Economic overview Greece, in 36 editions.

Greece has a mixed capitalistic economy with the basic entrepreneurial system overlaid in 1981-89 by a socialist-left-government socialist government that enlarged the public sector and became the nation's largest employer. Like many other Western economies, Greece suffered severely from the global oil price hikes 55% of the 1970s, annual GDP growth plunging from 8% to 2% in 1981 to about 70% when Prime Minister Mitsotakis took office. Mitsotakis inherited several severe economic problems from the 1980s, and inflation, unemployment, preceding socialist and budget deficits rising sharply. The fall of caretaker governments, which neglected the socialist government in 1989 runaway budget deficit, a ballooning current account deficit, and accelerating inflation. With only a two-seat majority in the inability Chamber of Deputies, Mitsotakis has concentrated on cutting the conservative opposition to muster a clear majority have led to business uncertainty and public-sector payroll, cautiously expanding the continued prospects tax base, and adopting guidelines for lackluster economic performance. privatizing Greece's loss-ridden state-owned enterprises. Once the political situation is sorted out, Greece will have to face the challenges posed by the steadily increasing integration of the European Community, including the progressive lowering of tariff trade and investment barriers. Tourism continues as a major industry, providing a vital offset to the sizable commodity trade deficit.

Greece has a mixed capitalistic economy with the basic entrepreneurial
system overlaid in 1981-89 by a socialist government that enlarged the
public sector from 55% of GDP in 1981 to about 70% when Prime Minister
Mitsotakis took office. Tourism continues as a major industry, and
agriculture - although handicapped by geographic limitations and fragmented,
small farms - is self-sufficient except for meat, dairy products, and animal
feedstuffs. The Mitsotakis government inherited several severe economic
problems from the preceding socialist and caretaker governments, administrations, which
had neglected the runaway budget deficit, a ballooning current account
deficit, and accelerating inflation. With only In early 1991, the government secured a two-seat majority in
$2.5 billion assistance package from the Chamber of Deputies, Mitsotakis has concentrated on cutting EC under the public-sector payroll, cautiously expanding strictest terms yet
imposed on a member country, as the tax base, and adopting guidelines for privatizing EC finally ran out of patience with
Greece's loss-ridden state-owned enterprises. Once the political situation is sorted out, Greece will have failure to face the challenges posed by the steadily increasing integration of put its financial affairs in order. Over the European Community, including next three
years, Athens must bring inflation down to 7%, cut the progressive lowering of trade current account
deficit and investment barriers. Tourism continues central government borrowing as a major industry, providing a vital offset to percentage of GDP, slash
public-sector employment by 10%, curb public-sector pay raises, and broaden
the sizable commodity trade deficit. tax base.

Greece has a mixed capitalistic capitalist economy with the basic entrepreneurial
system
overlaid in 1981-89 by a socialist government system that enlarged the
public sector
from 55% of GDP in 1981 to about 70% when Prime Minister
Mitsotakis MITSOTAKIS took
office. Tourism continues as a major industry, source of foreign exchange, and
agriculture - although handicapped by geographic limitations and fragmented,
small farms - is self-sufficient except for meat, dairy products, and animal
feedstuffs. Since 1986, real GDP growth has averaged only 1.6% a year,
compared with the Europen Community average of 3%. The Mitsotakis MITSOTAKIS government inherited several severe economic
problems from the preceding socialist has made little progress during its two and caretaker administrations, which one-half years in power in
had neglected coming to grips with Greece's main economic problems: an inflation rate
still four times the runaway budget EC average, a large public sector deficit, and a ballooning
fragile current account
deficit, and accelerating inflation. position. In early 1991, the government secured a
three-year, $2.5 billion assistance package from the EC under the strictest
terms yet
imposed on a member country, as the EC finally ran out of patience with
with Greece's failure to put its financial affairs in order. Over On the next three advice
years, Athens must bring inflation down of the EC Commission, Greece delayed applying for the second installment
until 1993 because of the failure of the government to 7%, cut meet the current account 1992
deficit targets. Although MITSOTAKIS faced down the unions in mid-1992 in a dispute
over privatization plans, social security reform, and central government borrowing as tax and price
increases, and his new economics czar, Stephanos MANOS, is a percentage of GDP, slash respected
public-sector employment economist committed to renovating the ailing economy. However, a national
elections due by 10%, curb public-sector pay raises, and broaden May 1994 will probably prompt MITSOTAKIS to backtrack on
economic reform. In 1993, the tax base. GDP growth rate likely will remain low; the
inflation rate probably will continue to fall, while remaining the highest
in the EC.

Greece has a mixed capitalist economy with the basic entrepreneurial system
system overlaid in 1981-89 by a socialist system that enlarged the
public sector
from 55% of GDP in 1981 to about 70% when Prime Minister MITSOTAKIS took in 1989. Since
office. then, the public sector has been reduced to about 60% of GDP. Tourism
continues as a major source of foreign exchange, and
agriculture is
self-sufficient except for meat, dairy products, and animal
feedstuffs. Since 1986, Over the last decade, real GDP growth has averaged only 1.6% a year,
year, compared with the Europen Community European Union average of 3%. The MITSOTAKIS government
has made little progress during its two and one-half years in power in
coming to grips with Greece's main economic problems: an inflation rate 2.2%. Inflation is
still four times the EC EU average, a large public sector deficit, and a
fragile current account position. In early 1991, the government secured a national debt has reached 140% of
three-year, $2.5 billion assistance package from GDP, the EC under highest in the strictest EU. Prime Minister PAPANDREOU will probably
terms yet imposed on a member country, as only make limited progress correcting the EC finally ran out economy's problems of patience high
with Greece's failure to put its financial affairs in order. On the advice inflation, large budget deficit, and decaying infrastructure. His
of the EC Commission, Greece delayed applying for the second installment economic program suggests that although he will shun his expansionary
until 1993 because of the failure policies of the government 1980s, he will avoid tough measures needed to meet the 1992 slow
targets. Although MITSOTAKIS faced down inflation or reduce the unions in mid-1992 state's role in a dispute the economy. He has limited
over the previous government's privatization plans, social security reform, and tax for example, and price has
increases, called for generous welfare spending and his new economics czar, Stephanos MANOS, is a respected
economist committed to renovating the ailing economy. However, a national
elections due by May 1994 will probably prompt MITSOTAKIS to backtrack on
economic reform. real wage increases. In 1993, 1994,
the GDP growth rate is likely will to remain low; the
low, and inflation rate probably
will continue to fall, while accelerate, remaining the highest
in the EC. EU. PAPANDREOU'S failure
to improve the country's economic performance will further strain
relations with the EU. Since Greece's accession to the then EC in
1981, Athens' heavy reliance on EU aid - amounting to about 6% of
Greek GDP annually - and its poor use of Union funds have riled
Brussels. Its ailing economy will continue to be a drag on European
economic and monetary union.

