Economy of Greece

Greece enjoys a high standard of living and very high Human Development Index, being ranked 32nd in the world in 2019.[13] However, the severe recession of recent years saw GDP per capita fall from 94% of the EU average in 2009 to 67% between 2017 and 2019.[69][70] During the same period, Actual Individual Consumption (AIC) per capita fell from 104% to 78% of the EU average.[69][70]

Greece's main industries are tourism, shipping, industrial products, food and tobacco processing, textiles, chemicals, metal products, mining and petroleum. Greece's GDP growth has also, as an average, since the early 1990s been higher than the EU average. However, the Greek economy continues to face significant problems, including high unemployment levels, an inefficient public sector bureaucracy, tax evasion, corruption and low global competitiveness.[71][72]

Greece is ranked 59th in the world, and 22nd among EU member states, on the Corruption Perceptions Index.[73] This represents a steady improvement over recent years; in 2012, it was ranked 94th in the world and a distant last in the EU.[74] However, Greece still has the EU's lowest Index of Economic Freedom and second lowest Global Competitiveness Index, ranking 100th and 59th in the world respectively.[75][76]

GDP growth rates of the Greek economy between 1961 and 2010

After fourteen consecutive years of economic growth, Greece went into recession in 2008.[77] By the end of 2009, the Greek economy faced the highest budget deficit and government debt-to-GDP ratio in the EU. After several upward revisions, the 2009 budget deficit is now estimated at 15.7% of GDP.[78] This, combined with rapidly rising debt levels (127.9% of GDP in 2009) led to a precipitous increase in borrowing costs, effectively shutting Greece out of the global financial markets and resulting in a severe economic crisis.[79]

Greece was accused of trying to cover up the extent of its massive budget deficit in the wake of the global financial crisis.[80] The allegation was prompted by the massive revision of the 2009 budget deficit forecast by the new PASOK government elected in October 2009, from "6–8%" (estimated by the previous New Democracy government) to 12.7% (later revised to 15.7%). However, the accuracy of the revised figures has also been questioned, and in February 2012 the Hellenic Parliament voted in favor of an official investigation following accusations by a former member of the Hellenic Statistical Authority that the deficit had been artificially inflated in order to justify harsher austerity measures.[81][82]

The Greek labor force, which amount around 5 million workers, average 2,032 hours of work per worker annually in 2011, is ranked fourth among OECD countries, after Mexico, South Korea and Chile.[83] The Groningen Growth & Development Centre has published a poll revealing that between 1995 and 2005, Greece was the country whose workers have the most hours/year work among European nations; Greeks worked an average of 1,900 hours per year, followed by Spaniards (average of 1,800 hours/year).[84]

As a result of the ongoing economic crisis, industrial production in the country went down by 8% between March 2010 and March 2011,[85] The volume of building activity saw a reduction of 73% in 2010.[86] Additionally, the turnover in retail sales saw a decline of 9% between February 2010 and February 2011.[87]

Between 2008 and 2013 unemployment skyrocketed, from a generational low of 7.2% in the second and third quarters of 2008 to a high of 27.9% in June 2013, leaving over a million jobless.[88][89][90] Youth unemployment peaked at 64.9% in May 2013.[91] Unemployment figures have steadily improved in recent years, with the overall rate falling to 14.4% and youth unemployment dropping to 32.4% in March 2020.[92]

Greece entered the Eurozone in 2001

Greece was accepted into the Economic and Monetary Union of the European Union by the European Council on 19 June 2000, based on a number of criteria (inflation rate, budget deficit, public debt, long-term interest rates, exchange rate) using 1999 as the reference year. After an audit commissioned by the incoming New Democracy government in 2004, Eurostat revealed that the statistics for the budget deficit had been under-reported.[93]

Most of the differences in the revised budget deficit numbers were due to a temporary change of accounting practices by the new government, i.e., recording expenses when military material was ordered rather than received.[94] However, it was the retroactive application of ESA95 methodology (applied since 2000) by Eurostat, that finally raised the reference year (1999) budget deficit to 3.38% of GDP, thus exceeding the 3% limit. This led to claims that Greece (similar claims have been made about other European countries like Italy)[95] had not actually met all five accession criteria, and the common perception that Greece entered the Eurozone through "falsified" deficit numbers.

