Greece

Economy

Main article: Economy of Greece

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Greece has a mixed capitalist economy with the public sector accounting for about half of GDP. Tourism has great importance, providing a large portion of GDP and foreign exchange earnings. Greece also counts as a world leader in shipping (first in terms of ownership of vessels and third by flag registration) http://www.marad.dot.gov/MARAD_statistics/Country-MFW-7-04.pdf. Greece figures prominently as a major beneficiary of EU aid, equal to about 2.4% of its GNP. The export of manufactured goods, including telecommunications hardware and software, foodstuffs, and fuels accounts for a large part of the rest of Greek income.

Related Topics:
GDP - Tourism - Shipping - EU

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The economy has improved steadily over the last few years, as the government tightened fiscal policy in the run-up to Greece's entry into the Eurozone on January 1, 2001. Average per capita income in 2004 was estimated at $22,000 http://www.worldbank.org/data/databytopic/GNIPC.pdf. Greece has an expanding services sector and telecommunications industry and has become one of the largest investors in the immediate region. Moreover, Greece now operates as a net importer of labour and foreign workers (mainly from Eastern Europe, the Middle East, Pakistan, and Africa). People from these areas now account for 10% of the total population.

Related Topics:
Eurozone - January 1 - 2001

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Major challenges faced by the country include the reduction of unemployment, privatising of several state enterprises, social security reforms, overhauling the tax system, and minimising bureaucratic inefficiencies. Forecasts predicted economic growth of 4 - 4.5 % in 2004. Reducing the government deficit also remains a major issue, as it is currently running at nearly twice the Eurozone target of 3% of GDP. The new conservative government revealed to Eurostat that the previous figures supplied, which were the basis of Greek entry into the Eurozone, were incorrect. Under a negotiated agreement, the EU gave Greece two years (budgets of 2005 and 2006) to bring the economy in line with the criteria of the European stability pact.

Related Topics:
Unemployment - Privatising - 2004 - GDP - Eurostat - Incorrect - European stability pact

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The Bank of Greece, now a subsidiary of the European Central Bank, functions as the nation's central bank. This bank is not the same as the "National Bank of Greece", a commercial bank.

Related Topics:
Bank of Greece - European Central Bank - National Bank of Greece

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