Euromoney Country Risk

EUROMONEY COUNTRY RISK

Read the latest analysis on sovereign, geo-political and structural risk

 
Get up to date country risk ratings in 186 countries

Member login



Lost your password?

Euromoney Country Risk

Euromoney Country Risk
List of countries.

Greece Greece

Overview Change score Analyses Experts
 
Sponsored section
Greece

Table of Content


EconomicPoliticalStructural

Greece – Quick View
ECR score52.38 (Mar 2011)
ECR rank65 (Mar 2011)
Economic
GDP 2010USD 228.46 billion
GNI per capita 2009USD 29,040
FDI inflow Q3 2010USD 32,219.60 million
Inflation 20104.7%
Central bank assetsUSD 1,19,601.50 million
Unemployment rate Q3 201012.4%
Government deficit 2010USD 26.02 million
Political
Government typeParliamentary republic
Recent political crisisNA
Economic freedom score88th
Freedom of information score70th
Corruption perception index78th
Structural
Birth rate 200910.45 per ‘000
Population balance0-14 years – 14.30%
Population balance15-64 years – 66.90%
Population balanceAbove 65 years – 18.80%
Life expectancy yearsMale – 77.75 years
Life expectancy yearsFemale – 82.49 years
Mortality rate 20099.60 per ‘000
Literacy rate97%
Internet access46.2%

[Top] Economic Overview

Greece has a mixed capitalist economy with a large public sector. Thus, tourism and the shipping industry contribute approximately 15% of the country’s GDP.

Gross Domestic Product (GDP)

GDP at constant prices

In 2011, GDP at constant prices (2000=100) was recorded as EUR 182.08 billion, increasing 5.80% from 2010.

(Source: Hellenic statistical authority)

GDP at constant prices (2005-2011)

 

(Source: Hellenic statistical authority )

GDP at current prices

GDP at current prices was recorded as EUR 215.88 billion by the end of 2011, falling 5.89% from the previous year.

(Source: Hellenic statistical authority)

GDP at current prices (2005-2011)

Real GDP growth rate

In Q4 2010, GDP decreased by 6.6%, from the previous year.

Greece Real GDP growth rate

(Source: Hellenic statistical authority)

Gross National Income (GNI)

GNI per capita of Greece was USD 26,940 for 2010, decreasing 7.23% from 2010.

GNI (2005-2011)

(Source: World Bank)

Income tax rate

The Individual Income tax rate in Greece varies from 18% to 40%. Greek residents are taxed on their worldwide income and non residents are taxed on the income earned in Greece.

Income tax rates for 2010

Tax Base (EUR)

Tax (%)

0-12,000

0

12,000-16,000

18.00

16,000-22,000

24.00

22,000-26,000

26.00

26,000-32,000

32.00

32,000-40,000

36.00

40,000-60,000

38.00

60,000 and over

40.00

(Source: capitaltaxconsulting.com)

Corporate Tax

The corporate tax rate in Greece was 24% in 2010. However, the tax rate was reduced to 20% in 2011.         

(Source: tax-news.com)

 

Inflation Rate

In 2010, the country recorded a high rate of Inflation mainly due to the 15.1% increase in transportation costs and 7.5% increase in housing prices. Additonally, higher fuel prices and increase in taxes on consumer goods also contributed to the rise in inflation rate. In 2011, the inflation rate decreased significantly, to 3.34%. For the month of February, 2012, the rate of inflation has fallen further, to 2.10%. However, excluding the effects of tax increases and tariffs needed to increase fiscal revenue, inflation was nearly 0 in 2011, much below the Monetary Union's target of 2% on a year-on-year basis. 

Inflation rate (2005-2011)

(Source: Hellenic statistical authority)

Foreign Direct Investment (FDI)

For the third quarter of 2010, the inflow of foreign investment in the country amounted to EUR 24,981 million and direct investment abroad amounted to EUR 28,122 million.

International Investment, EUR million (2007-2010)

 

Direct Investment

Direct Investment abroad

Direct investment inflow in the country

Q3 2010

3,141

28,122

24,981

Q2 2010

2,928

27,747

24,818

Q1 2010

-1,819

27,507

29,326

Q4 2009

-1,835

27,387

29,222

Q3 2009

-9,448

27,458

36,906

Q2 2009

-5,331

27,260

32,591

Q1 2009

115

27,006

26,891

Q4 2008

-637

26,753

27,390

Q3 2008

-6,697

23,425

30,122

Q2 2008

-9,407

22,667

32,074

Q1 2008

-9,479

22,005

31,484

Q4 2007

-14,653

21,500

36,153

Q3 2007

-14,793

20,154

34,947

Q2 2007

-13,886

19,762

33,648

Q1 2007

-13,298

19,246

32,543

(Source: Bank of Greece)

Banking sector assets

In 2009, the Bank of Greece reported total assets of EUR 85,783 million, increasing 22.34% from 2008.