In the 2005 OECD report for Greece,[96] it was clearly stated that "the impact of new accounting rules on the fiscal figures for the years 1997 to 1999 ranged from 0.7 to 1 percentage point of GDP; this retroactive change of methodology was responsible for the revised deficit exceeding 3% in 1999, the year of [Greece's] EMU membership qualification". The above led the Greek minister of finance to clarify that the 1999 budget deficit was below the prescribed 3% limit when calculated with the ESA79 methodology in force at the time of Greece's application, and thus the criteria had been met.[97]

The original accounting practice for military expenses was later restored in line with Eurostat recommendations, theoretically lowering even the ESA95-calculated 1999 Greek budget deficit to below 3% (an official Eurostat calculation is still pending for 1999).

An error sometimes made is the confusion of discussion regarding Greece's Eurozone entry with the controversy regarding usage of derivatives' deals with U.S. Banks by Greece and other Eurozone countries to artificially reduce their reported budget deficits. A currency swap arranged with Goldman Sachs allowed Greece to "hide" 2.8 billion Euros of debt, however, this affected deficit values after 2001 (when Greece had already been admitted into the Eurozone) and is not related to Greece's Eurozone entry.[98]

A study of the period 1999–2009 by forensic accountants has found that data submitted to Eurostat by Greece, among other countries, had a statistical distribution indicative of manipulation; "Greece with a mean value of 17.74, shows the largest deviation from Benford's law among the members of the eurozone, followed by Belgium with a value of 17.21 and Austria with a value of 15.25".[99][100]

Greece, like other European nations, had faced debt crises in the 19th century, as well as a similar crisis in 1932 during the Great Depression. In general, however, during the 20th century it enjoyed one of the highest GDP growth rates on the planet [101] (for a quarter century from the early 1950s to mid 1970s, second in the world after Japan). Average Greek government debt-to-GDP for the entire century before the crisis (1909-2008) was lower than that for the UK, Canada, or France,[102][103] while for the 30-year period (1952-1981) until entrance into the European Economic Community, the Greek government debt-to-GDP ratio averaged only 19.8%.[103]

Between 1981 and 1993 it steadily rose, surpassing the average of what is today the Eurozone in the mid-1980s (see chart right).

For the next 15 years, from 1993 to 2007 (i.e., before the Financial crisis of 2007–2008), Greece's government debt-to-GDP ratio remained roughly unchanged (the value was not affected by the 2004 Athens Olympics), averaging 102%[103][104] - a value lower than that for Italy (107%) and Belgium (110%) during the same 15-year period,[103] and comparable to that for the U.S. or the OECD average in 2017.[105]

During the latter period, the country's annual budget deficit usually exceeded 3% of GDP, but its effect on the debt-to-GDP ratio was counterbalanced by high GDP growth rates. The debt-to-GDP values for 2006 and 2007 (about 105%) were established after audits resulted in corrections according to Eurostat methodology, of up to 10 percentage points for the particular years (as well as similar corrections for the years 2008 and 2009). These corrections, although altering the debt level by a maximum of about 10%, resulted in a popular notion that "Greece was previously hiding its debt".

The Greek crisis was triggered by the turmoil of the Great Recession, which lead the budget deficits of several Western nations to reach or exceed 10% of GDP.[102] In Greece's case, the high budget deficit (which, after several corrections, was revealed that it had been allowed to reach 10.2% and 15.1% of GDP in 2008 and 2009, respectively) was coupled with a high public debt to GDP ratio (which, until then, was relatively stable for several years, at just above 100% of GDP - as calculated after all corrections[102]). Thus, the country appeared to lose control of its public debt to GDP ratio, which already reached 127% of GDP in 2009.[106] In addition, being a member of the Eurozone, the country had essentially no autonomous monetary policy flexibility. Finally, there was an effect of controversies about Greek statistics (due the aforementioned drastic budget deficit revisions which lead to an increase in the calculated value of the Greek public debt by about 10%, i.e., a public debt to GDP of about 100% until 2007), while there have been arguments about a possible effect of media reports. Consequently, Greece was "punished" by the markets which increased borrowing rates, making impossible for the country to finance its debt since early 2010.

