The Greek economy is the 48th largest in the world with nominal gross domestic product (GDP) of $ 192.691 billion per year. It is also the 55th largest in the world by purchasing power parity, at $ 288,418 billion annually. By 2017, Greece is the seventh largest economy in the 28-member European Union. According to IMF forecasts for 2017, Greece is ranked 39th and 49th in the world at $ 18,637 and $ 27,737 for nominal GDP per capita and parity per capita purchasing power respectively.
Greece is a developed country with a service-based economy (82.8%) and industrial sector (13.3%). The agricultural sector accounts for 3.9% of national economic output by 2015. Important Greek industries include tourism and shipping. With 18 million international tourists by 2013, Greece is the 7th most visited country in the EU and the 16th in the world. The Greek Navy Traders are the largest in the world, with Greek ships accounting for 15% of the global weighting tonnage in 2013. The increasing demand for international marine transportation between Greece and Asia has resulted in an unprecedented investment in the shipping industry.
This country is a significant agricultural producer in the EU. Greece has the largest economy in the Balkans and is an important regional investor. Greece is the largest foreign investor in Albania in 2013, third in Bulgaria, in the top three in Romania and Serbia and the most important trading partner and largest foreign investor in the Republic of Macedonia. Greek telecom company OTE has become a strong investor in the former Yugoslavia and in other Balkan countries.
Greece is classified as an advanced economy, high income, and is a founding member of the Organization for Economic Cooperation and Development (OECD) and the Organization for Economic Cooperation of the Black Sea (BSEC). The country joined what is now the EU in 1981. In 2001 Greece adopted the euro as its currency, replacing Greek drachma with an exchange rate of 340.75 drachmas per euro. Greece is a member of the International Monetary Fund and World Trade Organization, and ranked 34th in Ernst & amp; Index of Young Globalization 2011.
World War II (1939-1945) destroyed the country's economy, but the high rate of economic growth that followed from 1950 to 1980 has been called the miracle of the Greek economy. From 2000 Greece saw a high GDP growth rate above the Eurozone average, peaking at 5.8% in 2003 and 5.7% in 2006. The next big recession and the Greek government debt crisis, the main focus of the European debt crisis widening the economy to a sharp decline, with real GDP growth rates of -0.3% in 2008, -4.3% in 2009, -5.5% in 2010, -9.1% on year 2011, -7.3% in 2012 and -3.2% in 2013. In 2011, the country's public debt reached EUR356 billion (172% of nominal GDP). After negotiating the largest debt restructuring in history with the private sector, Greece reduced its debt burden to EUR280 billion (137% of GDP) in the first quarter of 2012. Greece achieved real GDP growth rate of 0.7% in 2014 - after 6 years of economic downturn - but contracted by 0.3% in 2015 and 0.2% by 2016.
Video Economy of Greece
Histori
The evolution of the Greek economy during the nineteenth century (the period that changed most of the world by the Industrial Revolution) has been little studied. Recent research from 2006 examines the gradual development of the industry and the further development of shipments in a predominantly agricultural economy, calculating the average rate of per capita GDP growth between 1833 and 1911 which is only slightly lower than in other Western European countries. Industrial activities, (including heavy industries such as shipbuilding) are very real, especially in Ermoupolis and Piraeus. Nonetheless, Greece faced economic difficulties and defaulted on its external lending in 1826, 1843, 1860 and 1893.
Other studies support the above view on general trends in economics, providing a standard measure of living standards. Greece's per capita income (in purchasing power) was 65% of France in 1850, 56% in 1890, 62% in 1938, 75% in 1980, 90% in 2007, 96.4% in 2008 and 97.9% in 2009.
The post World War II development in the country is largely tied to the wonders of the Greek economy. During that period, Greece saw a second growth rate after Japan, while ranking first in Europe in terms of GDP growth. This shows that between 1960 and 1973 the Greek economy grew an average of 7.7%, in contrast to 4.7% for EU15 and 4.9% for the OECD. Also during that period, exports grew at an average annual rate of 12.6%.
Strengths and weaknesses
Greece enjoys a high standard of living and a very high Human Development Index, ranked 29th in the world in 2014. However, the severe recession of recent years has seen GDP per capita drop from 94% of the EU average in 2009 to 68% in 2016 Actual Individual Consumption (AIC) per capita fell from 104% of the EU average to 77% over the same period.
The main industries of Greece are tourism, shipping, industrial products, food and tobacco processing, textiles, chemicals, metal products, mining and petroleum. The GDP growth of Greece also, as averages, since the early 1990s is higher than the EU average. However, the Greek economy continues to face significant problems, including high unemployment, inefficient public sector bureaucracy, tax evasion, corruption, and low global competitiveness.
Greece is ranked 59th in the world on the Corruption Perceptions Index in addition to Romania, with only Hungary and Bulgaria scoring worse among the EU member states. Greece also has the EU's lowest Economic Freedom Index and Global Competitiveness Index, each ranked 115th and 87th in the world.
