Greece

Economic and political outline

Economic indicators | Foreign Trade in figures | Sources of economic information | Political outline

Economic indicators

Greece has realigned its economy to face competition from the other EU countries and its economy has shown continuous growth for several years now, thanks to huge subsidies from the EU especially those linked to the Athens Olympic Games in 2004 (which represented 3.6% of GDP in 2004). Growth was 3.5% in 2007 and 3.3% in 2008. The Greek economy has two main challenges: the heavy burden of its public debt and the high level of unemployment (estimated at 8.1% in 2006). A budgetary subsidy from the EU, estimated at 24 billion USD, was allocated to Greece for the period 2007-2013. The unemployment rate remains high at about 10% but inflation is under control at about 3.5%.

GDP Indicators	2004	2005	2006	2007	2008
GDP (billions USD)	264.49	284.23	308.72	356.26e	388.33e
GDP (constant prices, annual % change)	4.7	3.7	4.3	3.9e	3.6e
GDP per capita (USD)	23,872.87	25,606.60	27,751.35e	32,009.94e	34,814.13e
General government balance (in % of GDP)	-6.3	-4.4	-2.1	-2.1e	-1.9e
Inflation rate (%)	3.0	3.5	3.3	3.0e	3.2e
Unemployment rate (% of the labor force)	10.5	9.9	8.9	8.5	8.5
Current Account (billions USD)	-13.33	-18.24	-29.68	-34.68e	-37.18e
Current Account (in % of GDP)	-5.0	-6.4	-9.6	-9.7e	-9.6e

Source: IMF - World Economic Outlook Database

Note: (e) Estimated data

Socio-demographic indicators	2006	2007	2008
Unemployment rate (%)	8.9	8.5	8.5

Source:

Main sectors of industry

Traditionally, its economy is based on agriculture, and Greece has had only limited success in diversifying its economic base. However, industry has replaced agriculture as its main source of income; agriculture represents about 6% of GDP (and employs about 20% of the active population) while manufacturing represents about 23%. The main crops are tobacco (Greece is the largest European producer) and cotton (the fifth greatest exporter in the world). Tourism which is a growing part of the tertiary sector (about 70% of GDP) is an essential source of income and contributes 11% to GDP. A great number of sheep and goats are bred in Greece, which is moreover the largest European ship owner whose merchant navy represents 10% of GDP. A well developed fishing industry is found in coastal regions.

Breakdown of economic activity by sector	Agriculture	Industry	Services
Value added (annual % change)	-2.1	1.2	3.5
Value added (in % of GDP)	5.2	20.8	74.0
Employment by sector (in % of total employment)	12.4	22.4	65.1

Source: World Bank - World Development Indicators - last available data.

Monetary indicators	2002	2003	2004	2005	2006
Average annual exchange rate for 1 USD	1.06	0.89	0.81	0.80	0.80

Source: World Bank - World Development Indicators

Foreign trade in figures

Greece has an exceptionally extrovert economy. The total value of Greek trade amounted to 44,870.7 million EUR in 2003. Most of this concerns imports. Export levels remain low, creating a trade deficit, with services comprising the greatest share of exports (shipping tourism financial services immigrants foreign currency remittances, etc).

Foreign trade indicators	2002	2003	2004	2005	2006
Imports of goods (millions USD)	31,321	38,184	47,360	51,900	64,585
Exports of goods (millions USD)	9,865	12,578	15,739	17,631	20,300
Imports of services (millions USD)	9,819	11,250	14,020	14,742	16,367
Exports of services (millions USD)	20,142	24,283	33,085	33,914	35,762
Imports of goods and services (annual % change)	-1.4	4.5	9.3	-1.2	n.c.
Exports of goods and services (annual % change)	-7.7	1.0	11.7	2.9	n.c.
Imports of goods and services (in % of GDP)	30.2	29.2	29.7	28.0	n.c.
Exports of goods and services (in % of GDP)	20.6	19.6	20.8	20.8	n.c.
Trade Balance (millions USD)	-21,455	-25,606	-31,621	-34,268	-44,285
Trade Balance (including service) (millions USD)	-11,132	-12,573	-12,556	-15,096	-24,889
Current Account (millions USD)	-9,582	-12,804	-13,476	-18,233	-29,565
Current Account (in % of GDP)	-7.1	-7.3	-6.4	-8.1	-12.1
Foreign trade (in % of GDP)	50.8	48.8	50.5	48.8	n.c.

Source: World Bank - World Development Indicators

Main partner countries

Main customers (% of exports)	2006
Germany	11.3%
Italy	11.2%
Bulgaria	6.3%
United Kingdom	6.0%
Cyprus	5.3%

Main suppliers (% of imports)	2006
Germany	12.5%
Italy	11.6%
Russia	7.1%
France	5.9%
Netherlands	5.2%

Source: 2006

Main products

Main exports (% of exports)	2006
Mineral fuels, mineral oils	13.0%
Electrical machinery and equipment	5.9%
Pharmaceutical products	5.4%
Aluminum	5.3%
Machinery and mechanical appliances	4.9%

Main imports (% of imports)	2006
Mineral fuels, mineral oils	19.1%
Vehicles other than railway or tramway	8.7%
Machinery and mechanical appliances	8.1%
Electrical machinery and equipment	6.4%
Pharmaceutical products	5.6%

Source: 2006

To see more products: More imports (Intracen Data)
More exports (Intracen Data)

Sources of economic information

Ministries: http://www.ypan.gr/index_c_cms.htm">Ministry of developmenthttp://www.minagric.gr/">Ministry of agricultureMinistry of national economy Ministry of commercial shipping
Statistical Office: The National Statistical Service of Greece
Central Bank: Central Bank of Greece
Stock Exchange: Athens exchange
Online newspapers: Eleutherotypia
Greek News on Line
Naftemporiki
Athens News
.Kathimerin
Search Engines: Gogreece
Economic portals: Flash
Imerisia

Political outline

Executive Power

According to the Constitution, executive power is exercised by the President of the Republic and the Government ; after 1986, however, the role of the President in the executive branch is ceremonial. The position of Prime Minister, Greece's head of government, belongs to the current leader of the political party that can obtain the confidence of a plurality in the Parliament. The President of the Republic formally appoints the Prime Minister and, on his recommendation, appoints and dismisses the other members of the Cabinet.The Prime Minister exercises vast political power, and the amendment of 1986 further strengthened his position to the detriment of the President of the Republic.

Legislative Power

Legislative power is exercised by a 300-member unicameral Parliament. Statutes passed by the Parliament are promulgated by the President of the Republic. Parliamentary elections are held every four years, but the President of the Republic is obliged to dissolve the Parliament earlier on the proposal of the Cabinet, in view of dealing with a national issue of exceptional importance.The President is also obliged to dissolve the Parliament earlier, if the opposition manages to pass a motion of no confidence.

Main political parties

New Democracy
The Panhellenic Socialist Movement (PASOK)
The Communist Party of Greece (KKE)
The Coalition of the Radical Left (SYRIZA)
The Popular Orthodox Rally (LA.O.S.)

Current political leaders

Prime Minister of the Hellenic Republic : Kostas Karamanlis (New Democracy)

President of the Hellenic Republic : Karolos Papoulias

Next election dates

Parlementary elections : 2012