Thus, the Greek economy faced its most-severe crisis since the restoration of democracy in 1974 as the Greek government revised its deficit forecasts from 3.7% in early 2009 and 6% in September 2009, to 12.7% of gross domestic product (GDP) in October 2009.[107][108]

The aforementioned budget deficit and debt revisions were connected with findings that, through the assistance of Goldman Sachs, JPMorgan Chase and numerous other banks, financial products were developed which enabled the governments of Greece, Italy and many other European countries to hide parts of their borrowing.[109][110] Dozens of similar agreements were concluded across Europe whereby banks supplied cash in advance in exchange for future payments by the governments involved; in turn, the liabilities of the involved countries were "kept off the books".[110][111][112][113][114][115]

According to Der Spiegel, credits given to European governments were disguised as "swaps" and consequently did not get registered as debt because Eurostat at the time ignored statistics involving financial derivatives. A German derivatives dealer had commented to Der Spiegel that "The Maastricht rules can be circumvented quite legally through swaps," and "In previous years, Italy used a similar trick to mask its true debt with the help of a different US bank."[115] These conditions had enabled Greek as well as many other European governments to spend beyond their means, while meeting the deficit targets of the European Union and the monetary union guidelines.[116][117][118][119][120][121][122][110][123] In May 2010, the Greek government deficit was again revised and estimated to be 13.6%[124] which was among the highest relative to GDP, with Iceland in first place at 15.7% and the United Kingdom third with 12.6%.[125] Public debt was forecast, according to some estimates, to hit 120% of GDP during 2010.[126]

As a consequence, there was a crisis in international confidence in Greece's ability to repay its sovereign debt, as reflected by the rise of the country's borrowing rates (although their slow rise – the 10-year government bond yield only exceeded 7% in April 2010 – coinciding with a large number of negative articles, has led to arguments about the role of international news media in the evolution of the crisis). In order to avert a default (as high borrowing rates effectively prohibited access to the markets), in May 2010 the other Eurozone countries, and the IMF, agreed to a "rescue package" which involved giving Greece an immediate €45 billion in bail-out loans, with more funds to follow, totaling €110 billion.[127][128] In order to secure the funding, Greece was required to adopt harsh austerity measures to bring its deficit under control.[129] Their implementation was to be monitored and evaluated by the European Commission, the European Central Bank and the IMF.[130][131]

The financial crisis – particularly the austerity package put forth by the EU and the IMF – has been met with anger by the Greek public, leading to riots and social unrest, while there have been theories about the effect of international media. Despite - others say because of - the long range of austerity measures, the government deficit has not been reduced accordingly, mainly, according to many economists, because of the subsequent recession.[132][133][134][135][136]

Public sector workers have come out on strike in order to resist job cuts and reductions to salaries as the government promises that a large scale privatisation programme will be accelerated.[137] Immigrants are sometimes treated as scapegoats for economic problems by far-right extremists.[138]

In 2013, Greece became the first developed market to be reclassified as an emerging market by financial services companies MSCI and S&P Dow Jones Indices.[139][140][141]

By July 2014 there were still anger and protests about the austerity measures, with a 24-hour strike among government workers timed to coincide with an audit by inspectors from the International Monetary Fund, the European Union and European Central Bank in advance of a decision on a second bailout of one billion euros ($1.36 billion), due in late July.[142]

Greece exited its six-year recession in the second quarter of 2014,[59][143] but the challenges of securing political stability and debt sustainability remain.[144]

A third bailout was agreed in July, 2015, after a confrontation with the newly elected leftist government of Alexis Tsipras. In June 2017, news reports indicated that the "crushing debt burden" had not been alleviated and that Greece was at the risk of defaulting on some payments.[145] The International Monetary Fund stated that the country should be able to borrow again "in due course". At the time, the Euro zone gave Greece another credit of $9.5-billion, $8.5 billion of loans and brief details of a possible debt relief with the assistance of the IMF.[146] On 13 July, the Greek government sent a letter of intent to the IMF with 21 commitments it promised to meet by June 2018. They included changes in labour laws, a plan to cap public sector work contracts, to transform temporary contracts into permanent agreements and to recalculate pension payments to reduce spending on social security.[147]

Greece's bailouts successfully ended (as declared) on 20 August 2018.[148]