Greece has a mixed capitalist economy with the basic entrepreneurial
entrepreneurial system overlaid in 1981-89 by a socialist system that
enlarged the
public sector from 55% of GDP in 1981 to about 70% in
1989. Since
then, the public sector has been reduced to about 60% of
GDP. Tourism
continues as a major source of foreign exchange, and
agriculture is
self-sufficient except for meat, dairy products, and animal
animal feedstuffs. Over the last decade, real GDP growth has averaged
1.6% a
year, compared with the European Union average of 2.2%. Inflation is
four times Inflation continues to be well above the EU average, and the national
debt has reached 140% of
GDP, the highest in the EU. Prime Minister
PAPANDREOU will probably
only make only limited progress correcting the
economy's problems of high
inflation, large budget deficit, and
decaying infrastructure. His
economic program suggests that although
he will shun his expansionary
policies of the 1980s, he will avoid
tough measures needed to slow
inflation or reduce the state's role in
the economy. He has limited
the previous government's privatization
plans, for example, and has
called for generous welfare spending and
real wage increases. In 1994,
the GDP growth rate is likely Athens continues to remain low, and inflation probably
will accelerate, remaining the highest in the EU. PAPANDREOU'S failure rely heavily on EU aid, which
recently has amounted to improve the country's economic performance about 6% of GDP. Greece almost certainly will further strain
relations with the EU. Since Greece's accession to not meet the then EC in EU's Maastricht Treaty convergence targets of public
1981, Athens' heavy reliance on EU aid - amounting deficit held to about 6% 3% of
Greek GDP annually - and its poor use national debt to 60% of Union funds have riled GDP by 1999. Per
Brussels. Its ailing economy will continue to be a drag on European capita GDP has fallen below Portugal's level, the lowest among EU
economic and monetary union. members.

Greece has a mixed capitalist economy. The basic entrepreneurial system underwent extensive socialist change in 1981-89, which enlarged economy with the
public sector from 55% accounting for roughly half of GDP in 1981 to about 70% in 1989. GDP. Tourism is a major
source of foreign exchange, and agriculture is self-sufficient, except
for meat, dairy products, and animal feedstuffs. Despite a moderate recovery in industrial output over the last year, the Greek economy remains weak, with real Macroeconomic
problems include mediocre GDP growth of 1.7%; growth, the country's huge public sector and burgeoning sector,
substantial budget deficit are contributing to a public debt of 120% of GDP. deficits, and 10% unemployment. The government's
hard drachma policy and public sector wage restraint are largely
responsible for the downward trend in inflation, which is now at the lowest
level in 20 22 years. Investment is likely to be the primary engine for
economic growth in 1996. 1997. Athens continues to rely heavily on EU aid,
which currently amounts to about 4% of GDP. New Despite widespread
protests from unions and farmers, Prime Minister SIMITIS's reputation as the architect of Athens' mid-1980s austerity program suggests that he will pursue prudent economic policies that will SIMITIS presented a
tough 1997 budget to help bring Greece closer to meeting the EU
criteria for participating in economic and monetary union. SIMITIS
faces strong opposition to further privatization and further
austerity. Plans to increase defense spending could undermine
SIMITIS's goal to curb government expenditures.

Greece has a mixed capitalist economy with the
public sector accounting for about half of GDP, although the
GDP. The government plans to privatize some leading state enterprises.
Tourism is a key industry, providing a large portion of GDP and
foreign exchange earnings. Greece is a major beneficiary of EU aid,
equal to about 4% of GDP. The economy has improved steadily over the
last few years, as the government has tightened policy with the goal
of qualifying Greece to join the EU's single currency (the euro) in
2001. In particular, Greece has cut its budget deficit to just over
below 2% of GDP and tightened monetary policy, with the result that
inflation fell below 4% by the end of 1998--the 1998 - the lowest rate in 26
years. The outlook for 1999 is good with the budget deficit years - and
inflation both expected to decline further, while GDP growth stays
near 3% averaged only 2.6% in 1999. Further restructuring of the economy and the current account deficit remains below 2% reduction of GDP. unemployment remain major challenges.

Greece has a mixed capitalist economy with the public sector accounting for about half of GDP. The government plans to privatize some leading state enterprises. Tourism is a key industry, providing a large portion of GDP and foreign exchange earnings. Greece is a major beneficiary of EU aid, equal to about 4% of GDP. The economy has improved steadily over the last few years, as the government has tightened policy with in the goal of qualifying Greece run-up to join Greece's entry into the EU's single currency (the euro) in Economic and Monetary Union (EMU) on 1 January 2001. In particular, Greece has cut its budget deficit to below 2% 1% of GDP and tightened monetary policy, with the result that inflation fell below 4% by from 20% in 1990 to 3.1% in 2000. Major challenges remaining include the end reduction of 1998 - the lowest rate in 26 years - unemployment and averaged only 2.6% in 1999. Further further restructuring of the economy and economy, including the reduction privatization of unemployment remain major challenges. some leading state enterprises. Growth, 3.8% in 2000, may fall off to 3%-3.5% in 2001.

Greece has a mixed capitalist economy with the public sector accounting for about half of GDP. Tourism is a key industry, providing a large portion of GDP and foreign exchange earnings. with per capita GDP 70% of the Big Four European economies. Tourism provides 15% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in menial jobs. Greece is a major beneficiary of EU aid, equal to about 4% 3.3% of GDP. The economy has improved steadily over the last few years, as the government has tightened policy in the run-up to Greece's entry into the EU's Economic and Monetary Union (EMU) on 1 January 2001. In particular, Greece has cut its budget deficit to below 1% of GDP and tightened monetary policy, with the result that inflation fell from 20% in 1990 to 3.1% in 2000. Major challenges remaining include the reduction of unemployment and further restructuring of the economy, including the privatization of some leading privatizing several state enterprises. Growth, 3.8% in 2000, may fall off to 3%-3.5% enterprises, undertaking social security reforms, overhauling the tax system, and minimizing bureaucratic inefficiencies. Economic growth is forecast at roughly 4% in 2001. 2003.

