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Greece

Greece Economy Stats

Author: chris.lockyer781

Author: chris.lockyer781

Greece is a pretty wealthy country. Greek GDP (Gross Domestic Product) is measured to be $249.1 billion. According to official stats, the Greek economy reached 41st place in 2012. This position is pretty impressive for a small country (93th worldwide) like Greece. There are many reasons that have helped make Greece a prosperous country. The fertile Greek land (agriculture and subsoil) and sea offer high-quality products like olive oil, fish, lignite and iron ore. Greece’s strategic position has attracted many successful corporations as a distribution center. Recent commerce data shows that Greek exports reached $20.09 billion in 2009. Tourism also provides a big piece of revenue in Greece. Generally speaking, the Greek economy is largely supported by small and privately-owned businesses. One in 1,680 Greeks have their own business. The total number of Greek businesses is 6,407.

Wealth distribution is pretty unequal in Greece. According to 2002 stats, 10% of the population owns 25.3% of the income distribution, while another tenth of the population holds only 3% of the total income distribution. But during the last few decades, Greek productivity has made small, steady steps forward. A good example is the comparison between Greek GDP values over the last 62 years. In 1950, Greek GDP per capita was only $1,951. By 1973, Greek GDP had almost quadrupled ($7,779), while it reached $22,082.89 in 2012. Another interesting fact is the Purchasing Power Parity (PPP) of Greek people in 2004. Greeks were spending 6.6% more on goods than they could produce, or economically speaking Greek used to spend 106.6% of total GDP.

Nowadays, the strength of the Greek economy has weakened because of wrong political decisions and deep layers of deception and corruption among public authorities. These decisions have brought austerity to Greece. In May 2010, Greece received a €110 billion loan from EU and IMF (International Monetary Fund) as part of the first memorandum. An additional financial loan of €130 billion was given to Greek government. The second memorandum was even tougher for Greeks. The execution of a swap and a generous haircut of the face value (53.5%) were the knockout blow for the Greek economy.

Greek debt is enormous. A new memorandum is in sight, so no one can be sure about the future of the Greek economy.

Overview:

Greece has a capitalist economy with the public sector accounting for about 40% of GDP and with per capita GDP about two-thirds that of the leading euro-zone economies. Tourism provides 15% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP. The Greek economy grew by nearly 4.0% per year between 2003 and 2007, due partly to infrastructural spending related to the 2004 Athens Olympic Games, and in part to an increased availability of credit, which has sustained record levels of consumer spending. But the economy went into recession in 2009 as a result of the world financial crisis, tightening credit conditions, and Athens' failure to address a growing budget deficit, which was triggered by falling state revenues, and increased government expenditures. The economy contracted by 2% in 2009, and 4.8% in 2010. Greece violated the EU's Growth and Stability Pact budget deficit criterion of no more than 3% of GDP from 2001 to 2006, but finally met that criterion in 2007-08, before exceeding it again in 2009, with the deficit reaching 15.4% of GDP. Austerity measures reduced the deficit to 9.4% of GDP in 2010. Public debt, inflation, and unemployment are above the euro-zone average while per capita income is below; unemployment rose to 12% in 2010. Eroding public finances, a credibility gap stemming from inaccurate and misreported statistics, and consistent underperformance on following through with reforms prompted major credit rating agencies in late 2009 to downgrade Greece's international debt rating, and has led the country into a financial crisis. Under intense pressure by the EU and international market participants, the government has adopted a medium-term austerity program that includes cutting government spending, reducing the size of the public sector, decreasing tax evasion, reforming the health care and pension systems, and improving competitiveness through structural reforms to the labor and product markets. Athens, however, faces long-term challenges to push through unpopular reforms in the face of often vocal opposition from the country's powerful labor unions and the general public. Greek labor unions are striking over new austerity measures, but the strikes so far have had a limited impact on the government's will to adopt reforms. An uptick in widespread unrest, however, could challenge the government's ability to implement reforms and meet budget targets, and could also lead to rioting or violence. In April 2010 a leading credit agency assigned Greek debt its lowest possible credit rating; in May, the International Monetary Fund and Eurozone governments provided Greece emergency short- and medium-term loans worth $147 billion so that the country could make debt repayments to creditors. In exchange for the largest bailout ever assembled, the government announced combined spending cuts and tax increases totaling $40 billion over three years, on top of the tough austerity measures already taken. Greece, however, struggled to boost revenues and cut spending to meet 2010 targets set by the EU and the IMF, especially after Eurostat - the EU's statistical office - revised upward Greece's deficit and debt numbers for 2009 and 2010. Greece's lenders are calling on Athens to step up efforts in 2011 to increase tax collection, shore up public enterprises, and rein in health spending, and are planning to give Greece more time to repay its EU-IMF loan. Greece responded by introducing major structural reforms, but investors still question whether Greece can sustain fiscal efforts in the face of a bleak economic outlook and public discontent.