There was a 25% drop in Greece's GDP, connected with the bailout programmes.[149][150] This had a critical effect: the Debt-to-GDP ratio, the key factor defining the severity of the crisis, would jump from its 2009 level of 127%[151] to about 170%, solely due to the GDP drop (i.e., for the same Debt). Such a level is considered unsustainable. In a 2013 report, the IMF admitted that it had underestimated the effects of so extensive tax hikes and budget cuts on the country's GDP and issued an informal apology[152] [153] .[154][150]

• 
  A vineyard in Naoussa, central Macedonia
• 
  Sacks with Fava Santorinis
• 
  Traditional collecting of mastic (plant resin) in Chios
• 
  Olive oil production

In 2010, Greece was the European Union's largest producer of cotton (183,800 tons) and pistachios (8,000 tons)[156] and ranked second in the production of rice (229,500 tons)[156] and olives (147,500 tons),[157] third in the production of figs (11,000 tons) and[157] almonds (44,000 tons),[157] tomatoes (1,400,000 tons)[157] and watermelons (578,400 tons)[157] and fourth in the production of tobacco (22,000 tons).[156] Agriculture contributes 3.8% of the country's GDP[1] and employs 12.4% of the country's labor force.[1]

Greece is a major beneficiary of the Common Agricultural Policy of the European Union. As a result of the country's entry to the European Community, much of its agricultural infrastructure has been upgraded and agricultural output increased. Between 2000 and 2007 organic farming in Greece increased by 885%, the highest change percentage in the EU.[158]

In 2007, Greece accounted for 19% of the EU's fishing haul in the Mediterranean Sea,[159] ranked third with 85,493 tons,[159] and ranked first in the number of fishing vessels in the Mediterranean between European Union members.[159] Additionally, the country ranked 11th in the EU in total quantity of fish caught, with 87,461 tons.[159]

Karelia Tobacco Company factory in Kalamata

Between 2005 and 2011, Greece has had the highest percentage increase in industrial output compared to 2005 levels out of all European Union members, with an increase of 6%.[160] Eurostat statistics show that the industrial sector was hit by the Greek financial crisis throughout 2009 and 2010,[161] with domestic output decreasing by 5.8% and industrial production in general by 13.4%.[161] Currently, Greece is ranked third in the European Union in the production of marble (over 920,000 tons), after Italy and Spain.

Between 1999 and 2008, the volume of retail trade in Greece increased by an average of 4.4% per year (a total increase of 44%),[161] while it decreased by 11.3% in 2009.[161] The only sector that did not see negative growth in 2009 was administration and services, with a marginal growth of 2.0%.[161]

In 2009, Greece's labor productivity was 98% that of the EU average,[161] but its productivity-per-hour-worked was 74% that the Eurozone average.[161] The largest industrial employer in the country (in 2007) was the manufacturing industry (407,000 people),[161] followed by the construction industry (305,000)[161] and mining (14,000).[161]

Greece has a significant shipbuilding and ship maintenance industry. The six shipyards around the port of Piraeus are among the largest in Europe.[162] In recent years, Greece has become a leader in the construction and maintenance of luxury yachts.[163]

• 
  HSY-55-class gunboat Polemistis, built by Hellenic Shipyards Co. for the Hellenic Navy
• 
  The fuselage for the Dassault nEUROn stealth jet is produced in Greece by the Hellenic Aerospace Industry

• 
  Aluminium of Greece facilities
• 
  Gold mine in Thasos
• 
  Gerakini mine
• 
  Skouries mine
• 
  Marble quarry in Sifnos
• 
  Calcium carbonate loaded at the port of Argostoli

The Port of Thessaloniki

Neorion shipyard, located in Ermoupolis

23.2% of the world's total merchant fleet is owned by Greek companies, making it the largest in the world. They are ranked in the top 5 for all kinds of ships, including first for tankers and bulk carriers.