Greece has a mixed capitalist economy with the public sector accounting for about half of GDP and with per capita GDP 70% of the Big Four European leading euro-zone economies. Tourism provides 15% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in menial jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of GDP. The economy has improved steadily over the last few years, as the government tightened policy in the run-up to Greece's entry into the EU's Economic and Monetary Union (EMU) on with economic growth averaging 4% since 1997, exceeding EU growth by more than 1 January 2001. Major percentage point. Remaining challenges remaining include the reduction of unemployment the public debt, inflation, and unemployment; and further restructuring of the economy, including privatizing several state enterprises, undertaking social security pension and other reforms, overhauling the tax system, and minimizing bureaucratic inefficiencies. Economic growth is forecast at roughly 4% The Olympic Games will be held in 2003. Athens in mid-2004.

Greece has a mixed capitalist economy with the public sector accounting for half about 40% of GDP and with per capita GDP 70% of the leading euro-zone economies. Tourism provides 15% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in menial jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP. The Greek economy has improved steadily with economic growth averaging 4% since 1997, exceeding EU growth grew by more than 1 percentage point. Remaining challenges include about 4.0% for the reduction past two years, largely because of an investment boom and infrastructure upgrades for the 2004 Athens Olympic Games. Despite strong growth, Greece has failed to meet the EU's Growth and Stability Pact budget deficit criteria of 3% of GDP since 2000; public debt, inflation, and unemployment; and further unemployment are also above the eurozone average. Further restructuring of the economy, including economy include privatizing several state enterprises, undertaking pension and other reforms, and minimizing bureaucratic inefficiencies. The Olympic Games will be held in Athens in mid-2004.

Greece has a mixed capitalist economy with the public sector accounting for about 40% of GDP and with per capita GDP 70% of the leading euro-zone economies. Tourism provides 15% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in menial jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP. The Greek economy grew by about 4.0% for the past two years, largely because of an investment boom and infrastructure upgrades for the 2004 Athens Olympic Games. Despite strong growth, Greece has failed to meet the EU's Growth and Stability Pact budget deficit criteria of 3% of GDP since 2000; public debt, inflation, and unemployment are also above the eurozone average. Further restructuring of the economy will need to include privatizing of several state enterprises, undertaking pension and other reforms, and minimizing bureaucratic inefficiencies.

Greece has a capitalist economy with the public sector accounting for about 40% of GDP and with per capita GDP 70% at least 75% of the leading euro-zone economies. Tourism provides 15% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in menial jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP. The Greek economy grew by about 4.0% for the past two years, between 2003 and 2005, largely because of an investment boom and infrastructure upgrades for the 2004 Athens Olympic Games. Despite strong growth, Economic growth slowed to about 3% in 2005. Greece has failed to meet not met the EU's Growth and Stability Pact budget deficit criteria of 3% of GDP since 2000; public 2000. Public debt, inflation, and unemployment are also above the eurozone euro-zone average. Further restructuring of To overcome these challenges, the economy will need Greek Government is expected to include privatizing continue cutting government spending, reducing the size of several state enterprises, undertaking pension the public sector, and other reforms, reforming the labor and minimizing bureaucratic inefficiencies. pension systems.

Greece has a capitalist economy with the public sector accounting for about 40% of GDP and with per capita GDP at least 75% of the leading euro-zone economies. Tourism provides 15% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in menial agricultural and unskilled jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP. The Greek economy grew by about nearly 4.0% for the per year between 2003 and 2005, largely because of an investment boom and infrastructure upgrades for 2006, due partly to infrastructural spending related to the 2004 Athens Olympic Games. Economic growth slowed to about 3% Games, and in 2005. Greece part to an increased availability of credit, which has not met sustained record levels of consumer spending. Greece violated the EU's Growth and Stability Pact budget deficit criteria of no more than 3% of GDP since 2000. from 2001 to 2005, but finally appears on track to meet that criteria in 2006. Public debt, inflation, and unemployment are above the euro-zone average. To overcome these challenges, the average, but are falling. The Greek Government is expected continues to continue grapple with cutting government spending, reducing the size of the public sector, and reforming the labor and pension systems. systems, in the face of often vocal opposition from the country's powerful labor unions and the general public.

Greece has a capitalist economy with the public sector accounting for about 40% of GDP and with per capita GDP at least 75% of the leading euro-zone economies. Tourism provides 15% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP. The Greek economy grew by nearly 4.0% per year between 2003 and 2006, 2007, due partly to infrastructural spending related to the 2004 Athens Olympic Games, and in part to an increased availability of credit, which has sustained record levels of consumer spending. Greece violated the EU's Growth and Stability Pact budget deficit criteria of no more than 3% of GDP from 2001 to 2005, 2006, but finally appears on track to meet met that criteria in 2006. 2007. Public debt, inflation, and unemployment are above the euro-zone average, but are falling. The Greek Government continues to grapple with cutting government spending, reducing the size of the public sector, and reforming the labor and pension systems, in the face of often vocal opposition from the country's powerful labor unions and the general public. The economy remains an important domestic political issue in Greece and, while the ruling New Democracy government has had some success in improving economic growth and reducing the budget deficit, Athens faces long-term challenges in its effort to continue its economic reforms, especially social security reform and privatization.

Greece has a capitalist economy with the public sector accounting for about 40% of GDP and with per capita GDP at least 75% about two-thirds that of the leading euro-zone economies. Tourism provides 15% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP. The Greek economy grew by nearly 4.0% per year between 2003 and 2007, due partly to infrastructural spending related to the 2004 Athens Olympic Games, and in part to an increased availability of credit, which has sustained record levels of consumer spending. But growth dropped to 2.9% in 2008, as a result of the world financial crisis and tightening credit conditions. Greece violated the EU's Growth and Stability Pact budget deficit criteria of no more than 3% of GDP from 2001 to 2006, but finally met that criteria in 2007. 2007-08. Public debt, inflation, and unemployment are above the euro-zone average, but are falling. The Greek Government continues to grapple with cutting government spending, reducing the size of the public sector, and reforming the labor and pension systems, in the face of often vocal opposition from the country's powerful labor unions and the general public. The economy remains an important domestic political issue in Greece and, while the ruling New Democracy government has had some success in improving economic growth and reducing the budget deficit, Athens faces long-term challenges in its effort to continue its economic reforms, especially social security reform and privatization.

