) $305,595 billion (2006) GDP growth 3.6%

• GDP per capita $33,004 (2006)

• GDP by sector agriculture (5.1%), industry (20.6%), services (74.4%) - 2006

• Inflation (CPI) 3.9% (Jan 2008)

• Population

• below poverty line 9.2% (2003)

• Labour force 4.92 million (Nov 2007)

• Labour force

• by occupation agriculture (12%), industry (20%), services (68%) - 2004

• Unemployment 7.6% (Nov 2007)

• Main industries tourism; shipping; food and tobacco processing, textiles; chemicals, metal products; mining, petroleum

• Exports $24.42 billion

• Main export partners Germany 13.2%, Italy 10.3%, UK 7.5%, Bulgaria 6.3%, U.S. 5.3%, Cyprus 4.6%, Turkey 4.5%, France 4.2% (2004)

• Imports $59.12 billion (2006 est)

• Main import partners Germany 13.3%, Italy 12.8%, France 6.4%, Netherlands 5.5%, Russia 5.5%, U.S. 4.4%, UK 4.2%, South Korea 4.1% (2004)

The Geography of Greece

• The Greek mainland is mostly mountainous with many valleys, surrounded by mountains with small rivers running through.

• Most valleys are warm and well watered

Greek Islands

• The smaller islands are mostly barren with little or no water, and stunning landscapes.

• The big islands, by contrast are very green and well watered.

• The sea has provided the main source of income through the centuries

The impact upon the economy

• From antiquity agriculture had limited potential, which has encouraged commerce and use of the sea.

• Agricultural products in the Greek valleys tend to be destined for the higher end of the market, not mass production.

• The land alone was never able to sustain its populations which encouraged sea-faring, trades and industry through the centuries.

The Climate

• Mediterranean

• Short winters, cold with snow in the mountains, mild in the valleys provide good irrigation

• Hot dry summers favor typically Mediterranean vegetation (Olive groves and vineyards)

Agriculture

• Olive trees, vines, beet roots, citrus trees, vegetables, fruit.

• Animal farming tends to be organic, free-range (sheep, goats, cows, pigs, chickens, turkeys, trout)

• Genetically engineered crops are out of the question. All Europeans detest them.

Fishing

• Fishing was an important economic resource especially in poorer small island communities.

• Strict EU rules and quotas have reduced the fishing industry, but still you can find good fresh fish

Sea travel and transport

• The largest contributor to Greek economy, even higher than tourism and agriculture.

• The key position of the country allows easy access to Europe, Middle East, North Africa and the Black Sea. The Greek commercial fleet is approximately 10% of the world’s fleet.

Tourism

• An important industry which has breathed new life in previously desolate communities.

• Most people head for the endless coastline and more than 4000 islands

• The Greeks head for the mountains and the green lake landscapes of the north and north west

Cultural Tourism

• An important contributor to the economy and image of the country.

• However, a costly business.

• The Ephorates of Classical (Ancient Greek and Roman) and Byzantine/PostByzantine (Byzantine, Arab, Ottoman, Venetian, Neoclassical) antiquities are powerful bodies which can affect or stop any building or development project.

Real Estate Market

• Comparable in prices and pace of development to Florida.

• Housing in hot tourist spots and the coastline is expensive. Housing in good areas of the cities also expensive. Modest prices in less touristy spots and the working-class suburbs of the big cities.

• Recent styles favor traditional Byzantine or Island architectural modes. The cities mostly have a more utilitarian style. Reinforced concrete is used in most city multiple housing, according to strict earthquake codes

Education

• Obligatory from 5-15 years, and free at all levels.

• Preschool 1-2 years (starting at 4-5)• Primary School, 6-12 years olds• Lower Secondary (Gymnasium), 12-15• Upper Secondary (Lycaeum), 15-18• College, State Universities, 18<• Generally a highly educated workforce

Healthcare

• National Health Service, ESY (free)• Private Insurance (Work Contributions)• Private Clinics and Doctors• The healthy Mediterranean diet (olive oil,

vegetables, low meat and butter intake, fewer industrialized and canned foods, little taste for fatty, sugary foods), combined with a more relaxed outdoors lifestyle results in healthier, and longer-living populations.

Crime

• Traditionally crime levels have been very low.

• 92% of Greeks have faith in their legal system (the highest percentage in Europe), and they are the most law-abiding Europeans.

• A traumatic relationship with the police during the dictatorship has resulted in strict controls over police authority

• In recent years the influx of economic immigrants from Eastern Europe has caused complaints over rising crime.

Industry and High Tech

• Greek industry has been only moderately successful, the primary reason being that industry work does not fit well with the psychosynthesis of the average Greek worker.

• High Tech is catching up fast, favored by a highly educated population and the curious nature of the Greeks.

Summary

• Strengths: an educated population, inquisitive nature, outward looking, good relations with most nations, an excellent geographical position, a good international image.

• Weaknesses: (until recently) a large public sector, dislike of industrial conditions, too much of a good lifestyle, limited natural resources.