Industrialization of the Greek Economy
If we look at the industrialization of the Greek economy we can see that it is one of the least industrialized of the continental EU. The country has a manufacturing sector that is 8.5% of GDP. Its second largest sector is petroleum processing and the third largest is basic metals processing. In fact, two-thirds of its manufacturing sector is made up of these three subsectors.
Exports to Turkey
In 2018, Greece exported around 2 billion Euros worth of goods to Turkey. This represents a relatively small share of the country’s overall exports. In comparison, the total amount of Greek imports from Turkey was almost double that amount, at 1.8 billion Euros. The following charts illustrate the relationship between Greece’s exports and imports to Turkey.
Trade between Greece and Turkey is largely a result of the Customs Union, which provides a regulatory framework for trade. The two countries have not yet entered into a Free Trade Agreement, but both countries have a long and rich history of cooperation. The Customs Union, which was implemented after the Helsinki Summit in 1999, was an important step in boosting bilateral trade relations.
Despite the recent political turmoil, the Greek-Turkish relationship remains crucial. The weak Turkish lira and the deteriorating economic situation in Turkey have dampened tourism and economic ties between the two countries. However, Greece’s citizens can visit Turkey without a visa, which is an additional advantage.
The Greek economy is experiencing a difficult time. While the government has been trying to increase productivity and cut spending, the debt has ballooned and the country is facing a severe financial crisis. The Greek government must take action to reverse this trend. This means addressing the problems of debt and the inability to generate enough revenue to cover the country’s expenses.
There are three main options for dealing with Greece’s public debt. Each has different redistributive effects, risks, and external prerequisites. Once the crisis subsides, all economies will be forced to confront the debt issue. However, what options are available? Ultimately, it will be up to the country’s voters to decide which path they want to take.
Public debt in the Greek economy: New forms of European solidarity can help Greece deal with its financial challenges. The European Stability Mechanism (ESM), which was designed to aid countries when they lost access to markets, is one of the main vehicles for supporting Greece. This instrument has been an integral part of the EU’s support for the country during the financial crisis. In addition to this, the EU has added a new layer of assistance for Greece to combat the current crisis. The Next Generation EU package, which includes investments and digitalisation, provides an additional EUR540 billion for the country.
The Greek economy has a long history of economic booms and busts. Its GDP grew rapidly between the 1950s and the early 2000s, but then fell victim to the Great Recession, the Euro crisis, and its own debt crisis. During this period, the national debt of the country increased by a staggering amount. This debt has been fueled by unproductive government policies and excessive spending.