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PRESENTED BY:
KIM KOZAK, JASON LAUB,
ALISE MAZUR, COURTNEY OLSON
ECONOMY OF GREECE
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OVERVIEW
Population: 10.7 MillionCurrency: Euro
Economy: Mixed Capitalist
Government: ParliamentaryRepublic PASOK
Industries: Tourism,Shipping, IndustrialProducts
Labor Force: Services,Industry, Agriculture
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THE LAST 70 YEARS
German Occupation (1941-44)
Civil War (1944-1949)
Political Unrest (1949-1973)
Declared a Republic (1973)Member of European Union (1981)
Member of the World Trade Organization (1995)
Adoption of the Euro (2002)Athens Olympic Games (2004)
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ECONOMIC HISTORY
Ancient Greece & Emergence of Polis
Hellenistic Age
Byzantine Economy
Modern Greece 19th Century: Land Reform
20th Century: Industry, Dichotomization of Drachma, GreatDepression, Shipping, Post-World War II
Recent Developments 1980s: Expansionary Fiscal Policy
1990s: Maastricht Treaty, Entry into Euro Zone
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ECONOMIC MANAGEMENT STYLE
Historically very involved and arguably over generous
Unorganized/ inefficient
Power is held by Prime Minister with a strong Central
Banking SystemCorrupt
Push back from public
Must follow EU policies and guidelines
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CURRENT POLITICAL REFORMS
High pension payouts
High minimum wages for teens and elderly
High tax wages
Large subsidies for public and government entities
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SIGNIFICANT ECONOMIC DATA
Inflation - .5% (Jun 2009)
Unemployment - 7.7 in 2008 expected to rise to 10%in 2010
Labor Force - 4.95MMPopulation below poverty line
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GROSS DOMESTIC PRODUCT
Total GDP: $343 Billion (USD)
Per Capita: $32,000 (USD)
Real GDP Growth Rate: 2.9%
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GDP by Industry (2008)Employed Labor Force by
Industry (2008)
GROSS DOMESTIC PRODUCT
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TRADE POLICY
Trade Group Member European Union
World Trade Organization, World Customs Organization,Organization for Economic Cooperation & Development
Barriers Tariff
Non-Tariff
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Top Product Exports Top Product Imports
TRADE PRODUCTS
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TRADE BALANCE
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EXPORTS
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IMPORTS
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PERFORMANCE COMPARISON (2008)
Country Population GDP(in USD)
GDP(per Capitain USD)
GDPGrowthRate(%)
Public Debt(% of GDP )
InflationRate (%)
Imports(in USD)
Exports(in USD)
Greece 10.74M $343.6 B $32K 2.9% 97.4% 4.4% $48.2B $18.5B
Portugal 10.71M $237.3B $22K (.05%) 66.4% 2.9% $60.4B $38.8B
USA 307.2M $14.4 T $47K 0.4% 60.8% 4.2% $1.73T $927.5B
EU 456.9M $14.9T $34K 0.8% N/A 2.2% $1.69T $1.95T
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ANNUAL GDP COMPARISON (In Billions USD)
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INFLATION COMPARISON
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GDP GROWTH RATE COMPARISON
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GDP PER CAPITA COMPARISON
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UNEMPLOYMENT RATE COMPARISON
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CURRENT ECONOMIC CONDITION & FORECAST
Political Transfer of Power (October 4th, 2009) New PASOK Government
Large promises and a new feeling of optimism
A Debtor Nation Inadequate Domestic Savings & High Public Debt
Highest Current Account Gap in Euro Zone (as % of GDP)
Reliance on Foreign Investment
Expecting its first recession since 1993.
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RECOMMENDATIONS
Need to work on lowering public debit
Focus on increasing revenues & decreasing expenses
Increase tax collection, eliminating unnecessary tax
exemptionsTimely implantation of modern & transparent public
accounting
Reform to wage and pension systems
Reduction in subsidies to public & govt entities
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ANY QUESTIONS?