Search This Blog

Friday, January 7, 2011

ECONOMIC ANALYSIS

In 2008 Greece was the twenty third economy in the world by GDP and thirty third by purchase price parity(ppp).The tourism industry is a major source of foreign exchange earnings and revenue accounting for 15% of Greece’s total GDP and employing, directly or indirectly, 16.5% of the total workforce.
The Greek labor force totals 4.9 million, and it is the second most industrious between OECD countries, after South Korea. The Groningen Growth & Development Centre has published a poll revealing that between 1995 and 2005, Greece ranked third in the working hours per year ranking among European nations; Greeks worked an average of 1,811 hours per year. In 2007, the average worker produced around 20 dollars per hour, similar to Spain and slightly more than half of average U.S. worker's hourly output. Immigrants make up nearly one-fifth of the work force, occupied mainly in agricultural and construction work.
Greece's purchasing power-adjusted GDP per capita is the world's 25th highest. According to the International Monetary Fund it has an estimated average per capita income of $29,882 for the year 2009, a figure slightly higher than that of Italy and Spain. According to Eurostatdata, Greek PPS GDP per capita stood at 95 per cent of the EU average in 2009. According to a survey by The Economist, the cost of living in Athens is close to 90% of the costs in New York; in rural regions it is lower.
In Greece, the euro was introduced in 2002. As a preparation for this date, the minting of the new euro coins started as early as 2001, however all Greek euro coins introduced in 2002 have this year on it; unlike some other countries of the Eurozone where mint year is minted in the coin. Eight different designs, one per face value, was selected for the Greek coins. In 2007, in order to adopt the new common map like the rest of the Eurozone countries, Greece changed the common side of their coins. Before adopting the Euro in 2002 Greece had maintained use of the Greek drachma from 1832.
Greece has one of the richest collections of collectors' coins in the Eurozone, with face value ranging from 10 to 200 euro, mainly issued to commemorate the 2004 Summer Olympics. These coins are a legacy of an old national practice of minting of silver and gold commemorative coins. Unlike normal issues, these coins are not legal tender in all the eurozone. For instance, a €10 Greek commemorative coin cannot be used in any other country.
In 2009, Greece had the EU's second lowest Index of Economic Freedom (after Poland), ranking 81st in the world. The country suffers from high levels of political and economic corruption and low global competitiveness relative to its EU partners. The Greek economy faces significant problems, including rising unemployment levels and an inefficient government bureaucracy.
Although remaining above the euro area average, economic growth turned negative in 2009 for the first time since 1993. An indication of the trend of over-lending in recent years is the fact that the ratio of loans to savings exceeded 100% during the first half of the year.

2010 Economic Crisis

By the end of 2009, as a result of a combination of international and local factors (respectively, the world financial crisis and uncontrolled government spending), the Greek economy faced its most severe crisis since 1974 as the Greek government revised its deficit from an estimated 6% to 12.7% of gross domestic product (GDP). In early 2010 it was revealed that successive Greek governments had been found to have consistently and deliberately misreported the country's official economic statistics to keep within the monetary union guidelines. This had enabled Greek governments to spend beyond their means, while hiding the actual deficit from the EU overseers. In May 2010, the Greek government deficit was again revised and estimated to be 13.6% which was one of the highest in the world relative to GDP and public debt was forecast, according to some estimates, to hit 120% of GDP during 2010,one of the highest rates in the world
As a consequence, there was a crisis in international confidence in Greece's ability to repay its sovereign debt. In order to avert such a default, in May 2010 the other Eurozone countries, and the International Monetary Fund agreed to a rescue package which involved giving Greece an immediate €45 billion in bail-out loans, with more funds to follow, totaling €110 billion. In order to secure the funding, Greece was required to adopt harsh austerity measures to bring its deficit under control. Their implementation will be monitored and evaluated by the European Commission, the European Central Bank and the International Monetary Fund.
On November 15, 2010, the EU's statistics body Eurostat revised the public finance and debt figure for Greece following an excessive deficit procedure methodological mission in Athens and put Greece's 2009 government deficit at 15.4% of GDP and government debt at 126.8% of GDP making it the biggest deficit (as a percentage of GDP) amongst the EU member nations (although some have speculated that Ireland's in 2010 may prove to be worse)
The shipping industry is a key element of Greek economic activity dating back to ancient times. Today, shipping is one of the country's most important industries. It accounts for 4.5% of GDP, employs about 160,000 people (4% of the workforce), and represents 1/3 of the country's trade deficit.
During the 1960s, the size of the Greek fleet nearly doubled, primarily through the investment undertaken by the shipping magnates Onassisand Niarchos. The basis of the modern Greek maritime industry was formed after World War II when Greek shipping businessmen were able to amass surplus ships sold to them by the United States Government through the Ship Sales Act of the 1940s.
According to the BTS, the Greek-owned maritime fleet is today the largest in the world, with 3,079 vessels accounting for 18% of the world's fleet capacity (making it the largest of any country) with a total dwt of 141,931 thousand (142 million dwt). In terms of ship categories, Greece ranks first in both tankers and dry bulk carriers, fourth in the number of containers, and fourth in other ships. However, today's fleet roster is smaller than an all-time high of 5,000 ships in the late 70's.
TOURISM INDUSTRY
An important percentage of Greece's income comes from tourism. In 2004 Greece welcomed 16.5 million tourists. According to a survey conducted in People's Republic of China in 2005, Greece was voted as the Chinese people's number one choice as a tourist destination, and 6,088,287 tourists visited only the city of Athens, the capital city. In November 2006, Austria, like China, announced that Greece was the favourite destination
 largest

No comments:

Post a Comment