Greece has a capitalist economy with the public sector accounting for about 40% of GDP and with per capita GDP about two-thirds that of the leading euro-zone economies. Tourism provides 15% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP. The Greek economy grew by nearly 4.0% per year between 2003 and 2007, due partly to infrastructural spending related to the 2004 Athens Olympic Games, and in part to an increased availability of credit, which has sustained record levels of consumer spending. But the economy went into recession in 2009 as a result of the world financial crisis, tightening credit conditions, and Athens' failure to address a growing budget deficit, which was triggered by falling state revenues, and increased government expenditures. The economy contracted by 2% in 2009, and 4.8% in 2010. Greece violated the EU's Growth and Stability Pact budget deficit criterion of no more than 3% of GDP from 2001 to 2006, but finally met that criterion in 2007-08, before exceeding it again in 2009, with the deficit reaching 15.4% of GDP. Austerity measures reduced the deficit to 9.4% 10.5% of GDP in 2010. Public debt, inflation, and unemployment are above the euro-zone average while per capita income is below; unemployment rose to 12% in 2010. Eroding public finances, a credibility gap stemming from inaccurate and misreported statistics, and consistent underperformance on following through with reforms prompted major credit rating agencies in late 2009 to downgrade Greece's international debt rating, and has led the country into a financial crisis. Under intense pressure by the EU and international market participants, the government has adopted a medium-term austerity program that includes cutting government spending, reducing the size of the public sector, decreasing tax evasion, reforming the health care and pension systems, and improving competitiveness through structural reforms to the labor and product markets. Athens, however, faces long-term challenges to push through unpopular reforms in the face of often vocal opposition from the country's powerful labor unions and the general public. Greek labor unions are striking over new austerity measures, but the strikes so far have had a limited impact on the government's will to adopt reforms. An uptick in widespread unrest, however, could challenge the government's ability to implement reforms and meet budget targets, and could also lead to rioting or violence. In April 2010 a leading credit agency assigned Greek debt its lowest possible credit rating; in May, the International Monetary Fund and Eurozone governments provided Greece emergency short- and medium-term loans worth $147 billion so that the country could make debt repayments to creditors. In exchange for the largest bailout ever assembled, the government announced combined spending cuts and tax increases totaling $40 billion over three years, on top of the tough austerity measures already taken. Greece, however, struggled to boost revenues and cut spending to meet 2010 targets set by the EU and the IMF, especially after Eurostat - the EU's statistical office - revised upward Greece's deficit and debt numbers for 2009 and 2010. Greece's lenders are calling on Athens to step up efforts in 2011 to increase tax collection, shore up public enterprises, and rein in health spending, and are planning to give Greece more time to repay its EU-IMF loan. Greece responded by introducing major structural reforms, but investors still question whether Greece can sustain fiscal efforts in the face of a bleak economic outlook and public discontent.

Greece has a capitalist economy with the a public sector accounting for about 40% of GDP and with per capita GDP about two-thirds that of the leading euro-zone economies. Tourism provides 15% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP. The Greek economy grew by nearly 4.0% 4% per year between 2003 and 2007, due partly to infrastructural spending related to the 2004 Athens Olympic Games, and in part to an increased availability of credit, which has sustained record levels of consumer spending. But the economy went into recession in 2009 as a result of the world financial crisis, tightening credit conditions, and Athens' failure to address a growing budget deficit, which was triggered by falling state revenues, and increased government expenditures. deficit. The economy contracted by 2% 2.3% in 2009, 3.5% in 2010, 6.9% in 2011, and 4.8% 6.0% in 2010. 2012. Greece violated the EU's Growth and Stability Pact budget deficit criterion of no more than 3% of GDP from 2001 to 2006, but finally met that criterion in 2007-08, before exceeding it again in 2009, with the deficit reaching 15.4% 15% of GDP. Austerity measures reduced the deficit to 10.5% of GDP in 2010. Public debt, inflation, and unemployment are above the euro-zone average while per capita income is below; unemployment rose to 12% about 8% in 2010. Eroding 2012. Deteriorating public finances, a credibility gap stemming from inaccurate and misreported statistics, and consistent underperformance on following through with reforms prompted major credit rating agencies in late 2009 to downgrade Greece's international debt rating, rating in late 2009, and has led the country into a financial crisis. Under intense pressure by from the EU and international market participants, the government has adopted a medium-term austerity program that includes cutting government spending, reducing the size of the public sector, decreasing tax evasion, reforming overhauling the health care health-care and pension systems, and improving competitiveness through structural reforms to reforming the labor and product markets. Athens, however, faces long-term challenges to push through unpopular reforms in the face of often vocal opposition widespread unrest from the country's powerful labor unions and the general public. Greek labor unions are striking over new austerity measures, but the strikes so far have had a limited impact on the government's will to adopt reforms. An uptick in widespread unrest, however, could challenge the government's ability to implement reforms and meet budget targets, and could also lead to rioting or violence. In April 2010 a leading credit agency assigned Greek debt its lowest possible credit rating; in May, May 2010, the International Monetary Fund and Eurozone Euro-Zone governments provided Greece emergency short- and medium-term loans worth $147 billion so that the country could make debt repayments to creditors. In exchange for the largest bailout ever assembled, the government announced combined spending cuts and tax increases totaling $40 billion over three years, on top of the tough austerity measures already taken. Greece, however, struggled to boost revenues and cut spending to meet 2010 targets set by the EU and the IMF, especially after Eurostat - the EU's statistical office - revised upward Greece's deficit and debt numbers for 2009 and 2010. European leaders and the IMF agreed in October 2011 to provide Athens a second bailout package of $169 billion. The second deal however, calls for Greece's creditors to write down a significant portion of their Greek government bond holdings. In exchange for the second loan Greece has promised to introduce an additional $7.8 billion in austerity measures during 2013-15. However, these massive austerity cuts are lengthening Greece's economic recession and depressing tax revenues. Greece's lenders are calling on Athens to step up efforts in 2011 to increase tax collection, shore up privatize public enterprises, and rein in health spending, and are planning to give Greece more time to repay shore up its EU-IMF loan. Greece responded by introducing major structural reforms, but economy and finances. Many investors still question whether doubt that Greece can sustain fiscal efforts in the face of a bleak economic outlook and outlook, public discontent. discontent, and political instability.

