GREECE

Promising prospects but risks remain

B2

MEDIUM RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

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GDP USD209.8528bn (World ranking 51, World Bank 2019)
Population 10.72mn (World ranking 85, World Bank 2019)
Form of state Parliamentory Republic
Head of government Kyriakos Mitsotakis (Prime Minister)
Next elections 2023
  • Major economic hub of Southeast Europe
  • Strong tourism sector
  • Labour market reforms boost competitiveness
  • Fiscal surplus
  • Sizeable cash buffer to cover public financing needs beyond 2020
  • Capital controls in place since July 2015
  • Rigid business environment
  • Fragile banking sector
  • High corporate tax rates
  • Low R&D expenditure
  • High public debt burden

Trade structure by destination/origin

(% of total)

Exports Rank Imports
Italy 11%
1
12% Germany
Germany 7%
2
9% Italy
Cyprus 6%
3
7% Russia
Turkey 6%
4
6% China
Bulgaria 5%
5
5% Netherlands

Trade structure by product

(% of total)

Exports Rank Imports
Refined Petroleum Products 27%
1
14% Crude Oil
Non Ferrous Metals 7%
2
7% Pharmaceuticals
Other Edible Agricultural Prod 5%
3
6% Refined Petroleum Products
Fats 5%
4
5% Ships
Preserved Fruits 5%
5
4% Plastic Articles
Late payments in Greece are frequent and, despite regular improvements, the average DSO remains high compared to other EU markets – 100 days on average. This is not entirely surprising as the law has implemented EU rules on late payment with flexibility.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

Although the courts are fairly reliable, the legal process remains slow, despite recent procedural amendments to comply with EU requirements in order to streamline of the process. Enforcement may also be difficult as debtors are often well aware of loopholes in the system.

Insolvency law provides a debt renegotiation mechanism, although collecting money at this stage remains a significant challenge.

Contact

Contact Euler Hermes

Economic Research Team

research@eulerhermes.com

Ana Boata

Senior Economist for Europe

ana.boata@eulerhermes.com

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