Shipping has traditionally been a key sector in the Greek economy since ancient times.[166] In 1813, the Greek merchant navy was made up of 615 ships.[167] Its total tonnage was 153,580 tons and was manned with 37,526 crewmembers and 5,878 cannons.[167] In 1914 the figures stood at 449,430 tons and 1,322 ships (of which 287 were steam boats).[168]

During the 1960s, the size of the Greek fleet nearly doubled, primarily through the investment undertaken by the shipping magnates Onassis, Vardinoyannis, Livanos and Niarchos.[169] The basis of the modern Greek maritime industry was formed after World War II when Greek shipping businessmen were able to amass surplus ships sold to them by the United States Government through the Ship Sales Act of the 1940s.[169]

Greece has the largest merchant navy in the world, accounting for more than 15% of the world's total deadweight tonnage (dwt) according to the United Nations Conference on Trade and Development.[41] The Greek merchant navy's total dwt of nearly 245 million is comparable only to Japan's, which is ranked second with almost 224 million.[41] Additionally, Greece represents 39.52% of all of the European Union's dwt.[170] However, today's fleet roster is smaller than an all-time high of 5,000 ships in the late 1970s.[166]

Greece is ranked fourth in the world by number of ships (3,695), behind China (5,313), Japan (3,991), and Germany (3,833).[41] A European Community Shipowners' Associations report for 2011–2012 reveals that the Greek flag is the seventh-most-used internationally for shipping, while it ranks second in the EU.[170]

In terms of ship categories, Greek companies have 22.6% of the world's tankers[170] and 16.1% of the world's bulk carriers (in dwt).[170] An additional equivalent of 27.45% of the world's tanker dwt is on order,[170] with another 12.7% of bulk carriers also on order.[170] Shipping accounts for an estimated 6% of Greek GDP,[171] employs about 160,000 people (4% of the workforce),[172] and represents 1/3 of the country's trade deficit.[172] Earnings from shipping amounted to €14.1 billion in 2011,[170] while between 2000 and 2010 Greek shipping contributed a total of €140 billion[171] (half of the country's public debt in 2009 and 3.5 times the receipts from the European Union in the period 2000–2013).[171] The 2011 ECSA report showed that there are approximately 750 Greek shipping companies in operation.[171]

The latest available data from the Union of Greek Shipowners show that "the Greek-owned ocean-going fleet consists of 3,428 ships, totaling 245 million deadweight tonnes in capacity. This equals 15.6 percent of the carrying capacity of the entire global fleet, including 23.6 percent of the world tanker fleet and 17.2 percent of dry bulk".[173]

Counting shipping as quasi-exports and in terms of monetary value, Greece ranked 4th globally in 2011 having exported shipping services worth 17,704.132 million $; only Denmark, Germany and South Korea ranked higher during that year.[20] Similarly counting shipping services provided to Greece by other countries as quasi-imports and the difference between exports and imports as a trade balance, Greece in 2011 ranked in the latter second behind Germany, having imported shipping services worth 7,076.605 million US$ and having run a trade surplus of 10,712.342 million US$.[174][175]

OTE headquarters in Athens

Between 1949 and the 1980s, telephone communications in Greece were a state monopoly by the Hellenic Telecommunications Organization, better known by its acronym, OTE. Despite the liberalization of telephone communications in the country in the 1980s, OTE still dominates the Greek market in its field and has emerged as one of the largest telecommunications companies in Southeast Europe.[177] Since 2011, the company's major shareholder is Deutsche Telekom with a 40% stake, while the Greek state continues to own 10% of the company's shares.[177] OTE owns several subsidiaries across the Balkans, including Cosmote, Greece's top mobile telecommunications provider, Cosmote Romania and Albanian Mobile Communications.[177]

Other mobile telecommunications companies active in Greece are Wind Hellas and Vodafone Greece. The total number of active cellular phone accounts in the country in 2009 based on statistics from the country's mobile phone providers was over 20 million,[178] a penetration of 180%.[178] Additionally, there are 5.745 million active landlines in the country.[1]

Greece has tended to lag behind its European Union partners in terms of Internet use, with the gap closing rapidly in recent years. The percentage of households with Internet access more than doubled between 2006 and 2013, from 23% to 56% respectively (compared with an EU average of 49% and 79%).[179][180] At the same time, there was a massive increase in the proportion of households with a broadband connection, from 4% in 2006 to 55% in 2013 (compared with an EU average of 30% and 76%).[179][180] By 2019, the percentage of Greek households with Internet access and a broadband connection had reached 78.5% and 78.1% respectively.[181]

Porto Carras resort, Chalkidiki

The island of Santorini, popular tourist destination.