Greece has a capitalist economy with a public sector accounting for about 40% of GDP and with per capita GDP about two-thirds that of the leading euro-zone economies. Tourism provides 15% 18% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP. The Greek economy grew by nearly averaged growth of about 4% per year between 2003 and 2007, due partly to infrastructural spending related to the 2004 Athens Olympic Games, and in part to an increased availability of credit, which has sustained record levels of consumer spending. But but the economy went into recession in 2009 as a result of the world financial crisis, tightening credit conditions, and Athens' failure to address a growing budget deficit. The By 2013 the economy had contracted by 2.3% in 2009, 3.5% in 2010, 6.9% in 2011, and 6.0% in 2012. 26%, compared with the pre-crisis level of 2007. Greece violated met the EU's Growth and Stability Pact budget deficit criterion of no more than 3% of GDP from 2001 to 2006, but finally met that criterion in 2007-08, before exceeding but violated it again in 2009, with the deficit reaching 15% of GDP. Austerity measures have reduced the deficit to about 8% 4% in 2012. 2013, including government debt payments. Deteriorating public finances, inaccurate and misreported statistics, and consistent underperformance on reforms prompted major credit rating agencies to downgrade Greece's international debt rating in late 2009, and has led the country into a financial crisis. Under intense pressure from the EU and international market participants, the government adopted a medium-term austerity program that includes cutting government spending, decreasing tax evasion, overhauling the health-care and pension systems, and reforming the labor and product markets. Athens, however, faces long-term challenges to push continue pushing through unpopular reforms in the face of widespread unrest from the country's powerful labor unions and the general public. In April 2010 a leading credit agency assigned Greek debt its lowest possible credit rating; in May 2010, the International Monetary Fund and Euro-Zone governments provided Greece emergency short- and medium-term loans worth $147 billion so that the country could make debt repayments to creditors. In exchange for the largest bailout ever assembled, the government announced combined spending cuts and tax increases totaling $40 billion over three years, on top of the tough austerity measures already taken. Greece, however, struggled to meet 2010 targets set by the EU and the IMF, especially after Eurostat - the EU's statistical office - revised upward Greece's deficit and debt numbers for 2009 and 2010. European leaders and the IMF agreed in October 2011 to provide Athens a second bailout package of $169 billion. The second deal however, calls called for Greece's creditors holders of Greek government bonds to write down a significant portion of their Greek government bond holdings. As Greek banks held a significant portion of sovereign debt, the banking system was adversely affected by the write down and €41 billion of the second bailout package was set aside to ensure the banking system was adequately capitalized. In exchange for the second loan Greece has promised to introduce an additional $7.8 billion in austerity measures during 2013-15. However, these the massive austerity cuts are lengthening have prolonged Greece's economic recession and depressing depressed tax revenues. Throughout 2013, Greece's lenders are calling called on Athens to step up efforts to increase tax collection, dismiss public servants, privatize public enterprises, and rein in health spending, and are planning spending. In June 2013 Prime Minister Antonis SAMARAS's efforts to give Greece more time meet bailout conditions led to shore up its economy the departure of one party, the Democratic Left, from the governing coalition when his government made the controversial decision to shut down and finances. Many investors doubt that Greece can sustain fiscal efforts restructure the state-owned television and radio company. Subsequent reluctance to institute further cuts and delays in meeting public sector reform targets prompted Greek lenders to withhold bailout fund disbursements until December 2013. However, investor confidence began to show signs of strengthening by the face end of a bleak economic outlook, public discontent, and political instability. 2013 as leading macroeconomic indicators suggested the economy’s freefall had been arrested.

Greece has a capitalist economy with a public sector accounting for about 40% of GDP and with per capita GDP about two-thirds that of the leading euro-zone economies. Tourism provides 18% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP. The Greek economy averaged growth of about 4% per year between 2003 and 2007, but the economy went into recession in 2009 as a result of the world financial crisis, tightening credit conditions, and Athens' failure to address a growing budget deficit. By 2013 the economy had contracted 26%, compared with the pre-crisis level of 2007. Greece met the EU's Growth and Stability Pact budget deficit criterion of no more than 3% of GDP in 2007-08, but violated it in 2009, with the deficit reaching 15% of GDP. Austerity measures have reduced the deficit to about 4% in 2013, including government debt payments. payments, but the deficit spiked to 12.7% of GDP in 2014. Deteriorating public finances, inaccurate and misreported statistics, and consistent underperformance on reforms prompted major credit rating agencies to downgrade Greece's international debt rating in late 2009, and led the country into a financial crisis. Under intense pressure from the EU and international market participants, the government adopted a medium-term austerity program that includes cutting government spending, decreasing tax evasion, overhauling the health-care and pension systems, and reforming the labor and product markets. Athens, however, faces faced long-term challenges to continue pushing through unpopular reforms in the face of widespread unrest from the country's powerful labor unions and the general public.
In April 2010 2010, a leading credit agency assigned Greek debt its lowest possible credit rating; rating, and in May 2010, the International Monetary Fund and Euro-Zone governments provided Greece emergency short- and medium-term loans worth $147 billion so that the country could make debt repayments to creditors. In exchange for the largest bailout ever assembled, the government announced combined spending cuts and tax increases totaling $40 billion over three years, on top of the tough austerity measures already taken. Greece, however, struggled to meet 2010 targets set by the EU and the IMF, especially after Eurostat - the EU's statistical office - revised upward Greece's deficit and debt numbers for 2009 and 2010. European leaders and the IMF agreed in October 2011 to provide Athens a second bailout package of $169 billion. The second deal however, called for holders of Greek government bonds to write down a significant portion of their holdings. As Greek banks held a significant portion of sovereign debt, the banking system was adversely affected by the write down and €41 $60 billion of the second bailout package was set aside to ensure the banking system was adequately capitalized. In exchange for the second loan loan, Greece promised to introduce an additional $7.8 billion in austerity measures during 2013-15. However, the massive austerity cuts have prolonged Greece's economic recession and depressed tax revenues. Throughout 2013, Greece's lenders have continually called on Athens to step up efforts to increase tax collection, dismiss public servants, privatize public enterprises, and rein in health spending. In June 2013 Prime Minister Antonis SAMARAS's efforts to meet bailout conditions led
Investor confidence began to show signs of strengthening by the departure end of one party, 2013, and the Democratic Left, from decline in GDP slowed to 3.9% that year, Greece’s best performance since 2009. Greece subsequently marked three significant milestones in 2014: balancing its 2013 budget - not including debt repayments; re-entering financial markets in April with the governing coalition when his first issue of government made the controversial decision to shut down debt since 2010; and restructure posting its first quarter of positive growth since 2008. Buoyed by Greece’s success, Prime Minister Antonios SAMARAS in October announced plans to exit its bailout program early, provoking a plunge in the state-owned television Greek stock and radio company. Subsequent reluctance debt markets that pushed Greece back to institute further cuts the negotiating table with its creditors and delays ultimately resulted in meeting public sector reform targets prompted Greek lenders an agreement to withhold extend the EU portion of Greece’s bailout fund disbursements until December 2013. However, investor confidence began to show signs through February 2015. The Greek economy posted an annual economic growth rate of strengthening by 0.8 percent in 2014, the end first year of 2013 as leading macroeconomic indicators suggested positive growth since 2008. However, widespread discontent with austerity measures resulted in a victory for the economy’s freefall had been arrested. anti-austerity SYRIZA in the January 2015 parliamentary elections. In February, Greece reached a tentative agreement with its creditors that would provide emergency liquidity to Greece in exchange for significant economic reforms. Uncertainty regarding Greece’s future in the Eurozone has dampened investor confidence and lowered growth projections for 2015.

