Running Head: GREECE ECONOMY 1

Introduction

The Greece economy is ranking 45th in the world which is contributing to $238 billion

annually on their gross domestic products. Even the purchasing power parity of Greece is highest

ranking at 51st at $ 286 billion annually. Out of the 28 members in the European Union, Greece

stands on the 13th position for its largest economy. In the year 2013, Greece ranked 38th for its

contribution in the gross domestic product per capita and 44th for its purchasing power parity.

Greece comes under developed country and its economy is generally relied on industry,

agriculture, tourism and shipping. The main revenue generating sector of Greece is tourism and

shipping. In 2013 it ranked 7th for its tourism among the European Union. The country’s

economy demolished by World War II, but the wonder could be seen in the economic growth

between the periods of 1950-1980. The standard of living of the people of Greece is high

because of the high Human Development Index. There are certain problems in Greece economy

such as rising unemployment rates, bureaucracy in public sector, tax avoidance etc. (The

Economist, 2015)

Industry and Shipping

The development in the industry sector has been tremendous. The major industry that

accounts for revenue in this sector are cement, pharmaceutical, concrete, beverages, dairy,

aluminum, beer, marble etc. The marble industry of Greece is the highest for the production of

marble, after Italy and Spain. The shipping industry of Greece is the largest owing 16% of the

total fleets. The shipping industry deals with all kinds of ships including their tankers and bulk

carrier ships that are used for the transportation of heavy mining goods. The main industries in

this sector are mining, petroleum, lignite, bauxite, zinc etc. (Infoplease.com, 2015)
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Agriculture and Fishing

Agriculture does not contribute much to the economy of Greece but still in certain

agricultural products Greece ranks higher in the European Union such as cotton, pistachio, rice,

olives, figs, almonds tomatoes, watermelons, tobacco. The agriculture sector contribution in the

GDP’s of Greece in low as compared to other sector along with the low labor force employment.

After entering into the European Community the agriculture infrastructure has been enhanced

drastically, increasing the output of the agricultural products. (Infoplease.com, 2015)

Tourism

Every year Greece attracts millions of tourist. The tourism sector has shown a

tremendous flourish. It’s the second after industry sector to contribute to Greece GDP’s. Tourism

sector aids in providing highest revenue to the Greece economy. The major attraction of the

tourist spot are The Temple of Poseidon in Sounion, the Island of Santorini, Cyclades Island,

Naxos, Milos, Paros, Antiparos, Ionian Islands etc. In recent years the country has focused in

providing world class hospitality to the tourism sector. (Infoplease.com, 2015)

Others

There are other sectors in which development can be seen such as telecommunication,

transport, energy. The telecommunication was once dominated by Hellenic Telecommunication

Organization but now there are other telecommunication industries that have been set up such as

Deutsche Telekom, Wind Hellas and Vodafone Greece. The Hellenic Telecommunication

Organization still dominates the telecom market of Greece.

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The transport system of Greece is generally used for the transportation of goods or by the

tourism industry. The air industry of Greece is governed by the Aegean Airlines along with its

ancillary Olympic Air. There are number of road projects that have been co-funded by other

association for the construction of road ways. (Infoplease.com, 2015)

Government Debt Crises

The Greece economy recently has faced Debt-crises. In 2009 the balance of trade of

Greece went negative, there was increase in import by the Greece government and the export

significantly started falling. In 2010 many banks has provided loans for future payments but the

liability started rising making it difficult for the re-payment of loan taken. This crisis has affected

the whole economy of Greece whether it’s the industry sector or the tourism sector.

Unemployment has been rising rapidly because of this. When the debt-crises of Greece started in

2010 many international financial institutions and foreign investors started selling their holdings

and other Greek bonds so that they are relieved from the Greece debt-crises. The standard of

living of the people got affected from this crises, the standard of living that was once high has

fallen drastically. In 2014 it started coming out of its six year of recession, but still it will take

time for the Greece economy for flourishing the way it was before recession. This crisis has left

disappointment among the people and the negotiation is endless without any conclusion. There is

still a question regarding the political stability that Greece once use to possess and will Greece be

able to recover from the debt that has created so much havoc in its economy. For overcoming

these entire crises the European Union has provided with another loan to the Greece government

for recapitalizing their bank. The government has to make changes in different sectors for

overcoming these crises. (The Economist, 2015)

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Reference:

The Economist,. (2015). Greek economy | Economist - World News, Politics, Economics,

Business & Finance. Retrieved 14 July 2015, from http://www.economist.com/topics/greek-

economy

Infoplease.com,. (2015). Greece: Economy. Retrieved 14 July 2015, from

http://www.infoplease.com/encyclopedia/world/greece-economy.html

Huffingtonpost.com,. (2015). Greece Economy. Retrieved 14 July 2015, from

http://www.huffingtonpost.com/news/greece-economy/