Tourism in the modern sense has only started to flourish in Greece in the years post-1950,[182][183] although tourism in ancient times is also documented in relation to religious or sports festivals such as the Olympic Games.[183] Since the 1950s, the tourism sector saw an unprecedented boost as arrivals went from 33,000 in 1950 to 11.4 million in 1994.[182]

Greece attracts more than 16 million tourists each year, thus contributing 18.2% to the nation's GDP in 2008 according to an OECD report.[184] The same survey showed that the average tourist expenditure while in Greece was $1,073, ranking Greece 10th in the world.[184] The number of jobs directly or indirectly related to the tourism sector were 840,000 in 2008 and represented 19% of the country's total labor force.[184] In 2009, Greece welcomed over 19.3 million tourists,[185] a major increase from the 17.7 million tourists the country welcomed in 2008.[186]

Among the member states of the European Union, Greece was the most popular destination for residents of Cyprus and Sweden in 2011.[187]

The ministry responsible for tourism is the Ministry of Culture and Tourism, while Greece also owns the Greek National Tourism Organization which aims in promoting tourism in Greece.[184]

In recent years a number of well-known tourism-related organizations have placed Greek destinations in the top of their lists. In 2009 Lonely Planet ranked Thessaloniki, the country's second-largest city, the world's fifth best "Ultimate Party Town", alongside cities such as Montreal and Dubai,[188] while in 2011 the island of Santorini was voted as the best island in the world by Travel + Leisure.[189] The neighbouring island of Mykonos was ranked as the 5th best island Europe.[189] Thessaloniki was the European Youth Capital in 2014.

Since the fall of communism, Greece has invested heavily in neighbouring Balkan countries. Between 1997 and 2009, 12.11% of foreign direct investment capital in North Macedonia was Greek, ranking fourth. In 2009 alone, Greeks invested €380 million in the country,[190] with companies such as Hellenic Petroleum having made important strategic investments.[190]

Greece invested €1.38 billion in Bulgaria between 2005 and 2007[191] and many important companies (including Bulgarian Postbank, United Bulgarian Bank Coca-Cola Bulgaria) are owned by Greek financial groups.[191] In Serbia, 250 Greek companies are active with a total investment of over €2 billion.[192] Romanian statistics from 2016 show that Greek investment in the country exceeded €4 billion, ranking Greece fifth or sixth among foreign investors.[193] Greece has been the largest investor in Albania since the fall of communism with 25% of foreign investments in 2016 coming from Greece, in addition business relations between both are extremely strong and continuously rising.[194]

Since the start of the debt crisis, Greece's negative balance of trade has decreased significantly—from €44.3 billion in 2008 to €17.9 billion in 2020.[23][195] In 2020, exports decreased by 9.3% and imports fell by 12.9%.[23]

Imports and exports in 2008; values in millions[195]

Rank	Imports		Rank	Exports
	Origin	Value		Destination	Value
1	Germany	€7,238.2	1	Germany	€2,001.9
2	Italy	€6,918.5	2	Italy	€1,821.3
3	Russia	€4,454.0	3	France	€1,237.0
4	China	€3,347.1	4	Netherlands	€1,103.0
5	France	€3,098.0	5	Russia	€885.4
–	European Union	€33,330.5	–	European Union	€11,102.0
–	Total	€60,669.9	–	Total	€17,334.1

Imports and exports in 2011; values in millions[196]

Rank	Imports		Rank	Exports
	–	European Union		€22,688.5	–	European Union	€11,377.7
–	Total	€42,045.4	–	Total	€22,451.1

Greece is also the largest import partner of Cyprus (18.0%)[197] and the largest export partner of Palau (82.4%).[198]

Imports and exports in 2012[24]

