Greece

Greece achieved independence from the Ottoman Empire in 1829. In World War II, Greece was first invaded by Italy (1940) and subsequently occupied by Germany (1941-44); fighting endured in a protracted civil war between supporters of the king and Communist rebels. Following the latter's defeat in 1949, Greece joined NATO in 1952. A military dictatorship, which in 1967 suspended many political liberties and forced the king to flee the country, lasted seven years. The 1974 democratic elections and a referendum created a parliamentary republic and abolished the monarchy. In 1981 Greece joined the EC (now the EU); it became the 12th member of the euro zone in 2001.

Main Airports

Athens (ATH) (Elfetherios Veniselos), Corfu (CFU) (Kerkira), Thessaloniki (SKG) (Macedonia)

U.S. Embassy

91 Vasilissis Sophias Blvd., 10160 Athens
tel: [30] (210) 721-2951 or 721-8401, after hours 729-4444

Statistics

GDP: purchasing power parity:

$236.8 billion (2005 est.)

GDP - real growth rate:

3.7% (2005 est.)

GDP - per capita: purchasing power parity:

22,200 (2005 est.)

Inflation rate (consumer prices):

3.5% (2005 est.)

Labor force:

4.72 million (2005 est.)

Exports:

$18.54 billion f.o.b. (2005 est.)

Exports - partners:

Germany 12.4%, Italy 10.4%, UK 6.7%, Bulgaria 5.9%, US 5.3%, Cyprus 5.2%, Turkey 5.1%, France 4.2% (2005)

Imports:

$48.2 billion f.o.b. (2005 est.)

Imports - partners:

Germany 12.7%, Italy 12.4%, Russia 7.8%, France 5.7%, Netherlands 5.5%, Saudi Arabia 4.1% (2005)

Population:

10,688,058 (July 2006 est.)

Population growth rate:

0.18% (2006 est.)

Population Below Poverty Line:

NA%

Major Industries:

tourism, food and tobacco processing, textiles, chemicals, metal products; mining, petroleum

Employing Workers: 166*

Registering Property: 94*

Enforcing Contracts: 48*

Closing a Business: 34*

*2006 World Bank rank out of 175 countries

Starting a Business

The table below shows the number of steps and the amount of time needed to start a business, on average

Indicator	Greece	Region
Procedures (number)	15
Time (days)	38

Greece Risk Assessment

Country Rating

Rating: A2

The political and economic situation is good. A basically stable and efficient business environment nonetheless leaves room for improvement. Corporate default probability is low on average.

Risk Assessment

The economy continued to grow strongly in 2007 driven by domestic demand. Household consumption continued to benefit from a bright job picture, wage growth, and a credit expansion. The reduction of corporate income tax and the undertaking of large infrastructure projects have spurred corporate investment. Although exports continued to grow the increase was not enough to significantly reduce the current account deficit with imports still rising too rapidly. The public sector deficit remained under control despite additional spending associated with the summer fires and preparations for early general elections. Proceeds from privatisations were allocated to the reduction of public sector debt.

The economy will post strong growth again in 2008. Households spending will continue at a high rate despite high interest rates and slower wage growth. Continuation of public investment programmes partly funded by Europe will spur corporate investment and construction. The current account balance will continue to show a large deficit despite very good export performance supported by the dynamism of the tourism industry and the merchant navy, which has capitalised on the increase in world trade and freight rates. The reduction of the public deficit may be significant thanks to the slowdown of government operating expenses and the additional revenues resulting from taxes both indirect (VAT) and direct (the campaign against tax evasion). Continuation of the privatisation programme, particularly in the telecommunications sector, will contribute to reduction of public debt pending the health and pension system reforms essential to keeping public accounts under control in the medium term.

The downward bankruptcy trend and stabilisation of the Coface payment incident index near the world average reflect the buoyant growth. Corporate profitability has improved thanks to the reduction of income tax, modernisation of the financial system, and reform of the corporate legal framework. Weaknesses have persisted in the clothing and shoe industries, both exposed to Asian and Eastern European and in commercial distribution where small family companies will continue to suffer from the competition of major international players. In the export market, the competitiveness of Greek companies has been eroding, affected by unit labour costs higher than those of euro zone partners.
The A2 business climate rating is born out by the complex and ponderous implementation of legal collection procedures.

• Agriculture
• Apparel
• Arts & Crafts
• Automobile
• Bags, Cases & Boxes
• Chemicals
• Computer Hardware & Software
• Construction & Real Estate
• Consumer Electronics
• Electrical & Electronics
• Energy & Environment
• Food & Beverage
• Furniture & Furnishing
• Health & Medicine
• Home Supplies
• Industrial Supplies
• Lights & Lighting
• Machinery
• Mineral & Materials
• Office Supplies
• Security & Protection
• Service
• Sports & Entertainment
• Telecommunications
• Textile
• Toys
• Transportation