After fourteen consecutive years of economic growth, Greece experienced a recession in 2008. By the end of 2009, the Greek economy faced the highest budget deficit and the debt-to-GDP ratio of governments in the EU. After some upward revisions, the 2009 budget deficit is now estimated at 15.7% of GDP. This, combined with rapidly rising debt levels (127.9% of GDP in 2009) led to a sharp increase in borrowing costs, effectively closing Greece off global financial markets and resulting in a severe economic crisis.
Greece is accused of trying to cover its enormous budget deficit rate amid the global financial crisis. The allegations were spurred by a massive revision of the 2009 budget deficit forecast by the new SUPP government elected in October 2009, from "6-8%" (estimated by the previous New Democracy government) to 12.7% (later revised to 15.7 %). However, the accuracy of revised figures has also been questioned, and in February 2012, the Hellenic Parliament voted in favor of an official investigation following allegations by former members of the Hellenic Statistics Authority that the deficit has artificially inflated to justify tougher actions. austerity measures.
The Greek workforce, which is approximately 5 million workers, averaged 2,032 work hours per worker per year in 2011, is ranked fourth among OECD countries, after Mexico, South Korea and Chile. The Groningen Growth & amp; The Development Center has published a poll which reveals that between 1995 and 2005, Greece was a country whose workers had the most working hours/years among European countries; The Greeks work an average of 1,900 hours per year, followed by Spaniards (an average of 1,800 hours/year).
As a result of the ongoing economic crisis, industrial production in the country fell 8% between March 2010 and March 2011, the volume of building activity decreased by 73% in 2010. In addition, retail sales turnover decreased 9% between February 2010 and February 2011.
Between 2008 and 2013 unemployment jumped, from a low-generation 7.2% in the second and third quarter of 2008 to a high of 27.9% in June 2013, leaving more than a million unemployed. Youth unemployment peaked at 64.9% in May 2013. By 2015, the unemployment rate reaches about 24% and youth unemployment is around 47%. However, in July 2017, the exchange rate increased and was at 21.7%.
Eurozone entry
Greece was accepted into the European Union's Economic and Monetary Union by the Council of Europe on June 19, 2000, based on a number of criteria (inflation rate, budget deficit, public debt, long-term interest rate, exchange rate) using 1999 as the reference year. Following an audit commissioned by the New Democracy government that entered in 2004, Eurostat revealed that statistics for budget deficits have been less reported.
Most of the differences in the revised budget deficit figure are due to a temporary change of accounting practices by the new government, that is, the cost of recording when military material is ordered rather than accepted. However, it is a retroactive application of the ESA95 methodology (implemented since 2000) by Eurostat, which eventually raised the reference budget deficit (1999) to 3.38% of GDP, exceeding the 3% limit. This led to claims that Greece (similar claims have been made about other European countries such as Italy) have not really met the five criteria of accession, and the general perception that Greece entered the eurozone through the number of "forged" deficits.
In the OECD 2005 report for Greece, it is clear that "the impact of new accounting rules on fiscal figures for the years 1997 to 1999 ranged from 0.7 to 1 percentage points of GDP, this retroactive methodological change is responsible for the deficit revision of over 3% in 1999 , year [Greece] EMU membership qualification ". The above causes the Greek finance minister to clarify that the 1999 budget deficit is below the 3% limit specified when calculated by the ESA79 methodology applicable at the time of the Greek application, and thus the criteria have been met.
The original accounting practices for military expenses were then restored in accordance with Eurostat recommendations, theoretically reducing even the Greek budget deficit calculated ESA95 1999 to below 3% (official Eurostat calculations are still pending for 1999).
An occasional mistake is the confusion of discussions on the Greek Euro Zone entry with the controversy regarding the use of derivative transactions with the US Bank by Greece and other eurozone countries to artificially reduce the reported budget deficit. A currency swap set up with Goldman Sachs allows Greece to "hide" 2.8 billion euros of debt, however, this affects the value of the deficit after 2001 (when Greece has been accepted into the Euro Zone) and is not associated with the Greek Eurozone entry.
A study of the period 1999-2009 by forensic accountants has found that data sent to Eurostat by Greece, among other countries, has a statistical distribution of indications of manipulation; "Greece with an average rating of 17.74, indicating the biggest deviation from Benford's law among euro zone members, followed by Belgium with a value of 17.21 and Austria with a value of 15.25".
Krisis utang pemerintah 2010-2015
At the end of 2009, as a result of a combination of international and local factors, Greece's economy faced the most severe crisis since the democratic recovery in 1974 when the Greek government revised its deficit from a 3.7% forecast in early 2009 and 6% in September 2009 to 12, 7% of gross domestic product (GDP).
