GREECE: Useful Info

Greece is a cultural giant. Its literature, art and philosophy—considered part of the world’s intellectual heritage—continue to influence modern ideas and trends. One reason for its large influence is its location in the far south of the Balkan peninsula, where it was a center of trade (and at one point in its history) towered over the region as one of the greatest civilizations in the world.

While it no longer considered a political and economic power, Greece has seen rapid growth since the end of World War II. Its economy is largely driven by tourism and shipping, as well as textiles and food. Its relations with Turkey—with which it had several territorial disputes—have also improved, leading to a greater regional stability.

Quick Facts

Population: 11 million (Source: UN, 2005)
Capital: Athens
Area: 131,957 sq km (50,949 sq miles)
Major language: Greek
Monetary unit: 1 Euro = 100 cents
Main exports: Textiles and clothing, food, oil products
GNI per capita: US $16,610 (World Bank, 2005)

Economic Background

The trade and investment potential with Greece had not been fully tapped by UK companies until recent years. Better market conditions, growing consumer interest and purchasing power, and incentives offered by the Greek government have led to an increase of UK exports to the country. Some British chains have successfully opened branches in Athens and Thessaloniki, penetrating a market once dominated by family-run businesses, and sending positive signals to small and medium sized businesses that the country could be a worthwhile location for expansion efforts.

Several opportunities can be found in the services sector, the largest and fastest growing segment of the Greek economy. Trade, banking, insurance, transportation and shipping, communications, healthcare, education, and tourism are particularly strong. The food industry is exceptionally robust compared to neighboring countries—its fresh and processed fruits and vegetables, olive oil, wheat, and tobacco are some of its strongest exports.

The northern port city of Thessaloniki is also an excellent entry point to the Balkan countries, while local firms have very strong commercial ties to Albania, Macedonia, Central and Eastern Europe, and the Black Sea region. Investors seeking to expand into these markets would do well to establish joint ventures in Greece.

The Government of Greece accounts for most major purchases. Low prices and close adherence to specifications are crucial. It also requires foreign bidders to partner with Greek firms for public sector procurement. Private sector purchasers put a high premium on after-sales support, largely due to a business environment that has been influenced by family-owned business were customer relationships were valued.

At present, Greece has 300,000 trading establishments, 7,700 limited companies and limited liability companies engaged in wholesale trade, and 3,200 limited companies and limited liability companies handling retail trade.

Around 80% of Greece imports are coursed through sales agents or distributors, the latter being more likely to guarantee exclusive sales rights for certain districts or even for the whole country. ,Athens, Piraeus, or Thessaloniki are usually considered the main entry points for trade, from which imports are sent to offices or agents located in other cities.

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