Greece

IV

Economy

Agriculture plays an important role in the Greek economy. New industries established in the period after World War I were, to a large extent, destroyed during World War II and the subsequent civil war. Development of the manufacturing sector of the economy since then has been hampered by the lack of fuel and difficulties in utilizing the hydroelectric potential of the country. By 1970, however, the contribution of manufacturing to the annual national output surpassed that of agriculture for the first time. Two major sources of income for Greece are shipping and tourism. The production of crude oil from fields in the northern Aegean Sea began to aid the economy in the early 1980s. Greece became a full member of the European Community (now the EU) in 1981. GNP in 2004 was US$184,973 million, equivalent to US$19,840 per capita (World Bank estimate). The estimated national budget in 2005 included approximately US$99,521 million in revenue and US$93,854 million in expenditure.

A

Agriculture, Forestry, and Fishing

Just over 21 per cent of the Greek workforce is engaged in farming, and agriculture constitutes about 14 per cent of the gross domestic product (GDP). Although the sector is efficient, productivity is not adequate for the heavy burden placed on the agricultural sector of the economy. Farms are small, and it is difficult to use mechanized equipment efficiently. In addition, yields are relatively low because of the dryness and erosion of the soil. Tobacco is a leading cash crop and accounts for about 3 per cent of annual export income. The approximate output of major crops (in tonnes) in 2005 was: tobacco, 123,000; wheat, 1.80 million; sugar beet, 2 million; potatoes, 840,000; and seed cotton, 1.10 million. Livestock in 2005 included some 9 million sheep, 5.40 million goats, 600,000 cattle, 28.2 million poultry, and 1,000,000 pigs. Products included almost 210,000 tonnes of cheese and 532,000 tonnes of meat (1994).

About 22 per cent of Greece was forested in the early 1990s. The Greek government owns about two thirds of the forest land and has taken steps to replace the trees that were destroyed during World War II. About 1.52 million cu m (53.8 million cu ft) of timber was cut in 2005.

Fishing is limited. In 2004 the annual catch amounted to about 190,288 tonnes, most of which was consumed within Greece. Sponges are the leading marine commodity produced for export.

B

Mining

Although mining is of relatively little importance to the Greek economy, a considerable variety of mineral deposits is exploited. The approximate output of minerals (in tonnes) in 1994 included lignite and brown coal, 56.7 million; bauxite, 2.2 million; magnesite, 575,472; and iron ore, 500,000 (metal content). Petroleum, salt, chromium, silver, zinc, marble, and lead were also produced.

C

Manufacturing

Just over 15 per cent of the workforce is engaged in manufacturing, which contributed almost 14 per cent of GDP in 1993. The leading manufactured items include basic metals and metal products; processed food, beverages, and tobacco; textiles; clothing; shoes; chemicals; cement; and wine. Athens is the manufacturing centre of Greece.

D

Tourism

In 2005 about 14.3 million tourists visited Greece; 30 years earlier fewer than 1 million tourists visited. Receipts from tourism (1996) amount to about US$3,300 million a year, up from US$120 million in 1968.