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 6% (1997 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.)

Currency 1 drachma (Dr) = 100 lepta

Exchange rates drachmae (Dr) per US$1 - 286.99 (January 1998), 273.06 (1997), 240.71 (1996), 231.66 (1995), 242.60 (1994), 229.26 (1993)

Fiscal year calendar year

NOTE: The information regarding Greece on this page is re-published from the 1998 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Greece Economy 1998 information contained here. All suggestions for corrections of any errors about Greece Economy 1998 should be addressed to the CIA.