In early 2010, it was revealed that through the assistance of Goldman Sachs, JPMorgan Chase and a number of other banks, financial products were developed that enabled the governments of Greece, Italy and many other European countries to hide their loans. Dozens of similar agreements were agreed in Europe where banks provided cash in advance in exchange for future payments by the governments involved; in turn, the obligations of the countries involved "are kept away from the books".
According to Der Spiegel , credits granted to European governments are disguised as "swaps" and consequently are not listed as debt because Eurostat at that time ignored statistics involving financial derivatives. A German derivative agent commented to "Der Spiegel" that "Maastricht's rule is legally avoided through swap," and "In previous years, Italy used similar tricks to cover its real debts with the help of different US banks. "This condition has allowed Greece and many other European governments to spend beyond their means, while meeting the EU deficit targets and monetary union guidelines. In May 2010, the Greek government deficit was revised again and it is estimated that 13.6% are among the highest relative to GDP, with Iceland in the first place at 15.7% and the UK third with 12.6%. Public debt is estimated, according to some estimates, to reach 120% of GDP during 2010.
As a result, there was an international crisis of confidence in Greece's ability to repay the country's debt, as reflected in the rise in interest rates on state borrowing (despite the slow rise - 10 year government bond yields only exceed 7% in April 2010 - Coinciding with a large number of negative articles, has led to arguments about the role of international news media in the evolution of the crisis). In order to prevent a default (because high interest rates effectively prohibit access to markets), in May 2010 other Euro zone countries, and the IMF, approved a "rescue package" involving Greek EUR soon 45 billion in a bail-out loan, with more funds to follow, for a total of EUR 110 billion . To secure funding, Greece was asked to adopt tough austerity measures to bring its deficit under control. Its implementation should be monitored and evaluated by the European Commission, the European Central Bank, and the IMF.
The financial crisis - particularly the austerity package put forward by the European Union and the IMF - has been met with anger by the Greek public, causing social unrest and riots, while there is a theory about the influence of international media. Although - others say because - the long range of austerity measures, the government's deficit has not diminished, especially, according to many economists, due to the subsequent recession.
Public sector workers have been striking to refuse job cuts and salary reductions as the government promises that large-scale privatization programs will be accelerated. Immigrants are sometimes treated as scapegoats for economic problems by far-right extremists.
In 2013, Greece became the first market developed to be reclassified as an emerging market by the MSCI financial services company and the Dow Jones S & P Index.
In July 2014 there was still anger and protest about austerity measures, with a 24-hour strike among government workers timed to coincide with audits by inspectors from the International Monetary Fund, European Union and European Central Bank before a second bailout decision of one billion euros ($ 1.36 billion), due at the end of July.
Greece out of its six-year recession in the second quarter of 2014, but the challenge to secure political stability and debt sustainability persists.
In June 2017, news reports indicated that "devastating debt burden" has not been reduced and that Greece is at risk of default on some payments. The International Monetary Fund states that the country should be able to borrow again "in due course". At that time, the Euro zone gave Greece another credit of $ 9.5 billion, $ 8.5 billion in loans and short details about the possibility of debt relief with the help of the IMF. On July 13, the Greek government sent a letter of willingness to the IMF with 21 commitments it promised to fulfill in June 2018. They include changes in labor laws, plans to limit public sector employment contracts, to change temporary contracts into permanent agreements and to recalculate pension payments to reduce expenses for social security.
Maps Economy of Greece
Primary sector
Agriculture and fishery
In 2010, Greece was the largest cotton producer in Europe (183,800 tons) and pistachios (8,000 tons) and ranked second in rice production (229,500 tons) and olives (147,500 tons), third in figs production (11,000 tons). and almonds (44,000 tons), tomatoes (1,400,000 tons) and watermelons (578,400 tons) and fourth in tobacco production (22,000 tons). Agriculture accounts for 3.8% of the country's GDP and employs 12.4% of the country's workforce.
Greece is the main beneficiary of the EU Common Agricultural Policy. As a result of the country's entry into the European Community, much of its agricultural infrastructure has been upgraded and agricultural output has increased. Between 2000 and 2007 organic farming in Greece increased by 885%, the highest percentage change in the EU.
In 2007, Greece accounted for 19% of EU fishing in the Mediterranean Sea, ranked third with 85,493 tons, and ranked first in the number of Mediterranean fishing vessels among EU members. In addition, the country ranks 11th in the EU in the total number of captured fish, with 87,461 tons.
Secondary sector
Industry
Between 2005 and 2011, Greece had the highest percentage increase in industrial output compared to 2005 levels of all EU members, with an increase of 6%. Eurostat statistics show that the industrial sector was hit by the Greek financial crisis during 2009 and 2010, with domestic output falling by 5.8% and general industrial production by 13.4%. Currently, Greece is ranked third in the European Union in marble production (over 920,000 tons), after Italy and Spain.