Greece Bank Sector Assets

(Source: Bank of Greece)

[Top] Financial Indicators & Government Financial

Consumer price index (CPI)

The consumer price index recorded a 4.7% increase in 2010 from 2009. This increase is mainly due to the rise in fuel prices, higher taxes and fees on consumer goods, the rise in transportation costs and the increase in housing prices.

Greece Consumer Price Index
(Source: Hellenic statistical authority )

Producer Price Index (PPI)

The Producer Price Index increased by 6.5% in June 2010 from 2009. This hike was mainly due to the rise in energy prices.

The PPI for the domestic market and Non-domestic market grew by 6.1% and 8.1% respectively in June 2010 from June 2009.

(Source: Hellenic statistical authority)

Producer Price Index (PPI) in Industry – Overall Market

 

Main Industrial Groups

Weighting

Coefficients

Dec 2010

Dec  2009

Dec 2008

Change (%)
2010/2009

Change (%)
2009/2008

Overall Market

100,000

125.9

117.1

111.5

7.6

5.0

Intermediate Goods

30,305

127.8

122.2

119.4

4.6

2.4

Capital Goods

4,541

115.6

115.0

115.4

0.5

-0.3

Durable Consumer Goods

1,818

112.7

112.1

110.7

0.5

1.3

Non-Durable Consumer Goods

31,725

109.6

109.9

109.3

-0.2

0.5

Energy

31,611

142.7

119.9

105.8

19.0

13.3

(Source: Hellenic statistical authority)

Interest rate on savings deposits and current accounts

As of December 2010, the interest rate on household saving deposits was recorded as 0.45%. 

(Source: Bank of Greece)

Interest rate on time deposits

As of December 2010, the interest rates on household deposits up to 1 year was 3.68%, on household deposits over 1 year and up to 2 years was 3.19% and interest on household deposits up to 3 months amounted to 3.33%.

(Source: Bank of Greece)

Interest rates on loans from domestic credit institutions

Loans to individuals and individual non-profit institutions

Interest rate as on

December 2010

Loans without a defined maturity (overdrafts)

14.40

Credit cards

16.35

Open account loans

12.34

Debit balances on current accounts

10.83

Consumer loans

Floating rate or up to 1 year rate fixation

10.27

Over 1 and up to 5 years rate fixation

8.21

Over 5 years rate fixation

10.02

Housing loans

Floating rate or up to 1 year rate fixation

3.65

Over 1 and up to 5 years rate fixation

3.95

Over 5 and up to 10 years rate fixation

5.17

Loans for other purposes

Floating rate or up to 1 year rate fixation

7.09

(Source: Bank of Greece)

Money supply (currency in circulation)

The three measures of Monetary aggregates in Greece are- M1, M2 and M3.

M1 is the currency outside banks plus demand deposits.

M2 refers to time deposits, exchange bills, mortgage bonds, and real estate bonds. 

M3 refers to M1 plus M2 plus foreign currency time deposits, commercial paper, and shares of mutual funds or market funds held by residents.

Monetary aggregates, 2010 (EUR million)

End of period

Currency in Circulation

M1

M2

M3

M3 excluding currency in circulation

Jan

18,859

119,362

253,464

255,063

236,204

Feb

19,022

118,147

249,650

251,032

232,010

Mar

19,111

117,162

246,947

248,208

229,097

Apr

19,254

116,204

242,051

243,170

223,916

May

19,376

114,935

239,509

240,581

221,205

Jun

19,640

115,770

239,050

240,042

220,402

Jul

19,839

113,240

234,875

235,909

216,070

Aug

19,732

112,381

235,596

236,624

216,892

Sep

19,719

112,550

235,103

236,150

216,431

Oct

19,768

111,230

233,725

234,692

214,924

Nov

19,927

109,908

231,580

232,540

212,613

Dec

20,383

111,214

231,853

232,881

212,498

(Source: Bank of Greece)

Expenditure

In 2010, expenditures amounted to EUR 65.37 million, decreasing 9.0% from 2009. Specifically, the expenditure on the Public Investment Program amounted to EUR 8.436 million.

