The Greek economy is the 13th largest in the European Union based on GDP. It relies heavily on services, industry, and shipping with agriculture making up a small portion. Greece suffered greatly during the 2000s financial crisis and eurozone debt crisis, resulting in high unemployment and economic contraction. Key weaknesses include tax evasion, corruption, and rigid labor markets. The document discusses Greece's entry into the EU and eurozone, ongoing debt issues, impacts on various industries, and recent political developments regarding bailout negotiations.

1. GREECE ECONOMY
Prepared By : - BHARAT NIRKHE
APURVA DUBEY
ANJALI SINGH

3. INTRODUCTION
• THE ECONOMY OF GREECE ISTHE 43rd or 50th LARGEST INTHE
WORLDAT $242 BILLION OR $283 BILLION BY NOMINALGDP
OR PURCHASING POWER PARITY RESPECTIVELY.
• ACCORDINGTO WB STATISTICS FORTHEYEAR 2013, GREECE IS
THETHIRTEENTH-LARGEST ECONOMY INTHE 28-MEMBER
EUROPEAN UNION.
• A DEVELOPEDCOUNTRY,THE ECONOMY OF GREECE MAINLY
REVOLVESAROUNDTHE SERVICE SECTOR (80.6%) AND
INDUSTRY (16%)WHILE AGRICULTURE MADE UP AN ESTIMATED
3.4% OFTHE NATIONAL ECONOMIC OUTPUT IN 2012.
• THE GREEK MERCHANT NAVY ISTHE LARGEST INTHE WORLD.

4. INTRODUCTION
• GREECE IS CLASSIFIED AS AN ADVANCED, HIGH-INCOME ECONOMY,
ANDWAS A FOUNDING MEMBER OFTHE ORGANISATION FOR
ECONOMIC CO-OPERATION AND DEVELOPMENT (OECD) ANDTHE
ORGANIZATION OFTHE BLACK SEA ECONOMIC CO-OPERATION
(BSEC).
• THE COUNTRY'S ECONOMY WAS DEVASTATED BYTHE SECOND
WORLD WAR.
• THE HIGH LEVELS OF ECONOMIC GROWTHTHAT FOLLOWED
THROUGHOUTTHE 1950s TO 1970s ARE DUBBEDTHE GREEK
ECONOMIC MIRACLE.
• THE SUBSEQUENT GREAT RECESSION AND GREEK GOVERNMENT-
DEBT CRISIS, A CENTRAL FOCUS OFTHEWIDER EUROZONE CRISIS

5. STRENGTHS AND
WEAKNESSES
• GREECE ENJOYS A HIGH STANDARD OF LIVING ANDVERY
HIGH HUMAN DEVELOPMENT INDEX, RANKING 29TH IN
THE WORLD IN 2012.
• THE SEVERE RECESSION OF RECENTYEARS HAS SEEN
GDP PER CAPITA FALL FROM 94% OFTHE EU AVERAGE IN
2009 TO 73% IN 2013.
• THIS LED CLAIMS THAT GREECE HAD NOT ACTUALLY MET
ALL ACCESSION CRITERIA ANDTHE COMMON
PERCEPTION THAT GREECE ENTERED EUROZONE
THROUGH FALSIFIED DEFICIT NUMBERS.

6. • GREECE'S MAIN INDUSTRIES ARE –
• TOURISM,
• SHIPPING,
• INDUSTRIAL PRODUCTS,
• FOOD ANDTOBACCO PROCESSING,
• TEXTILES, CHEMICALS,
• METAL PRODUCTS,
• MINING AND
• PETROLEUM.
STRENGTHS AND
WEAKNESSES

7. • A STUDY OFTHE PERIOD 1999-2009 BY FORENSIC
ACCOUNTANTS HAS FOUNDTHAT DATA SUBMITTED
TO EUROSTAT BY GREECE AMONG OTHER COUNTRIES
HAD STATISTICAL DISTRIBUTION INCATIVE OF
MANIPULATION
STRENGTHS AND
WEAKNESSES

8. EUROZONE ENTRY

9. EUROZONE ENTRY
• ACCEPTANCE INTOTHE ECONOMIC AND MONETARY
UNION
• BASED ON FOLLOWING CRITERIA :-
• INFLATION RATE,
• PUBLIC DEBT,
• LONG-TERM INTEREST RATES,
• EXCHANGE RATE.
• CURRENCY SWAP

10. • THE GREEK ECONOMY ALSO FACES SIGNIFICANT
PROBLEMS, INCLUDING
• RAPIDLY RISING UNEMPLOYMENT LEVELS,
• TAX EVASION,
• CORRUPTION
• LOW GLOBAL COMPETITIVENESS.
• CORRUPTION PERCEPTIONS INDEX.
• EU'S LOWEST INDEX OF ECONOMIC FREEDOM AND
GLOBAL COMPETITIVENESS INDEX
• ACCUSED OF COVERING UPTHE EXTENT OF ITS MASSIVE
BUDGET DEFICIT
EUROZONE ENTRY