Between 1999 and 2008, the volume of retail trade in Greece increased by an average of 4.4% per year (a 44% increase in total), while it was down 11.3% in 2009. The only sector that did not see negative growth in 2009 was administration and services, with a marginal growth of 2.0%.
In 2009, Greek labor productivity was 98% of the EU average, but its productivity per work hour was 74% of the Eurozone average. The largest industrial company in the country (in 2007) was manufacturing industry (407,000 people), followed by construction industry (305,000) and mining (14,000).
Greece has a significant shipbuilding and shipbuilding industry. The six shipyards around the port of Piraeus are the largest in Europe. In recent years, Greece has been a leader in the construction and maintenance of luxury yachts.
Mine
Tertiary sector
The maritime industry
Traditional delivery has been a key sector in the Greek economy since ancient times. In 1813, the Greek merchant navy consisted of 615 vessels. Total tonnage is 153,580 tons and manned with 37,526 crew and 5,878 cannons. In 1914 the number reached 449,430 tons and 1,322 ships (287 of which were steamers).
During the 1960s, the size of the Greek fleet almost doubled, mainly through investments made by Onassis, Vardinoyannis, Livanos and Niarchos shipping lords. The foundation of the modern Greek maritime industry was formed after World War II when Greek shipbuilders were able to collect surplus ships sold to them by the United States Government through the 1940s Shipping Law.
Greece has the largest navy in the world, accounting for more than 15% of the total deadweight tonnage (dwt) according to the United Nations Conference on Trade and Development. The total dwt of Greek marine traders is almost 245 million comparable only to Japan, which ranks second with nearly 224 million. In addition, Greece represents 39.52% of all EU dwt. However, the current fleet list is smaller than the 5,000-ship height in the late 1970s.
Greece ranks fourth in the world by number of ships (3,695), behind China (5,313), Japan (3,991), and Germany (3,833). Reports of the European Ship Ownership Association for 2011-2012 reveal that the Greek flag is the seventh most commonly used internationally for shipping, while it ranks second in the European Union.
In terms of ship category, Greek companies have 22.6% of world tankers and 16.1% of the world's largest bulk carrier (in dwt). An additional equivalent of 27.45% of the world's dwt tankers is on the order, with 12.7% of other bulk carriers also on order. Delivery of goods is estimated at about 6% of Greek GDP, employing about 160,000 people (4% of the workforce), and representing 1/3 of the country's trade deficit. Revenue from shipments amounted to EUR14.1 billion in 2011, while between 2000 and 2010 Greek shipments contributed a total of EUR140 billion (half of the country's public debt in 2009 and 3.5 times of EU revenue in the 2000-2013 period). The ECSA 2011 report shows that there are about 750 Greek shipping companies operating.
The latest data available from the Union of Greek Shipowners shows that "the Greek owned fleet comprises 3,428 vessels, totaling 245 million deadweight tons in capacity, equivalent to 15.6 percent of the carrying capacity of all global fleets, including 23.6 percent of the world's tanker fleet and 17.2 percent of the dry bulk ".
Counting shipments as quasi-export and in terms of monetary value, Greece ranked 4th globally in 2011 after exporting delivery services worth 17,704,132 million $; only Denmark, Germany and South Korea were ranked higher during the year. Similarly, calculating the delivery services provided to Greece by other countries as quasi-import and the difference between exports and imports as the trade balance, Greece in 2011 was ranked second behind Germany, having import shipments worth 7.076.605 million US $ and has run a trade surplus of 10,712,342 million US $.
Telecommunications
Between 1949 and 1980s, telephone communication in Greece was a state monopoly by the Hellenic Telecommunications Organization, better known as its acronym, OTE. Despite the liberalization of telephone communications in the country in the 1980s, OTE still dominates the Greek market in its field and has emerged as one of the largest telecommunications companies in Southeastern Europe. Since 2011, the main shareholder of the company is Deutsche Telekom with 40% of the shares, while the Greek state continues to own 10% of the company's shares. OTE has subsidiaries throughout the Balkans, including Cosmote, Greece's leading mobile telecommunications provider, Cosmote Romania and Albanian Mobile Communications.
Other active cellular telecommunications companies in Greece are Wind Hellas and Vodafone Greece. The total number of active mobile phone accounts in the country in 2009 based on statistics from mobile phone providers in the country more than 20 million, 180% penetration. In addition, there are 5.745 million active telephone lines in the country.
Greece tends to lag behind EU partners in terms of Internet use, with the gap closing rapidly in recent years. The percentage of households with access to the Internet more than doubled between 2006 and 2013, from 23% to 56% respectively (compared with the EU average of 49% and 79%). At the same time, there is a massive increase in the proportion of households with broadband connections, from 4% in 2006 to 55% in 2013 (compared to the EU average of 30% and 76%). However, Greece also has the third highest percentage of EU from people who never use the Internet: 36% in 2013, down from 65% in 2006 (compared to the EU average of 21% and 42%).
