U.s. Department of Commerce

Business Opportunities in Greece U.s. Department of Commerce

Greece finds itself in one of its most challenging economic periods in recent history. The global financial crisis has exposed and exacerbated fiscal and other structural weaknesses in the Greek economy that led to a ballooning fiscal deficit estimated at 15.4 percent of GDP in 2009, compared to the E. U. ceiling of three percent, and one of the highest levels of public debt in the Eurozone. Compounding its economic problems, Greece has a history of other business challenges such as high levels of corruption and tax evasion, and very low levels of business transparency. To address its economic crisis, Greece has received loans from the European Central Bank and the International Monetary Fund (IMF) and has instituted a number of austerity measures and reforms in compliance with the loan stipulations. Implementation of these measures has been challenging, with frequent strikes and other forms of social unrest. The Greek government continues to institute changes and is confident that Greece can weather this storm. While unemployment remains high (around 13 percent), consumption has dropped and consumer confidence has declined. Some success has been attained, most notably a drop in the deficit to 9.6 percent of GDP. In spite of the market challenges, many U. S. companies have been quite successful in the Greek market. Key to successfully doing business in Greece is conducting due diligence and partnering with a local representative, and there are many effective Greek companies assisting U. S. firms in this market. U. S. products are viewed favorably in Greece for their innovation and quality, and despite stiff competition from the E. U. and Asia, are ubiquitous in this market.