Greece Economy

Greece Economy

The Greek economy is ranked 42nd largest in the world in terms of nominal gross domestic product during 2012, according to the World Bank. It is also ranked 13th among the economies of the 27 member countries of the European Union. The economy of Greece is based mostly on the service and industry sector, with agriculture providing about 3% of the total gross domestic product of the country. Its industries include tourism, merchant shipping (being the largest merchant marine in the world in terms of total capacity), and a producer of agricultural products.

In the primary sector, Greece is the largest producer of cotton and pistachios in the European Union. Other important agricultural products include rice, olives, tomatoes, watermelons and tobacco. Organic farming has also increased considerably in the country. In the industry sector, the recent crisis hit hard various industries. Indicative industries of Greece include cement, pharmaceuticals, concrete, beverages and beer, dairy and cigarettes. In the tertiary sector of services, shipping has played a key role in the Greek economy since antiquity, and was recently boosted during the 1960s by shipping magnates Onassis and Niarchos. The tourism sector has also been a major component of the Greek economy, especially after the 1950s, ranking the country 10th in the world in terms of tourist expenditure. Recently, various tourism – related organizations, such as Lonely Planet, have included Greece in their “hot” guides and lists.

The Greek economy has suffered from a number of factors, such as tax evasion, which has reached a very high level in recent years. The Great Recession as well as the Greek government – debt crisis only worsened the matter, causing a sharp plunge of the economy of Greece in the past few years. During 2012, Greece negotiated the biggest debt restructuring in history with the private sector, managing to reduce its sovereign debt to somehow more manageable levels.