Greece has a capitalist economy with a public sector accounting for about 40% of GDP and with per capita GDP about two-thirds that of the leading euro-zone economies. Tourism provides 18% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP.
The Greek economy averaged growth of about 4% per year between 2003 and 2007, but the economy went into recession in 2009 as a result of the world financial crisis, tightening credit conditions, and Athens' failure to address a growing budget deficit. By 2013 the economy had contracted 26%, compared with the pre-crisis level of 2007. Greece met the EU's Growth and Stability Pact budget deficit criterion of no more than 3% of GDP in 2007-08, but violated it in 2009, with the deficit reaching 15% of GDP. Austerity measures reduced the deficit to about 4% in 2013, including government debt payments, but the deficit spiked to 12.7% of GDP in 2014. Deteriorating public finances, inaccurate and misreported statistics, and consistent underperformance on reforms prompted major credit rating agencies to downgrade Greece's international debt rating in late 2009, 2009 and led the country into a financial crisis. Under intense pressure from the EU and international market participants, the government adopted accepted a medium-term austerity bailout program that includes cutting called on Athens to cut government spending, decreasing decrease tax evasion, overhauling overhaul the health-care civil-service, health-care, and pension systems, and reforming reform the labor and product markets. Athens, Austerity measures reduced the deficit to 3% in 2015. Successive Greek governments, however, faced long-term challenges failed to continue pushing push through many of the most unpopular reforms in the face of widespread unrest political opposition, including from the country's powerful labor unions and the general public.
In April 2010, a leading credit agency assigned Greek debt its lowest possible credit rating, and in May 2010, the International Monetary Fund and Euro-Zone euro-zone governments provided Greece emergency short- and medium-term loans worth $147 billion so that the country could make debt repayments to creditors. In exchange for the largest bailout ever assembled, the government announced combined spending cuts and tax increases totaling $40 billion over three years, on top of the tough austerity measures already taken. Greece, however, struggled to meet 2010 the targets set by the EU and the IMF, especially after Eurostat - the EU's statistical office - revised upward Greece's deficit and debt numbers for 2009 and 2010. European leaders and the IMF agreed in October 2011 to provide Athens a second bailout package of $169 billion. The second deal however, called for holders of Greek government bonds to write down a significant portion of their holdings. As holdings to try to alleviate Greece’s government debt burden. However, Greek banks held banks, saddled with a significant portion of sovereign debt, the banking system was were adversely affected by the write down and $60 billion of the second bailout package was set aside to ensure the banking system was adequately capitalized. In exchange for the second loan, bailout, Greece promised to introduce an additional $7.8 billion in austerity measures during 2013-15. However, the massive austerity cuts have prolonged Greece's economic recession and depressed tax revenues. Greece's lenders have continually called on Athens to step up efforts to increase tax collection, dismiss public servants, privatize public enterprises, to reduce the size of government, and to rein in health spending. These austerity measures were designed to generate $7.8 billion in savings during 2013-15, but in fact prolonged Greece's economic recession and depressed tax revenues.
Investor confidence In 2014, the Greek economy began to show signs of strengthening by turn the end of 2013, and corner on the decline in GDP slowed to 3.9% that year, Greece’s best performance since 2009. recession. Greece subsequently marked achieved three significant milestones in 2014: milestones: balancing its 2013 the budget - not including debt repayments; re-entering issuing government debt in financial markets in April with for the first issue of government debt time since 2010; and posting its first quarter of positive generating 0.7% GDP growth — the first economic expansion since 2008. Buoyed by Greece’s success, Prime Minister Antonios SAMARAS 2007.
Despite the nascent recovery, widespread discontent with austerity measures helped propel the far-left Coalition of the Radical Left (SYRIZA) party into government in October announced plans to exit its bailout program early, provoking a plunge national legislative elections in the Greek stock January 2015. Between January and debt markets that pushed Greece back to July 2015, frustrations between the negotiating table with its creditors SYRIZA-led government and ultimately resulted in an agreement to extend the Greece’s EU portion and IMF creditors over the implementation of Greece’s bailout through February 2015. The measures and disbursement of funds led the Greek economy posted an annual economic growth rate government to run up significant arrears to suppliers and Greek banks to rely on emergency lending, and also called into question Greece’s future in the euro zone. To stave off a collapse of 0.8 percent the banking system, Greece imposed capital controls in 2014, June 2015 shortly before rattling international financial markets by becoming the first year of positive growth since 2008. However, widespread discontent developed nation to miss a loan payment to the IMF. Unable to reach an agreement with austerity measures resulted in creditors, Prime Minister Alexios TSIPRAS held a victory nationwide referendum on 5 July on whether to accept the terms of Greece’s bailout, campaigning for the anti-austerity SYRIZA ultimately successful “no” vote. The TSIPRAS government subsequently agreed, however, to a new $96 billion bailout in order to avert Greece’s exit from the January 2015 parliamentary elections. In February, monetary bloc. On 20 August, Greece reached a tentative agreement with signed its third bailout which allowed it to cover significant debt payments to its EU and IMF creditors that would provide emergency liquidity and ensure the banking sector retained access to Greece emergency liquidity. The TSIPRAS government — which retook office on 20 September after calling new elections in exchange for significant late August — successfully secured disbursal of two delayed tranches of bailout funds. Despite the economic reforms. Uncertainty regarding Greece’s future turmoil, Greek GDP did not contract as sharply as feared, with official source estimates of a -0.2% contraction in the Eurozone has dampened investor confidence and lowered growth projections for 2015. 2015, boosted in part by a strong tourist season.

