Economy

Economy--overview: Greece has a mixed capitalist economy with the public sector accounting for roughly half of GDP. Tourism provides a major portion of foreign exchange. Greece is among the poorest EU countries in terms of per capita income; Athens continues to rely heavily on EU aid, which currently amounts to about 4.5% of GDP. Macroeconomic problems include the huge public sector, substantial budget and balance of payments deficits, and 10% unemployment.

Economic growth is strengthening, and the government's strict fiscal and monetary policies are responsible for the decline in inflation and the budget deficit. Despite widespread protests from labor unions and farmers over austerity, the government is taking further steps to enhance revenue collection and reduce expenditures to prepare Greece for participation in the EU's single currency by 2001.

Greece entered the exchange rate mechanism--a requirement for European Monetary Union (EMU) membership--in March 1998.

GDP growth is projected at 3.5% for 1998, inflation at 4%, and unemployment at 8.5% GDP: purchasing power parity--$137.4 billion (1997 est.) GDP--real growth rate: 3.7% (1997 est.) GDP--per capita: purchasing power parity--$13,000 (1997 est.) GDP--composition by sector: agriculture: 11% industry: 25% services: 64% (1994)

Inflation rate--consumer price index: 3% (1999 est.) Labor force: total: 4.21 million by occupation: services 52%, agriculture 23%, industry 25% (1995)

Unemployment rate: 10% (1997 est.)

Budget: revenues: $37 billion (excluding privatization receipts) expenditures: $45 billion, including capital expenditures of $NA (1998 est.) Industries: tourism; food and tobacco processing, textiles; chemicals, metal products; mining, petroleum.

Industrial production growth rate: 0.5% (1997 est.) Electricity--capacity: 8.606 million kW (1995) Electricity--production: 38.814 billion kWh (1995)

Electricity--consumption per capita: 3,720 kWh (1995)

Agriculture--products: wheat, corn, barley, sugar beets, olives, tomatoes, wine, tobacco, potatoes; meat, dairy products.

Exports: total value: $9.8 billion (f.o.b., 1997 est.) commodities: manufactured goods 53%, foodstuffs 34%, fuels 5% (1994) partners: EU 60% (Germany 22%, Italy 14%, France 6%, UK 6%), US 3% (1995) Imports: total value: $27 billion (c.i.f., 1997 est.) commodities: manufactured goods 72%, foodstuffs 15%, fuels 10% (1994) partners: EU 70% (Italy 18%, Germany 16%, France 8%, UK 6%) US 4% (1995) Debt--external: $33 billion (1997 est.) Economic aid: recipient: EU, $5.4 billion (1997 est.)

Communications

Telephones: 5,571,293 (1993 est.) Telephone system: adequate, modern networks reach all areas; microwave radio relay carries most traffic; extensive open-wire network; submarine cables to off-shore islands domestic: microwave radio relay, open wire, and submarine cable international: tropospheric scatter; 8 submarine cables; satellite earth stations - 2 Intelsat (1 Atlantic Ocean and 1 Indian Ocean), 1 Eutelsat, and 1 Inmarsat (Indian Ocean Region) Radio broadcast stations: AM 29, FM 17 (repeaters 20), shortwave 0 Radios: NA Television broadcast stations: 361 (1987 est.) Televisions: 2.3 million (1993 est.)

Transportation

Railways: total: 2,474 km standard gauge: 1,565 km 1.435-m gauge (36 km electrified; 100 km double track) narrow gauge: 887 km 1.000-m gauge; 22 km 0.750-m gauge (a rack type railway for steep grades)

Highways: total: 117,000 km paved: 107,406 km (including 470 km of expressways) unpaved: 9,594 km (1996 est.)

Waterways: 80 km; system consists of three coastal canals; including the Corinth Canal (6 km) which crosses the Isthmus of Corinth connecting the Gulf of Corinth with the Saronic Gulf and shortens the sea voyage from the Adriatic to Peiraiefs (Piraeus) by 325 km; and three unconnected rivers.

Pipelines: crude oil 26 km; petroleum products 547 km

Ports and harbors: Alexandroupolis, Elefsis, Irakleion (Crete), Kavala, Kerkyira, Chalkis, Igoumenitsa, Lavrion, Patrai, Peiraiefs (Piraeus), Thessaloniki, Volos.

Merchant marine: total: 875 ships (1,000 GRT or over) totaling 25,264,916 GRT/45,188,813 DWT ships by type: bulk 354, cargo 74, chemical tanker 22, combination bulk 13, combination ore/oil 15, container 43, liquefied gas tanker 4, multi-function large load carrier 1, oil tanker 229, passenger 14, passenger-cargo 2, refrigerated cargo 4, roll-on/roll-off cargo 18, short-sea passenger 79, specialized tanker 3

Note: Greece owns an additional 1,898 ships (1,000 GRT or over) totaling 69,697,820 DWT operating under the registries of The Bahamas, Belize, Cayman Islands, Cyprus, Liberia, Malta, Panama, Philippines, Saint Vincent and the Grenadines, Singapore, Syria, Vanuatu (1997 est.)

Airports: 78 (1997 est.) Airports--with paved runways: total: 63 over 3,047 m: 5 2,438 to 3,047 m: 16 1,524 to 2,437 m: 16 914 to 1,523 m: 17 under 914 m: 9 (1997 est.) Airports--with unpaved runways: total: 15 1,524 to 2,437 m: 1 914 to 1,523 m: 3 under 914 m: 11 (1997 est.) Heliports: 2 (1997 est.)

Military

Military branches: Hellenic Army, Hellenic Navy, Hellenic Air Force, National Guard, Police Military manpower--military age: 21 years of age Military manpower--availability: males age 15-49: 2,693,116 (1998 est.) Military manpower--fit for military service: males: 2,062,117 (1998 est.) Military manpower--reaching military age annually: males: 78,894 (1998 est.) Military expenditures--dollar figure: $4.04 billion (1998 est.) Military expenditures--percent of GDP: NA%

Transnational Issues

Disputes--international: complex maritime, air, and territorial disputes with Turkey in Aegean Sea; Cyprus question with Turkey; dispute with The Former Yugoslav Republic of Macedonia over name; in September 1995, Skopje and Athens signed an interim accord resolving their dispute over symbols and certain constitutional provisions; Athens also lifted its economic embargo on the Former Yugoslav Republic of Macedonia Illicit drugs: a gateway to Europe for traffickers smuggling cannabis and heroin from the Middle East and Southwest Asia to the West and precursor chemicals to the East; some South American cocaine transits or is consumed in Greece.

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(Source: U. S. Department of Commerce - National Trade Data Bank, May 6, 1999)