Country Profile

Greece

A strong economy at the hub of southern Europe, with an international outlook, and an infrastructure that has recently undergone massive investment, Greece has attracted major foreign investments in a wide range of sectors, and is now looking to boost investment further.

Research and development is fast becoming a leading source of economic activity and research centers in a variety of areas, including renewable energy sources, biotechnology, marine technology, metals and mining, ceramics, and fisheries. These are expected to play an increasingly important role in driving the economy forward. The business services sector is flourishing, and banking and insurance in particular have undergone significant deregulation 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.

Macroeconomic indicators

In 2006, Greece displayed a rate of growth of some 4.1%, clearly showing that the economy has continued to prosper well after the boost that it gained from massive investment leading up to the Olympic Games in 2004. It is well above the average 2.7% growth for the Eurozone, and is predicted to continue rising into 2009, according to figures from the Ministry of Economy and Finance. Productivity is expected to rise at a rate of some 2% per annum over the same period, and both imports and exports are expected to rise by between 6% and 7% per annum over this period.

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. The US is the largest foreign investor in Greece, responsible for some 23% of projects of the last five years. Other major investors include the UK, Germany and Cyprus.

Greek foreign direct investment contributes to the development and the stabilization of southeast 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 southeast 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.

Business-friendly Environment