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ECONOMY OF GREECE

PRESENTED BY:
KIM KOZAK, JASON LAUB,
ALISE MAZUR, COURTNEY OLSON
AGENDA

Overview / History
Economic Management Style
Financials
GDP
Trade
Performance Comparison
Current Economic Condition & Forecast
Recommendations
OVERVIEW
Population: 10.7 Million
Currency: Euro
Economy: Mixed Capitalist
Government: Parliamentary
Republic – PASOK
Industries: Tourism,
Shipping, Industrial
Products
Labor Force: Services,
Industry, Agriculture
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)
ECONOMIC HISTORY

Ancient Greece & Emergence of Polis


Hellenistic Age
Byzantine Economy
Modern Greece
 19th Century: Land Reform
 20th Century: Industry, Dichotomization of Drachma, Great
Depression, Shipping, Post-World War II
Recent Developments
 1980s: Expansionary Fiscal Policy
 1990s: Maastricht Treaty, Entry into Euro Zone
ECONOMIC MANAGEMENT STYLE

Historically very involved and arguably over generous


Unorganized/ inefficient
Power is held by Prime Minister with a strong Central
Banking System
Corrupt
Push back from public
Must follow EU policies and guidelines
CURRENT POLITICAL REFORMS

High pension payouts


High minimum wages for teens and elderly
High tax wages
 Large subsidies for public and government entities
SIGNIFICANT ECONOMIC DATA

Inflation - .5% (Jun 2009)


Unemployment - 7.7 in 2008 expected to rise to 10%
in 2010
Labor Force - 4.95MM
Population below poverty line <2%
Revenues - $126.5 Billion
Expenses - $144.4 Billion
GROSS DOMESTIC PRODUCT

• Total GDP: $343 Billion (USD)


• Per Capita: $32,000 (USD)
• Real GDP Growth Rate: 2.9%
GROSS DOMESTIC PRODUCT

Employed Labor Force by


GDP by Industry (2008)
Industry (2008)
TRADE POLICY

Trade Group Member


 European Union
 World Trade Organization, World Customs Organization,
Organization for Economic Cooperation & Development
Barriers
 Tariff
 Non-Tariff
TRADE PRODUCTS

Top Product Exports Top Product Imports


TRADE BALANCE
EXPORTS
IMPORTS
PERFORMANCE COMPARISON (2008)

Country Population GDP GDP GDP Inflation Imports Exports


(in USD) (per Capita Growth Public Debt Rate (%) (in USD) (in USD)
in USD) Rate(%) (% of GDP )

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


ANNUAL GDP COMPARISON (In Billions USD)
INFLATION COMPARISON
GDP GROWTH RATE COMPARISON
GDP PER CAPITA COMPARISON
UNEMPLOYMENT RATE COMPARISON
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.
RECOMMENDATIONS

Need to work on lowering public debit


Focus on increasing revenues & decreasing expenses
Increase tax collection, eliminating unnecessary tax
exemptions
Timely implantation of modern & transparent public
accounting
Reform to wage and pension systems
Reduction in subsidies to public & gov’t entities
ANY QUESTIONS?