12. GREECE DEBT CRISIS
• BYTHE END OF 2009, AS A RESULT OF A COMBINATION
OF INTERNATIONAL AND LOCAL FACTORSTHE GREEK
ECONOMY FACED ITS MOST-SEVERE CRISIS SINCETHE
RESTORATION OF DEMOCRACY IN 1974.
• INDUSTRIAL PRODUCTION INTHE COUNTRY

13. GREECE DEBT CRISIS

14. • SECTOR’S HARDEST HIT HAS BEENTHE GARMENT
INDUSTRY
• UNEMPLOYMENT SKY ROCKETED
• YOUTH UNEMPLOYMENT PEAKED
GREECE DEBT CRISIS

16. BACKGROUND
• GREECE JOINED NATO
• RESPONSETO GREEK SOVEREIGN DEBT CRISIS
• HUGE CRISIS IN SHIPPING ANDTOURISM SERVICES.
• INTERNATIONAL CREDITORS EXPECTED ITTO
EXPAND SLIGHTLY IN 2014.
• GREEK UNEMPLOYMENT IS AMONGTHE HIGHEST IN
EUROZONE.

17. BACKGROUND

18. RULE OF LAW
• NINETY PERCENT OF HOUSEHOLDS SURVEYED IN 2013
CONSIDERED GREECE’S POLITICAL PARTIESTO BE
CORRUPT.
• NEVERTHELESS,THE JUDICIARY IS INDEPENDENT ANDTHE
CONSTITUTION PROVIDES FOR PUBLICTRIALS.
• PROTECTION OF PROPERTY RIGHTS IS NOT STRONGLY
ENFORCED.

19. REGULATORY EFFICIENCY
• PACE OF REGULATORY REFORM LACKS
• LICENSING BARRIERS IN LAUNCHING A BUSINESS
• LABOUR MARKET REMAINS RIGID AND STAGNANT.
• MONETARY STABILITY ISWEAK
• GREECE IS RECEIVING SUBSTANTIAL SUBSIDIES
FROMTHE EU.

21. LATEST DEVELOPMENTS
• CONTINUING CONCERNS ABOUT GREECE OUTWEIGHEDTHE
PROSPECTS OFTHE EUROPEAN CENTRAL BANK STARTING ITS
QUANTITATIVE EASING PROGRAMTHIS MONTH, MAKING FOR
AN UNCERTAIN STARTTOTHEWEEK FOR STOCK MARKETS .
• IN GREECE,THE ATHENS MARKET FELL 2.45%TO 858.95. EXPORT
ORDERS DETERIORATEDWHILETHE EMPLOYMENT COMPONENT
FELL NEARLYTHREE POINTSTOTHE LOWEST LEVEL SINCEJUNE
2013.
• THE ISM SAID ITS INDEXOF FACTORY ACTIVITY FELLTO 52.9 IN
FEBRUARY FROM 53.5THE MONTH BEFORE,THE LOWEST
READING SINCEJANUARY 2014. ECONOMISTS HAD BEEN
EXPECTING A READING OF 53.1.

23. POVERTY STRICKEN

24. • MANUFACTURING BRAVEDTHE COLDWEATHER IN FEBRUARY,
REPORTING AN UPTURN INTHE PACE OF GROWTH.
• THERE WILL BE ATHIRD GREEK RESCUE PACKAGE OF UPTO €50BN
AND SPAINWILL CONTRIBUTE UPTO 14%, ACCORDINGTO
COMMENTS REPORTEDLY MADE BY SPANISH ECONOMY MINISTER
LUIS DE GUINDOS.
• MORE BAILOUTS COULD BE EXPECTED WITH OTHER HIGHLY
INDEBTED PIIGS NATIONS WAITING INTHE WING
• UNEMPLOYMENT ACROSSTHE EUROZONE FELL BY 1,40,000 PEOPLE
IN JANUARY, PULLINGTHE REGION’S JOBLESS RATE DOWNTO
11.2%
LATEST DEVELOPMENTS

25. LAWMAKERS (JUST NOT GREECE’S) APPROVE
A BAILOUT EXTENSION

26. CONCLUSION
• GREECE’S CREDITORS HAVE BY AND LARGE INSISTEDTHAT
PRIOR AGREEMENTS BE HONORED, ANDTOLDTHE
GOVERNMENTTHAT ITS RADICAL PLANS FOR STATE
LARGESSE ARE OFFTHETABLE.
• A FEWVERBALTWEAKSWHICH CONSIST OFTHE EU,THE IMF
ANDTHE ECBWHERE GIVEN AS A POLITICAL CONCESSIONTO
THE NEWLY ELECTED GOVERNMENT,WHICH HAD CREATED HIGH
EXPECTATIONSWITH ITS ELECTORATE.
• THETENTATIVE AGREEMENTWITH CREDITORS REACHED
PREVIOUSWEEK IS MUCH FAVORABLETO GREECETHANWHAT
WAS ONTHETABLE.GREECE APPEARS ALSOTO LOSE CONTROL
OFTHE ELEVEN EURO BILLION RESERVES OFTHE GREEK
BANKING STABILITY FUND.