Greece has a capitalist economy with a public sector accounting for about 40% of GDP and with per capita GDP about two-thirds that of the leading euro-zone economies. Tourism provides 18% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP.
The Greek economy averaged growth of about 4% per year between 2003 and 2007, but the economy went into recession in 2009 as a result of the world financial crisis, tightening credit conditions, and Athens' failure to address a growing budget deficit. By 2013 2013, the economy had contracted 26%, compared with the pre-crisis level of 2007. Greece met the EU's Growth and Stability Pact budget deficit criterion of no more than 3% of GDP in 2007-08, but violated it in 2009, with when the deficit reaching reached 15% of GDP. Deteriorating public finances, inaccurate and misreported statistics, and consistent underperformance on reforms prompted major credit rating agencies to downgrade Greece's international debt rating in late 2009 and led the country into a financial crisis. Under intense pressure from the EU and international market participants, the government accepted a bailout program that called on Athens to cut government spending, decrease tax evasion, overhaul the civil-service, health-care, and pension systems, and reform the labor and product markets. Austerity measures reduced the deficit to 3% 4.5% in 2015. 2016. Successive Greek governments, however, failed to push through many of the most unpopular reforms in the face of widespread political opposition, including from the country's powerful labor unions and the general public.
In April 2010, a leading credit agency assigned Greek debt its lowest possible credit rating, and in May 2010, the International Monetary Fund IMF and euro-zone governments provided Greece emergency short- and medium-term loans worth $147 billion so that the country could make debt repayments to creditors. In exchange for the largest bailout ever assembled, the government announced combined spending cuts and tax increases totaling $40 billion over three years, on top of the tough austerity measures already taken. Greece, however, struggled to meet the targets set by the EU and the IMF, especially after Eurostat - the EU's statistical office - revised upward Greece's deficit and debt numbers for 2009 and 2010. European leaders and the IMF agreed in October 2011 to provide Athens a second bailout package of $169 billion. The second deal called for holders of Greek government bonds to write down a significant portion of their holdings to try to alleviate Greece’s government debt burden. However, Greek banks, saddled with a significant portion of sovereign debt, were adversely affected by the write down and $60 billion of the second bailout package was set aside to ensure the banking system was adequately capitalized. In exchange for the second bailout, Greece promised to step up efforts to increase tax collection, to reduce the size of government, and to rein in health spending. These austerity measures were designed to generate $7.8 billion in savings during 2013-15, but in fact prolonged Greece's economic recession and depressed tax revenues.
In 2014, the Greek economy began to turn the corner on the recession. Greece achieved three significant milestones: balancing the budget - not including debt repayments; issuing government debt in financial markets for the first time since 2010; and generating 0.7% GDP growth — the first economic expansion since 2007.
Despite the nascent recovery, widespread discontent with austerity measures helped propel the far-left Coalition of the Radical Left (SYRIZA) party into government in national legislative elections in January 2015. Between January and July 2015, frustrations between the SYRIZA-led government and Greece’s EU and IMF creditors over the implementation of bailout measures and disbursement of funds led the Greek government to run up significant arrears to suppliers and Greek banks to rely on emergency lending, and also called into question Greece’s future in the euro zone. To stave off a collapse of the banking system, Greece imposed capital controls in June 2015 shortly before rattling international financial markets by becoming the first developed nation to miss a loan payment to the IMF. Unable to reach an agreement with creditors, Prime Minister Alexios TSIPRAS held a nationwide referendum on 5 July on whether to accept the terms of Greece’s bailout, campaigning for the ultimately successful “no” vote. The TSIPRAS government subsequently agreed, however, to a new $96 billion bailout in order to avert Greece’s exit from the monetary bloc. On 20 August, Greece signed its third bailout which allowed it to cover significant debt payments to its EU and IMF creditors and ensure the banking sector retained access to emergency liquidity. The TSIPRAS government — which retook office on 20 September after calling new elections in late August — successfully secured disbursal of two delayed tranches of bailout funds. Despite the economic turmoil, Greek GDP did not contract as sharply as feared, with official source estimates of a -0.2% contraction in 2015, boosted in part by a strong tourist season.
In 2016, Greece saw slight improvements in GDP and unemployment. The economy remains stagnant, because of unfinished economic reforms, a massive non-performing loan problem, and ongoing uncertainty regarding the political direction of the country. Some estimates put Greece’s black market at 20- to 25% of GDP, as more people have stopped reporting their income to avoid paying taxes that, in some cases, have risen to 70% of an individual’s gross income. These issues will continue to be a drag on the economy in 2017 and further delay recovery from the financial crisis.

