Greece: the economy today (briefly). Characteristics of the Greek economy. Economy of Ancient Greece

2024 Author: Henry Conors | [email protected]. Last modified: 2024-02-12 02:47

Greece is a unitary state located in the southern part of Europe. According to the latest estimates, the country's population is just over 11 million people. The Greek Republic covers an area of 132 thousand square meters. km. Today, the state is experiencing colossal economic problems, resulting in endless strikes, riots, speculation and provocations on the streets of large cities.

Description of the country

The capital of Greece is Athens. The main body of legislative power is the Parliament. Since the spring of 2015, Prokopis Pavlopoulos has been the President of the Republic. Greece became independent in 1821, separating from the Ottoman Caliphate. The unitary state is located on the Balkan Peninsula. Numerous territorial islands fall under the jurisdiction of the country. Greece itself is divided into 13 administrative regions. It is washed by the Thracian, Icarian, Aegean, Cretan, Ionian and Mediterranean seas. Shared land border with countries such as Albania, Bulgaria, Turkey and Macedonia. The population is 98% Orthodox.

Despite the rich cultural and historical heritage, today's position of Greece in world politics and economy is becoming more precarious every day. The republic is dominated by agricultural and industrial sectors. Tourism also occupies a significant part in the state's profitability.

The birth of the economy

Ancient Hellas is called the ancient settlements that appeared at the beginning of the first millennium BC. e. on the coast and islands of the Mediterranean. In those days, the most advanced civilizations were just Rome and Greece. The economy was based on the slave system. It was private property that was the foundation of economic activity. Civil society and statehood were formed gradually with the development of democratic institutions. Initially, Hellas was an aristocratic republic. The economy of Ancient Greece was completely dependent on the economic activities of the policies, which were formed as a result of communal decomposition. Each such city united the property of all aristocrats. The members of the pole had political and civil rights. It was they who laid the foundation for monetary and commodity relations.

The primary sector of the economy was agriculture, such as growing grapes and olives. Cattle breeding followed (sheep, goats, etc.). Craftsmen and farmers were engaged in trade. Even in those ancient times, the lands of Hellas were rich in such useful resources as copper, silver, gold, lead and marble.

Development of modern economy

The rise of financialindicators date back to 1996. Thus, the GNP amounted to about 120 billion dollars. It's $11.5 thousand per person per year. Then, in terms of dynamic indicators of profitability growth, Greece was among the leaders of European countries. The economy of the republic at that time was based on successful agriculture and industry. The share of these industries was more than 55%. The remaining percentage was divided among themselves by the service sector and taxes from tourism organizations. Unemployment did not exceed 11%. The beginning of the 21st century was marked by serious financial changes for the country. Foreign investors have flocked to Greece. On the one hand, it stabilized the economy and closed the gaps on some important items. On the other hand, the national system had to adapt to Western integration. As a result, Greece began to systematically yield to its partners in the European Union. Only multibillion-dollar loans from American, Italian, French, Swiss and German banks helped maintain capital.

However, the main characteristic of the Greek economy by sector has remained virtually unchanged. GDP from agriculture is 8.3%, from the industrial zone - up to 27.3%, from services - over 64.4%. At the same time, the needs of citizens in liquid fuel are covered only by imports.

General indicators of the economy

Greece has long been considered one of the most agriculturally developed countries in Europe. The country's economy in this equivalent surpasses even some of the primary members of the EU. The only downsidewhich hinders the industrial development of Greece, is the average level of production. The public sector provides a little less than half of GDP. This is achieved thanks to a well-developed trade and banking system. Both insurance companies and travel companies bring their share of income. As for industry, the textile, petrochemical, food and metallurgical industries have recently been the most profitable. In turn, the railway communication is poorly developed, which cannot be said about air and sea.

In general, the Greek economy is briefly characterized by two components: the stagnation of the banking system and slow GDP growth. It should be noted that about 20% of the money turnover is occupied by shadow tranches.

Industry and agriculture

The sectoral structure of the country is developed unevenly and disproportionately throughout the territory. But in the field of light industry, one of the main powers is, again, Greece. The country's economy is replenished from this industry by almost 19%. At the same time, more than 21% of the population is involved in light industry.

Nickel ores, bauxites, emery, magnesites, pyrites are being actively mined. Steel production, mechanical engineering, and woodworking are widely developed. The textile industry is considered a priority. Shipping is important for the economy. Agriculture is based on private farming associations. Due to them, the Greek economy is annually replenished by 7%, which is about 16 billion dollars. The agricultural spectrum includesanimal husbandry, agriculture and fishing. To date, 41% of the country's land is occupied by pastures, another 39% by forests and arable land.

Tourist yield

Greece is visited by about 20 million visitors every year. Tourists bring more than 15% of GDP to the state treasury.

The most frequented places are the beaches. Lovers of sunbathing and swimming come every summer to Athens, Chora, Heraklion, Thessaloniki and other large resort cities. Tourists are attracted by their beauty and unimaginable atmosphere of harmony and islands such as Rhodes, Crete, Santorini, Peloponnese, Mykonos. It would not be out of place to say about the numerous cruise tours in the Mediterranean.

Nevertheless, in the last couple of years there has been a significant departure of tourists. Only in the first half of 2015 they were 22% less than predicted. Thus, the Greek economy missed about 6.8 billion dollars. Many tourists note that recently it is more profitable to go on vacation to the Crimea, Bulgaria or Turkey. There, prices are more loyal, and the quality of services is better.

Debt Crisis

Greece investment loans grow inexorably every year. To date, the external debt of the state is more than 450 billion euros. This amount exceeds the annual GDP by almost 2 times. It turns out that in such a once successful country as Greece, the economy hangs in the balance.

According to experts, the total debt by 2018 could reach 600 billion euros. It's unprecedenteda case that puzzled not only the Greek banking system, but also European associations. Naturally, there are no dividends in the country even for the minimum debt repayment. The Greek government hastily began to offer loyal privatization programs to large investors. However, this will only delay the inevitable. The country has already defaulted.

Causes of the financial crisis

Greece economy today is at the stage of stagnation. In January 2015, a new Government was formed in the country. The task of the ministers was to find alternative ways to stabilize the economy without the help of the European Central Bank. In March 2015, Greece refused to pay its debt, seeking in a tough form its partial write-off. In June, the International Monetary Fund stopped all transactions with Athens. Progress has not been achieved with the Central Bank of Europe. Moreover, at the beginning of July, the Government supported the results of the referendum on the rejection of EU assistance. Thus, the Greek economy today is a deep default, a way out of which will not be found soon.

Loan assistance

A ghostly chance to stabilize the crisis is the acceptance of the conditions of the European Commission. The organization is ready to provide Greece with a short-term loan of 7 billion euros. This will help temporarily bring the country out of default. However, this amount will need to be repaid before October of the current year inclusive.

Along with the loan to Greece, other conditions have been set, which will be approved by the EU special commission. According tothe latest news is clear that the party of Alexis Tsipras and the majority of parliamentarians voted to approve the deal with the EU. Now Greece will get a chance for a partial economic recovery.