Tourism
Tourism in the modern sense only began to develop in Greece in the years post-1950, although tourism in ancient times is also documented in relation to religious festivals or sports such as the Olympics. Since the 1950s, the tourism sector saw an unprecedented increase as an entrants from 33,000 in 1950 to 11.4 million in 1994.
Greece attracts more than 16 million tourists each year, thus contributing 18.2% to the national GDP in 2008 according to the OECD report. The same survey shows that the average temporary tourist spending in Greece is $ 1,073, ranked 10th of Greece in the world. The number of jobs directly or indirectly related to the tourism sector is 840,000 in 2008 and represents 19% of the total labor force of the country. In 2009, Greece welcomed more than 19.3 million tourists, a huge increase from the 17.7 million tourists the country greeted in 2008.
Among the EU member states, Greece is the most popular destination for residents of Cyprus and Sweden in 2011.
The ministry responsible for tourism is the Ministry of Culture and Tourism, while Greece also has a National Tourism Organization of Greece aimed at promoting tourism in Greece.
In recent years a number of famous tourism organizations have placed Greek destinations at the top of their list. In 2009 Lonely Planet placed Thessaloniki, the second largest city in the country, the "fifth best Party City" in the world, alongside cities like Montreal and Dubai, while in 2011 the island of Santorini was voted the world's best island by Travel Time spare. Mykonos neighboring island is ranked fifth as the best island in Europe. Thessaloniki is European Youth Capital in 2014.
Trade and investment
Foreign investment
Since the fall of communism, Greece has invested heavily in the neighboring countries of the Balkans. Between 1997 and 2009, 12.11% of foreign direct investment capital in the Republic of Macedonia was Greece, ranked fourth. In 2009 alone, the Greeks invested EUR380 million in the country, with companies like Hellenic Petroleum who have made important strategic investments.
Greece invested EUR1.38 billion in Bulgaria between 2005 and 2007 and many important companies (including Bulgaria Postbank, United Bulgaria Bulgarian Coca-Cola Bank) are owned by the Greek financial group. In Serbia, 250 Greek companies are active with a total investment of over EUR2 billion. Romanian statistics from 2005 show that Greek investment in the country exceeds EUR3 billion. Greece has become the largest investor in Albania since the fall of communism with 25% of foreign investment in 2016 coming from Greece, in addition to the strong and growing business relationship between the two.
Trading
Since the beginning of the debt crisis, Greece's negative trade balance has declined significantly from EUR44.3 billion in 2008 to EUR21.4 billion in 2017. In 2017, imports increased 13.8% and exports rose 13.3%.
Greece is also Cyprus's largest import partner (18.0%) and the largest export partner of Palau (82.4%).
Transport
In 2012, Greece has 82 airports, 67 of which are paved and six have runways longer than 3,047 meters. Of these airports, the two are classified as "international" by the Hellenic Civil Aviation Authority, but 15 offer international services. In addition Greece has 9 heliports. Greece has no airlines, but the country's aviation industry is dominated by Aegean Airlines and its subsidiary Olympic Air.
Between 1975 and 2009, Olympic Airways (known after 2003 as Olympic Airlines) was a state-owned airline, but financial problems led to privatization and were relaunched as Olympic Air in 2009. Both Aegean Airlines and Olympic Air have won awards for their services; in 2009 and 2011, Aegean Airlines was awarded "Best regional regional award in Europe" by Skytrax, and also has two gold and silver awards by ERA, while Olympic Air holds a silver ERA award for "Airline of the Year" as well as as the "Readers Choice Award" Condà © Nast Traveler 2011, Top Domestic Airline Award ".
The Greek road network comprises 116,986 km of roads, of which 1,863 km is a highway, ranking 24 worldwide, by 2016. Since the entry of Greece into the European Community (now the European Union), a number of important projects (such as Egnatia Odos and Attiki Odos) are funded by the organization, helping to improve the country's road network. In 2007, Greece was ranked 8th in the European Union for goods transported by road with nearly 500 million tonnes.
The Greek rail network is estimated at 2,548 km. Rail transportation in Greece is operated by TrainOSE, a subsidiary of the Hellenic Railways Organization (OSE). Most state networks are standard gauges (1,565 km), while the country also has 983 km of narrow gauges. A total of 764 km of railways are powered by electricity. Greece has rail connections with Bulgaria, Republic of Macedonia and Turkey. A total of three suburban railway systems (Proastiakos) operate (in Athens, Thessaloniki, and Patras), while a metro system, Metro Athens, operates in Athens with another, Metro Thessaloniki, under construction.