(Source: Ministry of finance)

Official exchange rate

Dollar rate per EUR for 2010 was registered at 1.33.

(Source: European Central Bank)

Greece Exchange Rate

Government finances

Sovereign debt dynamics

Current Surplus/Deficit

In 2010, government deficit amounted to EUR 19.603 million, decreasing 36.5%, compared to the deficit of EUR 30.871 million in 2009.

(Source: Ministry of finance)

Total revenues

In 2010, the net revenue amounted to EUR 51.14 million, increasing 5.5% from 2009. Specifically, revenues generated from the Public Investment Program amounted to EUR 3.06 million.

(Source: Ministry of finance)

Current account balance

The current account balance registered a deficit of EUR 24,047.3 million in 2010.

(Source: Bank of GreeceXL Sheet)

Balance of Payments

The current account deficit for January - November 2010 amounted to EUR 22,157 million, decreasing 2.58% and 29.98% as compared to the deficit in 2009 and 2008 respectively.

Balance of Payments (EUR million)

 

2010

2009

2008

Current Account balance

-24,047.3

-25,818.7

-34,797.6

Balance on Goods

-28,279.6

-30,767.3

-44,048.8

Balance on Services

13,230.1

12,640.2

17,135.6

Balance on Income

-9,228.3

-8,984.3

-10,643.0

Current Transfers

230.4

1,292.6

2,758.6

Capital Transfers

2,071.5

2,017.4

4,090.8

Financial account

21,985.4

24,395.4

29,914.2

Direct Investment

693.5

274.5

1,420.7

Portfolio Investment

-20,855.0

27,863.8

16,428.0

Other Investment

41,989.9

-3,636.9

12,094.6

Change in Reserve assets

157.0

-106.0

-29.0

Balancing Item

-9.6

-594.1

792.6

(Source: Bank of Greece)

[Top] Labour Force and Employment Overview

In Q3 2010, the Greek labor force was constituted as such:

  • 54.0% of the total population
  • The Inactive population amounted to 4,286,100
  • The number of employed 4,402,931
  • The number of unemployed was 621,938
  • The number of employed persons decreased by 3.0% as compared to the 3rd quarter of 2009
  • The number of unemployed persons increased by 33.7% as compared to the 3rd quarter of 2009

Population (‘000) of 15 years and over by employment status

 

 

 

Reference period

 

Labour Force

 

Economically active

 

Proportion  (%) as to the population

 

Employed

 

 

Proportion (%) as to the labour force

Unemployed

 

Proportion (%) as to the labour force

Q3 2010

5,024.9

54.0

4402.9

87.6

621.9

12.4

Q2 2010

5,021.0

54.0

4427.0

88.2

594.0

11.8

Q1 2010

5,012.4

53.9

4425.6

88.3

586.8

11.7

Q4 2009

4,991.2

53.8

4476.8

89.7

514.4

10.3

Q3 2009

5,005.3

54.0

4540.1

90.7

465.1

9.3

Q2 2009

4,974.5

53.7

4531.9

91.1

442.6

8.9

Q1 2009

4,948.1

53.5

4485.8

90.7

462.3

9.3

               

 

 

 

 

 

 

 

 

 

 

(Source: Hellenic statistical authority )

In the third quarter of 2010 employment increased from the previous year by 1.1% in primary sector, 10.9% In the secondary sector and 1.2% in tertiary sector.

(Source: Hellenic statistical authority)

Greece Employment by economic activity

Unemployment rate

In Q3 2010, the unemployment rate was 12.4%, compared to 9.3% in Q3 2009.

The unemployment rate in females is higher than in males. For example, in the 3rd quarter of 2010, the unemployment rate for females was 16.1% as compared to 9.7% for males.

Greece Unemployment Rate
(Source: Hellenic statistical authority)

In the third quarter of 2010, the unemployment rate was highest among those 15 to 29 years of age.

Greece Unemployment rate by age group

(Source: Hellenic statistical authority)

Minimum wages

The monthly gross statutory minimum wage rate in Greece is EUR 739.56, as of July 2010.

(Source: Federation of European Employers)

Level of unionisation

The Greek Confederation of Labour (GSEE) includes 62 union federations and 75 labour centres, ammounting to approximately 450,000 members.

