The Economy of Modern Greece

1. The Economy of Modern Greece

2. 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) Some of the Facts

3. 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

4. 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

5. 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.

6. 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)

7. 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.

8. 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

9. 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.

10. 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

11. 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.

12. 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

13. 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

14. 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.

15. 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.

16. 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.

17. 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.