COUNTRY PROFILES
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COUNTRY PROFILE
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Greece |
Print article The beautiful village of Oia on the Island of Santorini, Greece |
Greece enjoys one of the highest growth rates in the EU and growth is expected to continue into the near future, providing the platform for a growing domestic market. The business environment in Greece has changed dramatically during the last 12 years, with the privatisation and liberalisation of key industries such as energy, transport and telecommunications moving the country towards a thorough free market economy. In the first quarter of 2005, Greece’s annual growth rate was 3.5%, the highest in the Euro zone, despite predictions for a considerable slowdown in the post-Olympics era.
A Business Hub
Greece serves as the business hub for some of the world’s largest multinationals. AIG Group, the Coca-Cola Co., Diageo, Ernst & Young, Kodak, Siemens, Toyota, and UPS have selected Greece as their regional headquarters for Central and Eastern Europe, the Mediterranean, or the Middle East. Greek foreign direct investment contributes to the development and the stabilisation of South-east Europe, with a dynamic network of Greek companies that do business in the Balkans and the Eastern Mediterranean. In less than 10 years, Greek investment in South-east Europe has exceeded €8 billion. Greece is the leading foreign investor in Albania, Bulgaria, and FYROM and ranks among the three leading foreign investors in Romania.
An Energy Hub
In June 2005, Greece signed an agreement with Russia and Bulgaria for the construction of an oil pipeline connecting the Black Sea with the Mediterranean, reducing the costs of transporting oil. Additionally, Greece has signed an agreement with Italy to construct a gas pipeline connecting Greece with Italy. Furthermore, a pipeline connecting Greece with Turkey is under construction.
Tax Reform
The Ministry of Economy and Finance prepared a new Tax Reform Law in December 2004 which aims to reduce the corporate tax rate from 35% to 25% by 2007, simplify taxation regulations, cut red tape, establish transparency in tax audits, spur private investment, and encourage innovation. In Greece there is no double taxation of dividends.
Public-Privat e Partnerships
The new law for Public-Private Partnerships, which was passed in the Greek Parliament in September 2005, lays the foundations for the active development of state-owned real estate and the more efficient provision of public goods and services through partnerships with the private sector.
Investment Incentive Law
The Ministry of Economy and Finance developed and implemented a law for Private Investment Incentives for Economic Development and Regional Convergence, which funds up to 55% of investments made by older or newly established companies. The law is expected to increase employment, improve the competitiveness of the economy, boost entrepreneurship, encourage the investment activities of small and medium enterprises, foster technological change, achieve regional convergence, and simplify complex procedures for the evaluation of investment projects. In addition, special incentives are in place for investment in particular regions.
A vibrant business environment
Services account for just under threequarters of GDP, agriculture about 7%, and manufacturing and industry about 20%. In the service sector, the banking and insurance sectors in particular have undergone significant de-regulation and consolidation, resulting in a highly competitive environment. The energy, construction and telecommunication sectors have also been through significant reforms and have been among the best performers in the Greek economy. Tourism remains a top earner for the country and accounts for about 10% of GDP.
In manufacturing and industry, food processing, mining, textiles, chemicals, and oil refining are the primary areas. Sectors that offer the most potential for trade and investment include telecommunications, energy, tourism and alternative tourism, agriculture, real estate, and leisure. Greek exports are mainly sent to the EU (led by Germany, Italy, UK and France) the US and Cyprus. Greece continues to maintain one of the largest commercial shipping fleets in the world. In Greece, labour costs are among the lowest in the EU and the country has an abundant pool of skilled labourers.
Research and development is fast becoming a leading source of economic activity and research centres in a variety of areas, including renewable energy sources, biotechnology, marine technology, metals and mining, ceramics, and fisheries. As the country’s intellectual capital becomes more developed, it is expected to play a larger role in the economy.
Facts in brief
Greece’s location is Southern Europe, bordering the Aegean Sea, Ionian Sea, and the Mediterranean Sea, between Albania and Turkey. Strategic location dominating the Aegean Sea and southern approach to Turkish Straits; a peninsular country, possessing an archipelago of about 2,000 islands
Its climate is temperate: mild, wet winters; hot, dry summers.
Natural resources include lignite, petroleum, iron ore, bauxite, lead, zinc, nickel, magnesite, marble, salt, hydropower potential
Agricultural products are wheat, corn, barley, sugar beets, olives, tomatoes, wine, tobacco, potatoes; beef, dairy products
Industries include tourism, food and tobacco processing, textiles, chemicals, metal products; mining, petroleum
Greece’s legal system is based on codified Roman law; judiciary divided into civil, criminal, and administrative courts; accepts compulsory ICJ jurisdiction, with reservations
Diplomatic representation in the US — Chief of mission: Ambassador Alexandros Mallias
Diplomatic representation from the US — Chief of mission: Ambassador Charles P Ries
Contact Information
American Hellenic
Chamber of Commerce
Politia Business Center
109-111 Messoghion Avenue
11526 Athens, Greece
Tel: +30 210 699 3559
E-mail:
a.lamnidis@amcham.gr
Website:www.amcham.gr
Useful websites
| www.amcham.gr | American Chamber of Commerce |
| www.invgr.com | Invest in Greece |
| www.elke.gr | Official site for FDI in Greece |
| www.greekembassy.org | US Embassy |
| www.seve.gr | Exporters Association of Northern Greece |
| www.statistics.gr | National Statistics site |
| www.hba.gr | Hellenic Banking Association |