According to Eurostat, the largest Greek port with tons of goods transported in 2010 is Aghioi Theodoroi port, with 17.38 million tons. The Port of Thessaloniki is second with 15.8 million tons, followed by Piraeus Harbor, with 13.2 million tons, and the port of Eleusis, with 12.37 million tons. The total amount of goods transported through Greece in 2010 was 124.38 million tons, a substantial decline from 164.3 million tons transported through the country in 2007. Since then, Piraeus has grown into the third largest port in the Mediterranean thanks to large investment by Chinese logistics giant COSCO. In 2013, Piraeus was declared the fastest growing port in the world.
In 2010 Piraeus handled 513,319 TEUs, followed by Thessaloniki, which handled 273,282 TEUs. In the same year, 83.9 million people passed through the Greek port, 12.7 million through the port of Paloukia in Salamis, 12.7 through Perama port, 9.5 million through Piraeus and 2.7 million through Igoumenitsa. In 2013, Piraeus handles a record 3.16 million TEUs, the third largest figure in the Mediterranean, of which 2.52 million are transported through Pier II, owned by COSCO and 644,000 transported through Pier I, owned by the Greek state.
Energy
Energy production in Greece is dominated by the Public Electric Company (known mostly by its acronyms ???, or in English DEI). In 2009 DEI supplied 85.6% of all energy demand in Greece, while the number decreased to 77.3% in 2010. Nearly half (48%) DEI power output was produced using lignite, a decrease from 51.6% in 2009 Another 12% comes from hydroelectric power and another 20% from natural gas. Between 2009 and 2010, independent company energy production increased 56%, from 2,709 Gigawatt hours in 2009 to 4,232 GWh in 2010.
In 2008 renewable energy accounted for 8% of the country's total energy consumption, up from 7.2% recorded in 2006, but still below the EU average of 10% in 2008. 10% of the country's renewable energy derived from solar power, while mostly derived from biomass and waste recycling. In line with the European Commission's Directive on Renewable Energy, Greece aims to get 18% of its energy from renewable sources by 2020. By 2013 and for several months, Greece generates more than 20% of its electricity from renewable energy sources and hydroelectric power. Greece currently has no nuclear power plant in operation, but in 2009 the Athens Academy suggested that research into the possibility of a Greek nuclear power plant begins.
Greece has 10 million barrels of proven oil reserves as of January 1, 2012. Hellenic Petroleum is the country's largest oil company, followed by Motor Oil Hellas. Greek oil production was at 1,751 barrels per day (bbl/d), ranked 95th worldwide, while its exports were 19,960 bbl/d, 53rd, and imported 355,600 bbl/d, ranked 25th.
In 2011 the Greek government approved the start of oil exploration and drilling at three locations in Greece, with an estimated production of 250 to 300 million barrels over the next 15 to 20 years. The estimate of output in euros of three deposits is EUR25 billion over a 15-year period, of which EUR13-EUR14 billion will go into the state treasury. The Greek dispute with Turkey over the Aegean Sea poses a major obstacle to oil exploration in the Aegean Sea.
In addition to the above, Greece also started oil and gas exploration at other locations in the Ionian Sea, as well as the Libyan Sea, in the exclusive Greek economic zone, south of Crete. The Ministry of Environment, Energy and Climate Change announces that there is interest from various countries (including Norway and the United States) in exploration, and the first results on the amount of oil and gas at these locations are expected by the summer of 2012. In November 2012, published by Deutsche Bank estimates the value of natural gas reserves in southern Crete of EUR427 billion.
A number of oil and gas pipelines are currently under construction or are being planned in the country. The projects include Turkish-Greek-Italian Interconnector (ITGI) and South Stream gas pipeline.
The EuroAsia interconnect will electrically connect Attica and Crete in Greece with Cyprus and Israel with a 1500 MW HVDC submarine power cable. Interconnection of EuroAsia is particularly important for isolated systems, such as Cyprus and Crete. Crete is energetically isolated from the Greek mainland and Hellenic Republic cover for Cretaceal electricity costs a difference of about EUR300 million per year.
Taxation and tax evasion
Greece has a tiered tax system based on progressive taxation. Greek law recognizes six categories of taxable income: immovable property, movable property (investment), income from agriculture, business, employment, and income from professional activities. The rate of personal income tax of Greece, to date, ranges from 0% for annual revenue under EUR12,000 to 45% for annual revenues in excess of EUR100,000. Under the new 2010 tax reform, tax exemptions have been abolished.
Also under new austerity measures and among other changes, the tax-exempt free tax free limit has been reduced to EUR5,000 per year while further changes in the future, such as the removal of the ceiling, are already being planned.
Greek corporate taxes fell from 40% in 2000 to 20% in 2010. For 2011 alone, corporate taxes will reach 24%. Value added tax (VAT) has increased in 2010 compared to 2009: 23% compared to 19%.
The lowest VAT value is 6.5% (previously 4.5%) for newspapers, magazines and cultural event tickets, while the tax rate of 13% (out of 9%) applies to certain service sector professions. In addition, both employers and employees must pay social contribution taxes, which apply at a 16% rate for white-collar jobs and 19.5% for blue-collar jobs, and are used for social insurance. Now (2017) the VAT tax rate is 24% with small exceptions, 13% Reduced for some of the basic ingredients that will soon be removed and everything, as it seems, will soon go to 24% to fight the evasion of tax evasion.
