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Business Business Profile: The public sector is still a dominant force in the Greek economy despite increasing deregulation and privatisation. GDP increased by 3.5% in 1997, compared to a 2.5% increase in 1996, and was projected to be the same for 1998. For the last few years, unemployment has fluctuated between 9 and 10%. The country receives substantial funding from the European Union (equivalent to 5% GDP per annum) and macroeconomic policies are currently geared towards the adoption of the European single currency. The most drastic step taken by the government to prepare for EMU was the devaluation of the drachma by 13.8% in March 1998. Greece is a key link to the emerging markets in the Balkans and the eastern Mediterranean. As the only EU state in this part of Europe, the country is regarded as a zone of relative economic and political stability within a particularly volatile region. Greece has the largest merchant marine fleet in the world with an 18% share of international commercial tonnage. Greater Athens, including the port of Piraeus, is a major hub for international transport and trade; a role that will be enhanced by the development of Eleftherios Venizelo, the new international airport. The metropolitan area also accounts for most of the country's industry: tourism, textiles, machine tools and shipping are among the key sectors. Outside Athens, the agricultural sector continues to be a major employer (21%) [Eurostat], although its contribution to national GDP is declining. Tourism is a major contributor to GDP throughout the country. Since 1987, the Athens Stock Exchange (website: www.ase.gr) has become one of the largest of 25 emerging stock exchanges with a market capitalisation of ECU 34 billion (October 1997). Good market performance increased the General Index by more than 58% in 1997. Major Greek companies include Motor Oil Helas, Greek Bottling Company, Athenian Brewery, AGET Herakles, Hellenic Sugar Industry and Intralcom Telecom. The awarding of the 2004 Olympic Games is prompting a surge of investment and is regarded as a major boost to the city's international standing. The decision taken in June 2000 to admit Greece to the single European currency, is another boost to the country's economy. Austerity measures introduced to meet the EMU's (European Monetary Union) requirements have resulted in a downward rate of inflation: 5.9% in 1997 was the lowest rate since 1965, and by March 2000 this was further reduced to 2.0%. Business Etiquette: The working day is fairly flexible. In general, offices are open 0830-1630 although shops and banks may have different hours; smaller organisations still close for a siesta in the afternoon during summer. Punctuality is expected for meetings, although a Greek host may keep you waiting for a short time. It is usual to shake hands to greet a business contact, but embracing and kissing colleagues is not uncommon, although not at first acquaintance. Business cards are exchanged after introductions have been made. Business attire is relatively formal; men are expected to wear suits and ties and women should wear suits. More casual wear is sometimes acceptable during the summer but local business people tend to dress conservatively. Gifts from abroad are well received but not expected, unless a visitor is invited to a colleague's home, in which case a gift of wine, sweets or flowers is usual. |
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