Definitions

  • Debt > External: Total public and private debt owed to non-residents repayable in foreign currency, goods, or services.
  • Debt > External per capita: Total public and private debt owed to non-residents repayable in foreign currency, goods, or services. Figures expressed per capita for the same year.
  • GDP: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used.
  • GDP > Composition by sector > Agriculture: The gross domestic product (GDP) or value of all final goods produced by the agricultural sector within a nation in a given year. GDP dollar estimates in the Factbook are derived from purchasing power parity (PPP) calculations. See the CIA World Factbook for more information.
  • GDP > Composition by sector > Industry: The gross domestic product (GDP) or value of all final goods produced by the industrial sector within a nation in a given year. GDP dollar estimates in the Factbook are derived from purchasing power parity (PPP) calculations. See the CIA World Factbook for more information.
  • GDP > Composition by sector > Services: The gross domestic product (GDP) or value of all final services produced within a nation in a given year. GDP dollar estimates in the Factbook are derived from purchasing power parity (PPP) calculations. See the CIA World Factbook for more information.
  • GDP > Official exchange rate: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at offical exchange rates (OER) is the home-currency-denominated annual GDP figure divided by the bilateral average US exchange rate with that country in that year. The measure is simple to compute and gives a precise measure of the value of output. Many economists prefer this measure when gauging the economic power an economy maintains vis-a-vis its neighbors, judging that an exchange rate captures the purchasing power a nation enjoys in the international marketplace. Official exchange rates, however, can be artifically fixed and/or subject to manipulation - resulting in claims of the country having an under- or over-valued currency - and are not necessarily the equivalent of a market-determined exchange rate. Moreover, even if the official exchange rate is market-determined, market exchange rates are frequently established by a relatively small set of goods and services (the ones the country trades) and may not capture the value of the larger set of goods the country produces. Furthermore, OER-converted GDP is not well suited to comparing domestic GDP over time, since appreciation/depreciation from one year to the next will make the OER GDP value rise/fall regardless of whether home-currency-denominated GDP changed.
  • GDP > Purchasing power parity: This entry gives the gross domestic product (GDP) or value of all final goods and services produced within a nation in a given year. A nation's GDP at purchasing power parity (PPP) exchange rates is the sum value of all goods and services produced in the country valued at prices prevailing in the United States. This is the measure most economists prefer when looking at per-capita welfare and when comparing living conditions or use of resources across countries. The measure is difficult to compute, as a US dollar value has to be assigned to all goods and services in the country regardless of whether these goods and services have a direct equivalent in the United States (for example, the value of an ox-cart or non-US military equipment); as a result, PPP estimates for some countries are based on a small and sometimes different set of goods and services. In addition, many countries do not formally participate in the World Bank's PPP project that calculates these measures, so the resulting GDP estimates for these countries may lack precision. For many developing countries, PPP-based GDP measures are multiples of the official exchange rate (OER) measure. The difference between the OER- and PPP-denominated GDP values for most of the weathly industrialized countries are generally much smaller.
  • GDP per capita: GDP at purchaser's prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources. Data are in current U.S. dollars. Dollar figures for GDP are converted from domestic currencies using single year official exchange rates. For a few countries where the official exchange rate does not reflect the rate effectively applied to actual foreign exchange transactions, an alternative conversion factor is used. Figures expressed per capita for the same year.
  • GINI index: Gini index measures the extent to which the distribution of income (or, in some cases, consumption expenditure) among individuals or households within an economy deviates from a perfectly equal distribution. A Lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting with the poorest individual or household. The Gini index measures the area between the Lorenz curve and a hypothetical line of absolute equality, expressed as a percentage of the maximum area under the line. Thus a Gini index of 0 represents perfect equality, while an index of 100 implies perfect inequality.
  • Gross National Income: GNI, Atlas method (current US$). GNI (formerly GNP) is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and prop).
  • Human Development Index: The human development index values in this table were calculated using a consistent methodology and consistent data series. They are not strictly comparable with those in earlier Human Development Reports.
  • Population below poverty line: National estimates of the percentage of the population lying below the poverty line are based on surveys of sub-groups, with the results weighted by the number of people in each group. Definitions of poverty vary considerably among nations. For example, rich nations generally employ more generous standards of poverty than poor nations.
  • Public debt: This entry records the cumulatiive total of all government borrowings less repayments that are denominated in a country's home currency. Public debt should not be confused with external debt, which reflects the foreign currency liabilities of both the private and public sector and must be financed out of foreign exchange earnings.
  • Tourist arrivals: International inbound tourists (overnight visitors) are the number of tourists who travel to a country other than that in which they have their usual residence, but outside their usual environment, for a period not exceeding 12 months and whose main purpose in visiting is other than an activity remunerated from within the country visited. When data on number of tourists are not available, the number of visitors, which includes tourists, same-day visitors, cruise passengers, and crew members, is shown instead. Sources and collection methods for arrivals differ across countries. In some cases data are from border statistics (police, immigration, and the like) and supplemented by border surveys. In other cases data are from tourism accommodation establishments. For some countries number of arrivals is limited to arrivals by air and for others to arrivals staying in hotels. Some countries include arrivals of nationals residing abroad while others do not. Caution should thus be used in comparing arrivals across countries. The data on inbound tourists refer to the number of arrivals, not to the number of people traveling. Thus a person who makes several trips to a country during a given period is counted each time as a new arrival."
STAT AMOUNT DATE RANK HISTORY
Debt > External $576.6 billion 2012 23th out of 172
Debt > External per capita $33,191.09 2007 17th out of 130
GDP $249.1 billion 2012 41st out of 177
GDP > Composition by sector > Agriculture 3.8% 2012 141st out of 218
GDP > Composition by sector > Industry 16% 2012 180th out of 217
GDP > Composition by sector > Services 80.1% 2012 12th out of 179
GDP > Official exchange rate $245.8 billion 2012 42nd out of 191
GDP > Purchasing power parity $273.9 billion 2012 46th out of 190
GDP per capita $22,082.89 2012 31st out of 177
GINI index 34.27 2000 25th out of 40
Gross National Income $121 billion 2001 29th out of 158
Human Development Index 0.912 2006 24th out of 177
Population below poverty line 20% 2009 10th out of 16
Public debt 156.9% of GDP 2012 3rd out of 149
Tourist arrivals 15.94 million 2008 16th out of 145