The Ministry of Finance expects tax revenue for 2012 to be EUR52.7 billion (EUR23.6 billion in direct taxes and EUR29.1 billion in indirect taxes), up 5.8% from 2011. In 2012, the government is expected to have tax revenues much higher than in 2011 in a number of sectors, especially housing (an increase of 217.5% from 2011).
Tax evasion
Greece suffers from a very high tax avoidance rate. In the last quarter of 2005, tax evasion reached 49%, while in January 2006 it fell to 41.6%. It should be noted that the Ethnos newspaper that published these figures went bankrupt; it is no longer published and some sources indicate that the published information is highly debated. A study by researchers from the University of Chicago concluded that tax evasion in 2009 by self-employed professionals in Greece (accountants, dentists, lawyers, doctors, private tutors and independent financial advisers) was EUR28 billion or 31% of the budget deficit that year..
The Tax Justice Network estimates that by 2011 there will be more than 20 billion euros in Swiss bank accounts held by the Greeks. Former Greek Finance Minister Evangelos Venizelos was quoted as saying: "About 15,000 people and firms owe taxman 37 billion euros". In addition, TJN puts the number of offshore Greek companies in more than 10,000.
In 2012, Swiss estimates show that Greeks have about 20 billion euros in Switzerland of which only one percent has been declared tax in Greece. Estimates in 2015 are even more dramatic. They point out that the amount the Greek government pays from the accounts of the Greeks in Swiss banks reaches about 80 billion euros.
A mid-2017 report indicates the Greeks have been "taxed to the nipple" and many believe that the risk of punishment for tax evasion is less serious than the risk of bankruptcy. One method of circumvention is the so-called black market, the gray economy or the shadow economy: work is done for cash payments not expressed as income; also, VAT is not collected and sent. The January 2017 report by think-tank DiaNEOsis shows that the unpaid taxes in Greece at the time reached about 95 billion euros, up from 76 billion euros by 2015, most of which is not expected to be collectible. Another preliminary 2017 study estimates that the government's losses as a result of tax evasion are between 6% and 9% of the country's GDP, or roughly between 11 billion and 16 billion euros per year.
Disadvantages in the VAT collection (sales tax) are also significant. By 2014, the government collects 28% less than it has on it; this shortfall is approximately twice the average for the EU. The year's uncollected amount was about 4.9 billion euros. The DiaNEOsis study estimates that 3.5% of GDP is lost due to VAT fraud, while losses due to smuggling of alcohol, tobacco and gasoline account for about 0.5% of the country's GDP.
The planned solution
Following similar actions by the United Kingdom and Germany, the Greek government was in talks with Switzerland in 2011, seeking to force Swiss banks to disclose information behind the Greek accounts. The Ministry of Finance stated that the Greeks with Swiss bank accounts will be required to pay taxes or disclose information such as the identity of the bank account holder to the Greek internal revenue service. The Greek and Swiss governments reached an agreement on the issue by the end of 2011.
The solution demanded by Greece is still not done in 2015. That year, estimates show that the amount of taxes that were spared is kept in Swiss banks is about 80 billion euros. However, at that time, the tax treaty to resolve the issue was under serious negotiations between the Greek and Swiss governments. The agreement was eventually ratified by Switzerland on 1 March 2016 creating a new tax-transparency law that would allow a more effective battle against tax evasion. Starting in 2018, banks in Greece and Switzerland will exchange information about bank accounts of other citizens to minimize the possibility of hiding unpaid revenue.
In 2016 and 2017, the government encourages the use of credit cards or debit cards to pay for goods and services to reduce cash payments only. In January 2017, taxpayers were only granted tax allowances or withholdings when payments were made electronically, with "paper traces" of transactions that could easily be examined by the government. This is expected to reduce the business issues that receive payments but not issue invoices; The tactic has been used by companies to avoid paying VAT (sales) taxes and income taxes.
As of July 28, 2017, many businesses are required by law to install devices for sale so they can accept payments by credit or debit card. Failure to comply with electronic payment facilities may result in a fine of up to 1,500 euros. These requirements apply to about 400,000 companies or individuals in 85 professions. The use of a larger card is one factor that has achieved a significant increase in VAT collection by 2016.
Wealth and living standards
National and regional GDP
The most economically important region of Greece is Attica, which accounts for EUR85.579 billion for the economy in 2014, and Central Macedonia, which donated EUR23.859 billion. The smallest regional economies are the countries in the North Aegean (EUR2.545 billion) and the Ionian Islands (EUR3.137 billion).