	Imports				Exports
Rank	Origin	Value (€ mil)	Value (% of total)	Rank	Destination	Value (€ mil)	Value (% of total)
0	a	0		-1	0	a	0	-1
1	Russia	5,967.20132	12.6	1	Turkey	2,940.25203	10.8
2	Germany	4,381.92656	9.2	2	Italy	2,033.77413	7.5
3	Italy	3,668.88622	7.7	3	Germany	1,687.03947	6.2
4	Saudi Arabia	2,674.00587	5.6	4	Bulgaria	1,493.75355	5.5
5	China	2,278.03883	4.8	5	Cyprus	1,319.28598	4.8
6	Netherlands	2,198.57126	4.6	6	United States	1,024.73686	3.8
7	France	1,978.48460	4.2	7	United Kingdom	822.74077	3
#α	OECD	23,849.94650	50.2	#α	OECD	13,276.48107	48.8
#β	G7	11,933.75417	25.1	#β	G7	6,380.86705	23.4
#γ	BRICS	8,682.10265	18.3	#ε	BRICS	1,014.17146	3.7
#δ	BRIC	8,636.02946	18.2	#ζ	BRIC	977.76016	3.6
#ε	OPEC	8,090.76972	17	#γ	OPEC	2,158.60420	7.9
#ζ	NAFTA	751.80608	1.6	#δ	NAFTA	1,215.70257	4.5
#a	European Union 27	21,164.89314	44.5	#a	European Union 27	11,512.31990	42.3
#b	European Union 15	17,794.19344	37.4	#b	European Union 15	7,234.83595	26.6
#3	Africa	2,787.39502	5.9	#3	Africa	1,999.46534	7.3
#4	America	1,451.15136	3.1	#4	America	1,384.04068	5.1
#2	Asia	14,378.02705	30.2	#2	Asia	6,933.51200	25.5
#1	Europe	28,708.38148	60.4	#1	Europe	14,797.20641	54.4
#5	Oceania	71.70603	0.2	#5	Oceania	169.24085	0.6
#	World	47,537.63847	100	#	World	27,211.06362	100
24	z	1000000000000000000	101	24	z	1000000000000000000	101
the International Organisations or Country Groups list and ranking presented above (i.e. #greek_letters and/or #latin_letters), is not indicative of the whole picture of Greece's trade; this is instead only an incomplete selection of some major and well known such Organisations and Groups; rounding errors possibly present

Greece suffers from very high levels of tax evasion. In the last quarter of 2005, tax evasion reached 49%,[226] while in January 2006 it fell to 41.6%.[226] It is worth noting that the newspaper Ethnos which published these figures went bankrupt; it is no longer published and some sources suggest that the information it had published was highly debatable.[227] A study by researchers from the University of Chicago concluded that tax evasion in 2009 by self-employed professionals alone in Greece (accountants, dentists, lawyers, doctors, personal tutors and independent financial advisers) was €28 billion or 31% of the budget deficit that year.[228]

Greece's "shadow economy" was estimated at 24.3% of GDP in 2012, compared with 28.6% for Estonia, 26.5% for Latvia, 21.6% for Italy, 17.1% for Belgium, 14.7% for Sweden, 13.7% for Finland, and 13.5% for Germany, and is certainly related to the fact that the percentage of Greeks that are self-employed is more than double the EU average (2013 est.).[102]

The Tax Justice Network estimated in 2011 that there were over 20 billion euros in Swiss bank accounts held by Greeks.[229] The former Finance Minister of Greece, Evangelos Venizelos, was quoted as saying, "Around 15,000 individuals and companies owe the taxman 37 billion euros".[230] Additionally, the TJN put the number of Greek-owned off-shore companies at over 10,000.[231]

In 2012, Swiss estimates suggested that Greeks had some 20 billion euros in Switzerland of which only one percent had been declared as taxable in Greece.[232] Estimates in 2015 were even more dramatic. They indicated that the amount due to the government of Greece from Greeks' accounts in Swiss banks totaled around 80 billion euros.[233][234]

A mid-2017 report indicated Greeks have been "taxed to the hilt" and many believed that the risk of penalties for tax evasion were less serious than the risk of bankruptcy. One method of evasion is the so-called black market, grey economy or shadow economy: work is done for cash payment which is not declared as income; as well, VAT is not collected and remitted.[235] A January 2017 report[236] by the DiaNEOsis think-tank indicated that unpaid taxes in Greece at the time totaled approximately 95 billion euros, up from 76 billion euros in 2015, much of it was expected to be uncollectable. Another early 2017 study estimated that the loss to the government as a result of tax evasion was between 6% and 9% of the country's GDP, or roughly between 11 billion and 16 billion euros per annum.[237]

The shortfall in the collection of VAT (sales tax) is also significant. In 2014, the government collected 28% less than was owed to it; this shortfall was about double the average for the EU. The uncollected amount that year was about 4.9 billion euros.[238] The DiaNEOsis study estimated that 3.5% of GDP is lost due to VAT fraud, while losses due to smuggling of alcohol, tobacco and petrol amounted to approximately another 0.5% of the country's GDP.[237]