(Source: fedee.com)

[Top] Political Stability

Government stability

Greece operates under a parliamentary republic system of government. Thus, the power in the country is shared at three different levels – legislative, executive, and the judiciary. The Legislative powers are exercised by the president and the parliament. The Executive powers are exercised by the government and the President. The judicial powers are free from legislative and executive powers and are executed by the courts of law.

The President is elected by the parliament for a five year term. The president regulates the function of institutions of the republic. His other responsibilities include, representing the country internationally, concluding peace treaties, creatubg alliances, promoting economic cooperation and participating in international organisations.

(Source: Constitution of Greece)

Parliament

The members of parliament in Greece are elected in general elections held every four years. It includes 300 members and each member is elected for a four year term. Parliament decides over legislative issues by an absolute majority, which consists of at least one-fourth of the total members present.

The core parliament activities are:

  • voting on bills and law proposals
  • constitutional revisions
  • electing the president of the Hellenic Republic
  • voting on the Standing Orders
  • voting on the state budget, the financial statement of the state and the general balance sheet of the state
  • voting on the Parliament’s budget and its financial statement
  • approving of the economic and social growth programs

(Source: hellenicparliament.gr)

Government

The government is comprised of the Prime Minister and ministers, who together, are known as the Cabinet.

The Prime Minister is the leader of the party that holds absolute majority in the parliament. A vote of confidence is carried out by the parliament within fifteen days of the appointment of the Prime Minister.  However, the parliament may decide to withdraw its vote of confidence and form a new government.

(Source: Constitution of Greece)

Major political parties active in the country include:

  • PASOK - Panhellenic Socialist Movement
  • ND - New Democracy
  • KKE - Communist Party of Greece
  • LA.O.S - Popular Orthodox Rally
  • SYRIZA - The Coalition of the Radical Left
  • OIK.PRAS. - Ecologist Greens

(Source: European election database)

Business and economic freedom

Greece scores 60.3 on Index of Economic Freedom, making it the 88th freest economy (2011).

Greece Economic Freedom Indices
(Source: Heritage.org)

Corruption perception

Greece ranks at 78th on the Corruption Perceptions Index (CPI) 2010. The CPI measures the perceived level of public-sector corruption in 180 countries and territories around the world.

(Source: transparency.org)

Freedom of information

The country’s press media is free from influence of political parties and government involvement.  However, broadcasting is unregulated by European standards, and about 1,700 private radio stations and TV stations are unlicensed.

The World Press Freedom Index 2010 ranks Philippines at 70th.

Eleftherotypia, Ta Nea, Kathimerini, Athens News are the key newspapers in the country. 

(Source: BBC News, rsf.org)

Judicial system

The courts of law are distinguished into the following categories:

  • Administrative courts
  • Civil courts
  • Criminal courts

The system also has three supreme courts: Supreme Court of administration, Supreme Civil and Criminal Court and Court of Auditors.

Additonally, the presidents and vice-presidents are chosen from among the serving members of each Supreme Court by the cabinet.

(Source: Constitution of Greece)

[Top] Demographic Overview

In 2010, the population of Greece was recorded as 11.31 million, and was estimated to increase to 11.35 million by the end of 2011. Additonally, the population is projected to further reach 11.49 million by the end of 2050.

(Source: Hellenic statistical authority)

Greece Population

(Source: Hellenic statistical authority – Pdf)

The total female population of the country for the year 2010 is 5.71 million, while the male population was 5.6 million accounting for about 49.50%of the total population.  This indicates, an almost equal gender divide.

Greece Population by Gender

(Source: Hellenic statistical authority )

In 2010, the population of people between 15 and 64 years accounted for the highest share of the overall population, followed by the age group of 65 years and above.

(Source: Hellenic statistical authority )

Greece Population by age group

(Source: Hellenic statistical authority )

Median age

The median age of the population increased from 36.1 years in 1990, to 41.6 years in 2010.

(Source: undp.org)

Birth rate

In 2009, the birth rate (per 1,000 live births) was registered at 10.45.

Greece Birth rate

(Source: Hellenic statistical authority)

Death rate

The death rate (per 1,000 inhabitants) was registered at 9.6 in 2009.

 

Greece Death rate

(Source: Hellenic statistical authorityXL Sheet)

Life expectancy

The life expectancy at birth for 2010 was estimated at 77.75 years for males, and 82.49 years for females. 