In terms of GDP per capita, Attica (EUR22.200) is much higher than other Greek regions. The poorest regions in 2014 are Eastern Macedonia and Thrace (EUR11.200) and Epirus (EUR11.400). At the national level, GDP per capita by 2014 is EUR16,200.
Welfare conditions
Greece is a welfare state that provides a number of social services such as universal health care and pensions. In the 2012 budget, welfare state spending (excluding education) is estimated at EUR22,487 billion (EUR6,577 billion for pensions and EUR15.910 billion for social security and health care costs), or 31.9% of all states. cost.
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According to the 2016 Forbes Global 2000 index, the largest publicly traded company in Greece is:
Labor force
Working hours
In 2012, the average Greek worker worked for 2034 hours each year; This figure is the third highest among OECD countries.
Currency
Between 1832 and 2002 the Greek currency is a drachma. After signing the Maastricht Treaty, Greece appealed to join the eurozone. The two main convergence criteria are a maximum budget deficit of 3% of GDP and public debt that declines if it is above 60% of GDP. Greece meets the criteria as shown in the 1999 annual public account. On January 1, 2001, Greece joined the eurozone, with the adoption of the euro at a fixed exchange rate? 340.75 to EUR1. However, in 2001 the euro existed only electronically, so the physical exchange from drachma to euro only occurred on January 1, 2002. This was followed by a ten-year period for the drachma exchange to the euro, which ended on March 1, 2012.
Before the adoption of the euro, 64% of Greeks viewed the new currency positively, but in February 2005 it fell to 26% and in June 2005 fell again to 20%. Since 2010, that number has increased again, and a survey in September 2011 showed that 63% of Greeks viewed the euro positively.
Gallery chart
Unemployment rate
IMF estimates say that Greece's unemployment rate will reach a 14.8 percent high in 2012 and fall to 14.1 in 2014. But in reality, the Greek economy is experiencing prolonged unemployment. The unemployment rate is between 9 percent and 11 percent in 2009, and soared to 28 percent by 2013. By 2015, Greece's unemployment rate is around 24 percent. It is estimated that the potential of Greek output has been eroded by this prolonged massive unemployment due to the associated hysteresis effect.
Poverty
Greece has been hit hard with recession and austerity measures have been put in place and poverty has increased. Those living in extreme poverty increased to 15% by 2015, up from 8.9% in 2011, and a substantial increase from 2009 when not more than 2.2%. People at risk for poverty or social exclusion are one in three or 35.7%. The rate among children 0-17 is 17.6% and for young people 18-29, this figure is 24.4%. With unemployment rising, unemployed people are at the highest risk at 70-75%, up from less than 50% in 2011. With increasingly difficult jobs gained, a quarter of the population is not working, and for people under 25, the tariff 50%. In some of the more severe regions of western Greece, the younger generation's youth unemployment rate is over 60%. When people lose their jobs for more than two years, they lose their health insurance, increasingly improving the problems of the poor. When younger people do not work, they rely on the older generation of their families to provide for them to get through tough times. However, long-term unemployment across the country caused pensions to decrease as they earn less money from working population, so older generations earn less money to provide for the younger generation and their entire families, putting more of them in poverty. Many aspects of economic problems add to the problem. The Greeks continued to lose their jobs and wage cuts, as well as deep cuts in workers' compensation and social welfare benefits. For those who work, their salary goes down. From 2008 to 2013, the Greeks on average become 40% poorer, and by 2014 see their disposable household income fall below the 2003 level. The 2016 Greek Economic Survey shows optimism in a stronger recovery in 2017 by using things like on-site reform and off-the-job investment to help change the course of high poverty.
References
Further reading
- Pasiouras, Fotios. Greek Banking: From Pre-Euro Reform to the Financial Crisis and Beyond (Palgrave Macmillan; 2012) 217 ​​â €
- Manolopoulos, J. Greek 'Odious' Debt: Looting of the Hellenic Republic by the Euro, Political Elite and the Investment Community . London, May 2011: Anthem Press. Archived from the original on August 17, 2011. < span>
External links
- The Greek Economy Ten Years After The Financial Crisis - Macro Affairs
- Nick Malkoutzis Greece - A Year in Crisis - Friedrich-Ebert-Stiftung, June 2011
- The Greek economy: Which Way to Go ?, from the Center for Economic and Policy Research, January 2015
- The Greek Economy - a bi-monthly publication by the Hellenic Statistics Authority on the state of the economy
- Greek Exports - Greek Exporter Database
- Greek Banks Digest - (in English)
- Summary of World Bank Trade Statistics of the Bank of Greece
- Tariffs are applied by Greece as provided by ITC Market Access Map, online databases of customs tariffs and market requirements
- New study on "Greek Economic, Social and Territorial Situation" - European Parliament, Regional Development Committee delegation to Greece, 13 - 15 July 2011
- OECD data for Greece
- Federal Reserve Economic Data for Greece
Source of the article : Wikipedia
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