Greece is a unitary state, which is located in the southern part of Europe. According to recent estimates, the country's population is just over 11 million people. The Greek Republic covers an area of 132 thousand square meters. km Today the state is experiencing enormous economic problems, as a result of which endless strikes, riots, speculation and provocations take place on the streets of large cities.
Country description
The capital of Greece is Athens. The main legislative body is the Parliament. Since spring 2015, the President of the Republic is Prokopis Pavlopoulos. Greece became independent in 1821, having separated from the Ottoman caliphate.
The unitary state is located on the Balkan Peninsula. The jurisdiction of the country includes numerous territorial islands. Greece itself is divided into 13 administrative regions. It is washed by the Thracian, Ikarian, Aegean, Cretan, Ionian and Mediterranean Seas. A common land border with countries such as Albania, Bulgaria, Turkey and Macedonia. The population professes 98% Orthodoxy.
Despite the rich cultural and historical heritage, the current position of Greece in world politics and economics is becoming increasingly shaky every day. The republic is dominated by agricultural and industrial sectors. A significant part in the profitability of the state is tourism.
The origin of the economy
Ancient Hellas is called the ancient village, which appeared at the beginning of the first millennium BC. e. on the coast and islands of the Mediterranean Sea. In those days, the most developed civilizations were just Rome and Greece. The economy was based on a slave system. Private property was the foundation of economic activity.
Civil society and statehood were formed gradually with the development of democratic institutions. Initially, Hellas was an aristocratic republic. The economy of ancient Greece depended entirely on the economic activities of policies that resulted from community decay. Each such city united the property of all aristocrats. Members of the pole had political and civil rights. They laid the foundation for monetary and commodity relations.
The primary sector of the economy was agriculture, for example, the cultivation of grapes and olives. Cattle breeding followed (sheep, goats, etc.). Artisans and farmers engaged in trade. Even in those ancient times, the lands of Hellas were rich in such useful resources as copper, silver, gold, lead and marble.
The development of the modern economy
The heyday of financial indicators dates back to 1996. So GNP amounted to about $ 120 billion. $ 11.5 thousand is obtained per person per year. Then, according to the dynamic indicators of profitability growth, Greece was among the leaders of European countries. The economy of the republic at that time was based on successful agriculture and industry. The share of these industries amounted to more than 55%. The remaining percentage was divided between services and taxes from tourism organizations. Unemployment did not exceed 11%.
The beginning of the 21st century was marked for the country by serious financial changes. Foreign investors dragged sharply into Greece. On the one hand, this stabilized the economy and closed the gaps on some important issues. On the other hand, the national system had to adapt to Western integration. As a result, Greece began to systematically yield to its partners in the European Union. Only multi-billion loans from American, Italian, French, Swiss and German banks helped maintain capital.
Nevertheless, the main characteristic of the Greek economy by sector has remained virtually unchanged. GDP from agriculture is 8.3%, from the industrial zone - up to 27.3%, from services - over 64.4%. At the same time, the needs of citizens in liquid fuel are blocked only by imports.
General indicators of the economy
One of the most agrarian-developed powers in Europe has long been considered Greece. The economy of the country surpasses even some of the primary EU members in this equivalent. The only negative that inhibits the industrial development of Greece is the average level of production.
The public sector provides just under half of GDP. This is achieved thanks to well-developed trade and the banking system. Both insurance companies and travel companies bring their share of income. As for industry, recently the most profitable are the textile, petrochemical, food and metallurgical industries. In turn, the railway communication is poorly developed, which can not be said about air and sea.
In general, the Greek economy is briefly characterized by two components: the stagnation of the banking system and the slow growth of GDP. It is worth noting that about 20% of the money turnover is occupied by shadow tranches.
Industry and Agriculture
The sectoral structure of the country is developed unevenly and disproportionately throughout the territory. But in the light industry, one of the main powers is again Greece. The country's economy is replenished from this growth by almost 19%. Moreover, more than 21% of the population is involved in light industry.
The mining of nickel ores, bauxites, emery, magnesites, and pyrites is actively conducted. Steel production, mechanical engineering, and woodworking are widely developed. The textile industry is considered a priority. Important for the economy is shipping.
Agriculture is based on private farming associations. Due to them, the Greek economy is replenished annually by 7%, and this is about 16 billion dollars. The agricultural spectrum includes livestock, agriculture and fishing. Today, 41% of the country's land is occupied by pastures, another 39% - forests and arable land.
Travel Profitability
About 20 million visitors visit Greece annually. Tourists bring to the state treasury more than 15% of GDP.
The most frequently visited places are beaches. Lovers of sunbathing and swimming come every summer to Athens, Chora, Heraklion, Thessaloniki and other large resort cities. Such islands as Rhodes, Crete, Santorini, Peloponnese, Mykonos attract tourists with their beauty and unimaginable atmosphere of harmony. It will not be amiss to say about the numerous cruise tours in the Mediterranean Sea.
Nevertheless, in the last couple of years, a significant departure of tourists. Only in the first half of 2015 there were 22% fewer than predicted. Thus, the Greek economy was missing about 6.8 billion dollars.
Many tourists note that lately it has been more profitable to go on vacation to the Crimea, Bulgaria or Turkey. There the prices are more loyal and the quality of services is better.
Debt crisis
Every year, investment loans in Greece are growing inexorably. Today, the external debt of the state is more than 450 billion euros. This amount exceeds the annual GDP by almost 2 times. It turns out that in such a once successful country as Greece, the economy hangs in the balance.
According to experts, the total debt by 2018 could reach 600 billion euros. This is an unprecedented event that puzzled not only the Greek banking system, but also European associations. Naturally, there are no dividends in the country even for the minimum repayment of debt.
The Greek government in a hurry began to offer large investors loyal privatization programs. However, this will only delay the inevitable. The default in the country has already begun.
Causes of the financial crisis
The Greek economy is currently at a stagnation stage. In January 2015, a new Government was formed in the country. The task of the ministers was to find alternative ways to stabilize the economy without the help of the European Central Bank.
In March 2015, Greece refused to pay the debt, seeking in the strict form of its partial cancellation. In June, the International Monetary Fund terminated all transactions with Athens. No progress was made with the Central Bank of Europe. Moreover, in early July, the Government supported the results of the referendum on the refusal of EU assistance. Thus, the Greek economy today is a deep default, a way out of which will not be found soon.
