MadMUN - Magdeburg Model United Nations

Greece - Economy

Greece is member of the European Union and also member of the European Economic and Monetary Union (EMU). The biggest part of the foreign trade takes part in this coalition (52 % of the export, 66 % of the import). Germany is the most important consumer (10 %) of Greek products. Simultaneously, with 12 % Germany is one of the most important supplier for Greece. Textiles, petroleum products, tobacco, olive oil, fruits, cement and tomato products are the most important export goods. The most important import goods are: automobiles, food, machines and various other manufactured products.
Due to its geographical position Greece has a connective position between the European Union and the Balkan region. In this Balkan region, Greece is the economically strongest and dominating country. In this property, Greece played a decisive role in the establishment of the BSEC (Black Sea Economic Cooperation).
In contrast to many other EU-countries Greece could show a permanent economic growth in recent years (2002 4.0% ). However, the reason for this strong increase is on the one hand caused by high inflation rates (2002 3.7 %) and on the other hand by the Olympic Games 2004 in Athens. This sports event demands for enormous investments. The unemployment rates declined in recent years and amounts now to 10 %. The economy consists mainly of small and medium-sized companies. The industrial sector is only determined by technology to a less degree. The Greek economy consists of two main sectors, on the one side agriculture and on the other side the service sector. Due to this fact, you can explain the low productivity in comparison to other EU-member countries. But, the low wage level compensate these figures partly. The per-capita income amounts to 64 % of the EU-average. Tourism is commanding in the service sector. In the year 2000, more than 12.4 Million tourists have visited the Hellenic Republic.
Most of the Greek workers (17 %) are still employed in the agricultural sector, most of them in small enterprises. To compare it, the average size of a Greek farm is 4 hectares. Those of the EU amount to 16 hectares. Husbandry, especially of sheep and goats is still carried out intensively in Greece.