Greece has a capitalist economy with a public sector accounting for about 40% of GDP and with per capita GDP about two-thirds that of the leading euro-zone economies. Tourism provides 18% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP.
The Greek economy averaged growth of about 4% per year between 2003 and 2007, but the economy went into recession in 2009 as a result of the world financial crisis, tightening credit conditions, and Athens' failure to address a growing budget deficit. By 2013, the economy had contracted 26%, compared with the pre-crisis level of 2007. Greece met the EU's Growth and Stability Pact budget deficit criterion of no more than 3% of GDP in 2007-08, but violated it in 2009, when the deficit reached 15% of GDP. Deteriorating public finances, inaccurate and misreported statistics, and consistent underperformance on reforms prompted major credit rating agencies to downgrade Greece's international debt rating in late 2009 and led the country into a financial crisis. Under intense pressure from the EU and international market participants, the government accepted a bailout program that called on Athens to cut government spending, decrease tax evasion, overhaul the civil-service, health-care, and pension systems, and reform the labor and product markets. Austerity measures reduced the deficit to 4.5% 1.3% in 2016. 2017. Successive Greek governments, however, failed to push through many of the most unpopular reforms in the face of widespread political opposition, including from the country's powerful labor unions and the general public.
In April 2010, a leading credit agency assigned Greek debt its lowest possible credit rating, and in May 2010, the IMF and euro-zone governments provided Greece emergency short- and medium-term loans worth $147 billion so that the country could make debt repayments to creditors. Greece, however, struggled to meet the targets set by the EU and the IMF, especially after Eurostat - the EU's statistical office - revised upward Greece's deficit and debt numbers for 2009 and 2010. European leaders and the IMF agreed in October 2011 to provide Athens a second bailout package of $169 billion. The second deal called for holders of Greek government bonds to write down a significant portion of their holdings to try to alleviate Greece’s government debt burden. However, Greek banks, saddled with a significant portion of sovereign debt, were adversely affected by the write down and $60 billion of the second bailout package was set aside to ensure the banking system was adequately capitalized.
In 2014, the Greek economy began to turn the corner on the recession. Greece achieved three significant milestones: balancing the budget - not including debt repayments; issuing government debt in financial markets for the first time since 2010; and generating 0.7% GDP growth — the first economic expansion since 2007.
Despite the nascent recovery, widespread discontent with austerity measures helped propel the far-left Coalition of the Radical Left (SYRIZA) party into government in national legislative elections in January 2015. Between January and July 2015, frustrations grew between the SYRIZA-led government and Greece’s EU and IMF creditors over the implementation of bailout measures and disbursement of funds led the funds. The Greek government to run began running up significant arrears to suppliers and suppliers, while Greek banks to rely relied on emergency lending, and also called into question Greece’s future in the euro zone. zone was called into question. To stave off a collapse of the banking system, Greece imposed capital controls in June 2015 shortly before rattling international financial markets by becoming 2015, then became the first developed nation to miss a loan payment to the IMF. IMF, rattling international financial markets. Unable to reach an agreement with creditors, Prime Minister Alexios TSIPRAS held a nationwide referendum on 5 July on whether to accept the terms of Greece’s bailout, campaigning for the ultimately successful “no” "no" vote. The TSIPRAS government subsequently agreed, however, to a new $96 billion bailout in order to avert Greece’s exit from the monetary bloc. On 20 August, August 2015, Greece signed its third bailout which allowed bailout, allowing it to cover significant debt payments to its EU and IMF creditors and to ensure the banking sector retained access to emergency liquidity. The TSIPRAS government — which retook office on 20 September 2015 after calling new elections in late August — successfully secured disbursal of two delayed tranches of bailout funds. Despite the economic turmoil, Greek GDP did not contract as sharply as feared, with official estimates of a -0.2% contraction in 2015, boosted in part by a strong tourist season.
In 2016, 2017, Greece saw slight improvements in GDP and unemployment. The economy remains stagnant, because of unfinished Unfinished economic reforms, a massive non-performing loan problem, and ongoing uncertainty regarding the political direction of the country. country hold the economy back. Some estimates put Greece’s black market at 20- to 25% of GDP, as more people have stopped reporting their income to avoid paying taxes that, in some cases, have risen to 70% of an individual’s gross income. These issues will continue to be a drag on the economy in 2017 and further delay recovery from the financial crisis.

Greece has a capitalist economy with a public sector accounting for about 40% of GDP and with per capita GDP about two-thirds that of the leading euro-zone economies. Tourism provides 18% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP.
The Greek economy averaged growth of about 4% per year between 2003 and 2007, but the economy went into recession in 2009 as a result of the world financial crisis, tightening credit conditions, and Athens' failure to address a growing budget deficit. By 2013, the economy had contracted 26%, compared with the pre-crisis level of 2007. Greece met the EU's Growth and Stability Pact budget deficit criterion of no more than 3% of GDP in 2007-08, but violated it in 2009, when the deficit reached 15% of GDP. Deteriorating public finances, inaccurate and misreported statistics, and consistent underperformance on reforms prompted major credit rating agencies to downgrade Greece's international debt rating in late 2009 and led the country into a financial crisis. Under intense pressure from the EU and international market participants, the government accepted a bailout program that called on Athens to cut government spending, decrease tax evasion, overhaul the civil-service, health-care, and pension systems, and reform the labor and product markets. Austerity measures reduced the deficit to 1.3% in 2017. Successive Greek governments, however, failed to push through many of the most unpopular reforms in the face of widespread political opposition, including from the country's powerful labor unions and the general public.
In April 2010, a leading credit agency assigned Greek debt its lowest possible credit rating, and in May 2010, the IMF and euro-zone governments provided Greece emergency short- and medium-term loans worth $147 billion so that the country could make debt repayments to creditors. Greece, however, struggled to meet the targets set by the EU and the IMF, especially after Eurostat - the EU's statistical office - revised upward Greece's deficit and debt numbers for 2009 and 2010. European leaders and the IMF agreed in October 2011 to provide Athens a second bailout package of $169 billion. The second deal called for holders of Greek government bonds to write down a significant portion of their holdings to try to alleviate Greece’s government debt burden. However, Greek banks, saddled with a significant portion of sovereign debt, were adversely affected by the write down and $60 billion of the second bailout package was set aside to ensure the banking system was adequately capitalized.
In 2014, the Greek economy began to turn the corner on the recession. Greece achieved three significant milestones: balancing the budget - not including debt repayments; issuing government debt in financial markets for the first time since 2010; and generating 0.7% GDP growth — the first economic expansion since 2007.
Despite the nascent recovery, widespread discontent with austerity measures helped propel the far-left Coalition of the Radical Left (SYRIZA) party into government in national legislative elections in January 2015. Between January and July 2015, frustrations grew between the SYRIZA-led government and Greece’s EU and IMF creditors over the implementation of bailout measures and disbursement of funds. The Greek government began running up significant arrears to suppliers, while Greek banks relied on emergency lending, and Greece’s future in the euro zone was called into question. To stave off a collapse of the banking system, Greece imposed capital controls in June 2015, then became the first developed nation to miss a loan payment to the IMF, rattling international financial markets. Unable to reach an agreement with creditors, Prime Minister Alexios TSIPRAS held a nationwide referendum on 5 July on whether to accept the terms of Greece’s bailout, campaigning for the ultimately successful "no" vote. The TSIPRAS government subsequently agreed, however, to a new $96 billion bailout in order to avert Greece’s exit from the monetary bloc. On 20 August 2015, Greece signed its third bailout, allowing it to cover significant debt payments to its EU and IMF creditors and to ensure the banking sector retained access to emergency liquidity. The TSIPRAS government — which retook office on 20 September 2015 after calling new elections in late August — successfully secured disbursal of two delayed tranches of bailout funds. Despite the economic turmoil, Greek GDP did not contract as sharply as feared, boosted in part by a strong tourist season.
In 2017, Greece saw improvements in GDP and unemployment. Unfinished economic reforms, a massive non-performing loan problem, and ongoing uncertainty regarding the political direction of the country hold the economy back. Some estimates put Greece’s black market at 20- to 25% of GDP, as more people have stopped reporting their income to avoid paying taxes that, in some cases, have risen to 70% of an individual’s gross income.