SOURCES: CIA World Factbooks 18 December 2003 to 28 March 2011; CIA World Factbooks 18 December 2003 to 28 March 2011. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.; World Bank national accounts data, and OECD National Accounts data files.; World Bank national accounts data, and OECD National Accounts data files. Population figures from World Bank: (1) United Nations Population Division. World Population Prospects, (2) United Nations Statistical Division. Population and Vital Statistics Report (various years), (3) Census reports and other statistical publications from national statistical offices, (4) Eurostat: Demographic Statistics, (5) Secretariat of the Pacific Community: Statistics and Demography Programme, and (6) U.S. Census Bureau: International Database.; World Development Indicators database; Human Development Report 2006, United Nations Development Programme; CIA World Factbooks 18 December 2003 to 28 March 2011; World Tourism Organisation, Yearbook of Tourism Statistics, Compendium of Tourism Statistics and data files.

Citation

"Greece Economy Stats", NationMaster. Retrieved from http://www.nationmaster.com/country-info/profiles/Greece/Economy

NationMaster

5

Greece is a pretty wealthy country. Greek GDP (Gross Domestic Product) is measured to be $249.1 billion. According to official stats, the Greek economy reached 41st place in 2012. This position is pretty impressive for a small country (93th worldwide) like Greece. There are many reasons that have helped make Greece a prosperous country. The fertile Greek land (agriculture and subsoil) and sea offer high-quality products like olive oil, fish, lignite and iron ore. Greece’s strategic position has attracted many successful corporations as a distribution center. Recent commerce data shows that Greek exports reached $20.09 billion in 2009. Tourism also provides a big piece of revenue in Greece. Generally speaking, the Greek economy is largely supported by small and privately-owned businesses. One in 1,680 Greeks have their own business. The total number of Greek businesses is 6,407.

Wealth distribution is pretty unequal in Greece. According to 2002 stats, 10% of the population owns 25.3% of the income distribution, while another tenth of the population holds only 3% of the total income distribution. But during the last few decades, Greek productivity has made small, steady steps forward. A good example is the comparison between Greek GDP values over the last 62 years. In 1950, Greek GDP per capita was only $1,951. By 1973, Greek GDP had almost quadrupled ($7,779), while it reached $22,082.89 in 2012. Another interesting fact is the Purchasing Power Parity (PPP) of Greek people in 2004. Greeks were spending 6.6% more on goods than they could produce, or economically speaking Greek used to spend 106.6% of total GDP.

Nowadays, the strength of the Greek economy has weakened because of wrong political decisions and deep layers of deception and corruption among public authorities. These decisions have brought austerity to Greece. In May 2010, Greece received a €110 billion loan from EU and IMF (International Monetary Fund) as part of the first memorandum. An additional financial loan of €130 billion was given to Greek government. The second memorandum was even tougher for Greeks. The execution of a swap and a generous haircut of the face value (53.5%) were the knockout blow for the Greek economy.

Greek debt is enormous. A new memorandum is in sight, so no one can be sure about the future of the Greek economy.

Posted on 09 Apr 2014

chris.lockyer781

chris.lockyer781

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