The Greek economy is in good shape and it is improving fast, being in a process of radical transformation. A new reform program aiming at making Greece more competitive and a more attractive place to invest is being implemented.
With its strategic geopolitical position as a valuable asset, Greece has to offer plenty of business opportunities in sectors such as energy, tourism, real estate, transport and services. The latter includes retailing. It offers a stable macroeconomic environment, a steadily growing economy and, most importantly, direct access to a rapidly emerging region: Southeast Europe. Up to now it seems that the effort for the transformation of Greece into a more dynamic, open and competitive economy, friendly to investment and entrepreneurship, is yielding results.
Greece has stimulated private investment by providing generous incentives through a new legal framework. Since the enactment of the new Investment Development Law in 2006, four thousand private investment projects worth 8.8 billion euros have been approved and are expected to create more than 21,000 new jobs.
The ‘Invest in Greece Agency’ (ELKE), whose mission is to draw large-scale foreign direct investment to the country, is bound to play an ever more active role in attracting such projects by providing information and guidance on procedures that will ensure smooth implementation throughout the investment process.
Another target of Greece’s reform program has been to strengthen the international orientation of the economy by developing a new integrated export policy. As a result, exports have risen significantly, up by 34.4 percent between 2004 and 2006.
Capitalizing on the experience gained, Greece is tackling whatever weaknesses still exist, formulating new priorities and opening new horizons for exporters. In 2007, Greece’s exports amounted to 9.6 percent of GDP while the export program for 2008 is the most ambitious ever, involving 175 schemes in 58 countries and Greek products from 25 different areas of activity.
Moreover, a new privatization agenda has been introduced and is already stimulating competition in the Greek market -- especially in the banking sector. It should be noted that following significant progress in 2004-2007, total revenue from privatizations reached 6.2 billion euros, 75 percent of which originated from foreign capital.
The Greek banking sector is seeing rapid expansion especially in the wider area of southeast Europe and the Eastern Mediterranean, and the major Greek banks have set ambitious plans for further development by the end of the decade. They are entering a new phase during which efforts will focus primarily on organic growth, increased profitability and higher shares in markets abroad.
By 2010, over half of the major Greek banking networks will be operating abroad, turning them into multinational players.
Shipping has traditionally been the most outward-looking sector of the economy and continues to be so. Following the growth of the country's merchant fleet over the past 60 years, Greek shipping had benefited enormously in the last five years from the significant growth in world trade, in conjunction with the appearance of strong emerging economies making a considerable contribution to the country's current account balance. Greece is one of the most popular tourist destinations worldwide. The wonderful scenery, its friendly and clean seas, the mild climate, the unique historical heritage, as well as traditional Greek hospitality, are what have made the country an especially attractive destination for visitors and tourists.
The tourist sector constitutes one of the main sources of the country's national wealth, contributing annually more than 18 percent to GNP, creating approximately 700,000 jobs and also playing a decisive role in the development of ancillary businesses. To grow the sector further, a series of measures has been taken to extend the tourist season all year, enabling the development of specialized areas of tourism such as spa-wellness-health care, nature-eco-rural tourism, conference-exhibitions, city breaks, sea-yachting, along with sports tourism, urban tourism and gastronomy.
As for the beauty of the landscape, looking at the picture in this supplement should intensify the saying: a picture is worth a thousand words.
For more information on Greek Economy please contact Embassy of Greece: Greek Economic & Commercial Office in Jeddah, KSA: Tel: 02 6690824, Fax: 02 6692644, e-mail:comoffgr@cyberia.net.sa
