Greece

Greece is not only one of the most popular holiday resorts in Europe, but also a country with one of the most intriguing economies. Hundred years ago, the economy was dominated by food processing, ship building (the Greek-owned fleet remains the largest in the world) and manufacturing. Halfway through the 20th century, Greece experienced high rates of growth thanks to foreign investment, not surprisingly called the ‚Greek Economic Miracle‘.

Unfortunately, this didn’t last for long and only joining the EU in early 1980’s helped the economy to pick up. Inflation as well as public sector deficit were growing and the economy struggled, burdened by massive loans. Substantial government intervention was necessary to enable Greece to join the Euro zone (2001).

Recently Greece has enjoyed stable growth while public debt, inflation, and unemployment were above the Euro-zone average. The 2004 Summer Olympic Games helped increase economic development.

The Greek government continues to reform realizing that public sector needs to be further reduced, government spending cut, labor & pension systems reformed. However, the success is uncertain mainly due to powerful labor unions and the general public.