Following similar actions by the United Kingdom and Germany, the Greek government was in talks with Switzerland in 2011, attempting to force Swiss banks to reveal information on the back accounts of Greek citizens.[239] The Ministry of Finance stated that Greeks with Swiss bank accounts would either be required to pay a tax or reveal information such as the identity of the bank account holder to the Greek internal revenue services.[239] The Greek and Swiss governments were to reach a deal on the matter by the end of 2011.[239]

The solution demanded by Greece still had not been effected as of 2015. That year, estimates indicated that the amount of evaded taxes stored in Swiss banks was around 80 billion euros. By then, however, a tax treaty to address this issue was under serious negotiation between the Greek and Swiss governments.[233][234] An agreement was finally ratified by Switzerland on 1 March 2016 creating a new tax transparency law that would allow for a more effective battle against tax evasion. Starting in 2018, banks in both Greece and Switzerland will exchange information about the bank accounts of citizens of the other country to minimize the possibility of hiding untaxed income.[240]

In 2016 and 2017, the government was encouraging the use of credit cards or debit cards to pay for goods and services in order to reduce cash only payments. By January 2017, taxpayers were only granted tax-allowances or deductions when payments were made electronically, with a "paper trail" of the transactions that the government could easily audit. This was expected to reduce the problem of businesses taking payments but not issuing an invoice;[241] that tactic had been used by various companies to avoid payment of VAT (sales) tax as well as income tax.[242][243]

By 28 July 2017, numerous businesses were required by law to install a point of sale device to enable them to accept payment by credit or debit card. Failure to comply with the electronic payment facility can lead to fines of up to 1,500 euros. The requirement applied to around 400,000 firms or individuals in 85 professions. The greater use of cards was one of the factors that had already achieved significant increases in VAT collection in 2016.[244]

GDP per capita of the regions of Greece in 2008.

The country's two largest metropolitan areas account for almost 62% of the national economy.

Greece's most economically important regions are Attica, which contributed €87.378 billion to the economy in 2018, and Central Macedonia, which contributed €25.558 billion.[245] The smallest regional economies were those of the North Aegean (€2.549 billion) and Ionian Islands (€3.257 billion).[245]

In terms of GDP per capita, Attica (€23,300) far outranks any other Greek region.[245] The poorest regions in 2018 were the North Aegean (€11,800), Eastern Macedonia and Thrace (€11,900) and Epirus (€12,200).[245] At the national level, GDP per capita in 2018 was €17,200.[245]

Greece is a welfare state which provides a number of social services such as quasi-universal health care and pensions. In the 2012 budget, expenses for the welfare state (excluding education) stand at an estimated €22.487 billion[225] (€6.577 billion for pensions[225] and €15.910 billion for social security and health care expenses),[225] or 31.9% of the all state expenses.[225]

In 2011, 53.3 percent of employed persons worked more than 40 to 49 hours a week and 24.8 percent worked more than 50 hours a week, totaling up to 78.1 percent of employed persons working 40 or more hours a week.[247] When accounting for varying age groups, the percentage of employees working 40 to 49 hours a week peaked in the 25 to 29 age range.[247]  As workers got older, they gradually decreased in percentage working 40 to 49 hours, but increased in working 50+ hours, suggesting a correlation that as employees grow older, they work more hours. Of different occupation groups, skilled agricultural, forestry, and fishery workers and managers were the most likely to work 50+ hours; however, they do not take up a significant portion of the labor force, only 14.3 percent.[248]  In 2014, the average number of working hours for Greek employees was 2124 hours, ranking as the third highest among OECD countries and the highest in the Eurozone.[249]

Recent trends in employment indicate that the number of working hours will decrease in the future due to the rise of part-time work. Since 2011, average working hours have decreased.[249] In 1998, Greece passed legislation introducing part-time employment in public services with the goal of reducing unemployment, increasing the total, but decreasing the average number of hours worked per employee.[250] Whether the legislation was successful in increasing public-sector part-time work, labor market trends show that part-time employment has increased from 7.7 percent in 2007 to 11 percent in 2016 of total employment.[251] Both men and women have had the part-time share of employment increase over this period. While women still constitute a majority of part-time workers, recently men have been taking a larger share of part-time employment.[252]