(Source:  Hellenic Statistical authority )

Religion

Religions in Greece include: Greek Orthodoxy, Muslim, Judaism, Catholicism, and Protestantism.

(Source: state.gov)

Net migration

The net migration was estimated to be 44,712 persons in 2011, increasing 0.19% from 2010.

Greece Net Migration

(Source: National Statistics)

Human development index (HDI)

The country is ranked 22nd on the Human Development Index (HDI) 2010 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and basic standard of living (measured by purchasing power parity, PPP, income).

(Source: UNDP)

[Top] Soft Infrastructure

Literacy rate

As of 2009, the literacy rates in Greece were as follows:

  • 15 years and above: 97%
  • Females 15-24: 99%
  • Males 15-24: 99%
  • Females 15 and older: 96%
  • Males 15 and older: 98%

(Source: World Bank)

Education

In Greece, education is compulsory for every citizen aged 6 to 15. There are four levels of education:

  • primary education
  • lower secondary education
  • post compulsory secondary education
  • higher education

Pre-School Education is provided by kindergartens and nursery schools, for children below the age of six.

Primary school education forms the first level of compulsory education, for children between 6 and 12 years of age.

The second level of compulsory education in Greece is lower secondary school, for students between 12 and 15 years of age. 

Post compulsory secondary education includes, general upper secondary education, and vocational training.  This is for students between 15 and 18 years of age.

Finally, higher education consists of two sectors: the university sector and the technological sector. The university sector includes universities, polytechnics, fine arts schools and Open Universities.  The technological sector includes technological education institutions (TEIs) and the School of Pedagogic and Technological Education.

(Source: Ministry of education)

Healthcare resources

Greece has a well developed healthcare system with access to a broad range of modern medical services.

Healthcare resources (2008)

Total number of hospitals and Clinics

316

Total number of beds

53,652

Total number of doctors

26,063

(Source: Hellenic statistical authority )

Hospitals by legal form of ownership (2008)

Number of Public Hospitals

140

Number of Private Hospitals

6

Number of private clinics

170

Total

316

(Source: Hellenic statistical authority )

[Top] Hard Infrastructure

Mass public transit

The various means of mass public transport in the country include trams, buses, metros, cabs and trains.

Roadways

The total length of road network in the country is 117,000 km.  This consists of  2,005 km of motorway and 4,230 km of national roads.

(Source: greek-motorway.net)

Railway

The total length of the railway network in Greece is 2,500 km.

(Source: greek-motorway.net)

Ports

There are about 128 ports operating in the country, of which 55 are tourist ports, anchorages, and shelters in operation. Alexandroupolis, Chalcis, Chios, Eleusina, Kavala, Laurium, Piraeus, Rhodes, and Thessaloniki are some of busiest ports in the country.

(Source: investingreece.gov.gr)

Airports

There are about 44 airports in the country, of which 15 are international airports.

 

Airports in Greece

Town

Airport name

Runway length (ft.)

Agrinion

Agrinion AB

9,600

Alexandroupolis

Dimokritos

8,500

Andravida

Andravida AB

10,100

Araxos

Araxos AB

9,800

Athens

Athens

11,400

Chania

Souda AB

10,800

Elefsis

Elefsis AB

8,900

Iraklion

Nikos Kazantzakis

8,900

Kalamata

Kalamata AB

8,700

Kasteli

Kasteli AB

8,000

Kavala

Megas Alexandros

9,800

Kefallinia

Kefallinia

8,000

Larisa

Larisa AB

11,900

Thessaloniki

Makedonia

8,000

Tripolis

Tripolis AB

6,300

Tympaki

Tympaki AB

9,000

Zakinthos

Dionysios Solomos

7,200

(Source: aircraft-charter-world.com)

Telecommunications network

Greece Fixed Telephone Subscribers

(Source: ITU)

During 2009, the number of fixed telephone line subscribers were 5,248,056 decreasing 0.11% from 2008.

Greece Mobile Subscribers

(Source: ITU)

During 2009, the number of mobile cellular subscribers amounted to 13,295,093 people, decreasing 3.65%, from the 2008 value of 13,799,340 people.

As of June 2010, the country had 4,970,700 internet users, compared to 3,800,000 users in 2006. Additonally, there was an internet penetration rate increase from 33.5% in 2006, to 46.2% in 2010.

(Source: internetworldstats.com)

Euromoney country risk banner
 
All material subject to strictly enforced copyright laws.
© 2017 Euromoney Institutional Investor PLC.