Greece’s economy is both large and highly developed, ranking 17th in the EU and 51st globally. The country boasts a high standard of living and a strong human development index, coming in at 32nd in the world.

The economy is heavily focused on services, which make up 80% of GDP, with industry and agriculture making up the remaining 20%. Greece’s most important sectors are tourism and maritime, with the former generating significant revenue for the country, amounting to over 12.5% of GDP directly and around 30% indirectly.

The shipping industry is also a significant contributor to the Greek economy, with the country owning the world’s largest commercial fleet and accounting for around 15% of the world’s ship wealth.

In addition to its economic strengths, Greece is also a significant investor in the Balkans region, ranking first in Albania and third in Bulgaria among foreign investors. It is among the top three major investor countries in Romania and Serbia, and is North Macedonia’s most important trading partner and largest foreign investor.

Greece has been a member of various economic organizations, including the OECD and the Black Sea Economic Cooperation, as well as the European Economic Community and the Economic and Monetary Union of the European Union. It adopted the Euro in 2001, and is a member of the International Monetary Fund and the World Trade Organization.

The Greek workforce is also highly industrious, with a total workforce of 4.9 million and an average of 1,900 working hours per year per employee, according to a study published by the Groningen Development Center. Despite its strengths, Greece faced severe economic challenges due to the global financial crisis in 2008, resulting in negative economic growth rates in 2009.

This was exacerbated by rising debt levels, which led to higher borrowing costs and a severe financial crisis. Greece has been working to address its public deficit, which rose significantly after the global financial crisis.

Industries

GDP by Sector – 1990

GDP by Sector – 2017

Agriculture

Despite the efforts made over the past 30 years, mainly under the auspices of the European Union, the level of cooperative organization in Greece’s agricultural sector remains relatively low. The sector employs 12% of the total workforce, but its contribution to GDP is only 4.1%. Agriculture in the country is reliant on small, scattered family units.

Industry

Greece experienced the highest growth rate in industrial production among all EU members from 2005 to 2011, with an increase of 6% compared to 2005 levels, according to Eurostat statistics. However, the industrial sector was affected by the financial crisis in 2009 and 2010, with domestic production decreasing by 5.8% and overall industrial production declining by 13.4%. Greece is the third-largest producer of marble in the EU, with a production of 920,000 tons, following Italy and Spain.

The retail trade volume in Greece saw an average increase of 4.4% per year from 1999 to 2008, but it decreased by 11.3% in 2009. The industrial sector’s largest employers are in manufacturing, construction, and mining. Greece has a significant shipbuilding and maintenance industry, with six shipyards around the Piraeus port being among the largest in Europe. Greece has recently emerged as a leader in constructing and maintaining luxury yachts.

Services

The services sector, whose share in GDP has approached 80% in recent years, was the only sector in the country that did not show negative growth with a marginal increase of 2.0%.

Navigation

Since ancient times, shipping has been a significant sector of the Greek economy. After the Second World War, the Modern Greek shipping industry was established when Greek ship owners acquired surplus ships sold to them by the US government through the Maritime Sales Act of the 1940s. Greece ranks fourth globally in terms of the number of ships it owns, after China, Japan and Germany. According to research, the Greek flag is the seventh most utilized in international maritime and second in the EU.

Greek companies own 22.6% of tankers and 16.1% of cargo ships worldwide, with shipping revenues of around €15 billion.