Greece Overview

Greece's growth has been continuous for several years, bolstered by huge community aids granted and by investments realised thanks to 2004 Athens Olympic Games. The GDP soared a little less quickly in 2005 due to the end of Olympic Games-linked investments.GDP growth rate was 4.2% in 2004 but only 3.2% in 2005 ; the FMI forecasts a 2.9% growth in 2006. Inflation maintains a relative high level, with 3.5% for the year 2005. Investment is an essential driving force for the activity, especially concerning infrastructures and capital goods sectors. The Greek economy's two major weaknesses are the heavy burden of its public debt and the high level of unemployment (unemployment rate was 11% in 2004). The Greek authorities launched a privatisation policy to reduce public debt thanks to the earnings collected.

Tourism and merchant navy are the Greek economy's two pillars. Tourism is booming and generates 11% of the GDP, it has now become a major stake for the government. Greece is the largest European ship-owner and merchant navy accounts for 10% of the GDP. Agriculture occupies an important place in economy with 6.87% of the GDP in 2004, whereas cultivable surface is very reduced (17% of the territory) ; this sector employs 20% of the active population. The main crops are tobacco (largest European producer), cotton (fifth largest exporter in the world), sugar beetroot, fruits and vegetables (27% of the agricultural production). Cotton growing is racing ahead, and this industry contributes to 21.2% of the GDP. This activity, focused on textile and food processing, is dominated by family-held firms.

Germany, Italy and France are Greece's top import countries. Its top export countries are Germany, Italy and the UK. Greece mainly imports hydrocarbons, equipment goods and boats. Telecommunications, computing, building, medical equipment, and some food products such as fish or groundnuts are important developing sectors.