country economic memorandum cory greece file...1999/12/03 · report no. 1755a-gr country economic...
TRANSCRIPT
Report No. 1755A-GR
Country Economic MemorandumGreece FILE corYFebruary 8, 1978
Europe, Middle East and North Africa RegionCountry Programs Department II
FOR OFFICIAL USE ONLY
Document of the World Bank
This document has a restricted distribution and may be used by recipientsonly in the performance of their official duties Its contents may nototherwise be disclosed without World Bank authorization
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
Pub
lic D
iscl
osur
e A
utho
rized
CURRENCY EQUIVALENTS
Through March , 1975!
US$ 1.00 = Dr. 30.00
Dr. 1.00 = US$ 0.0333
Managed floating system since March 7, 1975
Juine 1977:
US$ 1.00 = Dr. 37.102
Dr. 1.00 = US$3.02695
1/ IMF, International Financial Statistics,December, 1977
FOR OFFICIAL USE G-INLY
COUNTRY ECONOMIC MEMORANDUM
GREECE
TABLE OF CONTENTS
Page No.
MAP
BASIC DATA
SUMMARY i-v
I. - INTRODUCTION 1
II. RECENT ECONOMIC DEVELOPMENTS 2
A. Output and Income Growth 2
B. Employment 3
C. Balance of Payments and External Debt 4
D. Public Sector Developments 8
E. Monetary and Price Developments 12
F. Prospects for 1977 14
III. DEVELOPMENT ISSUES AND MEDIUM-TERM PROSPECTS 15
A. Development Issues 15
B. Medium and Long-Term Prospects 17
STATISTICAL ANNEX
This Memorandum was prepared by Jayanta Roy (Mission Chief), Abed-AllaUsama Malki (General Economist), and Christiaan Poortman (General Economist)who visited Greece in June 1977. Since the report was prepared in 1977,references to the "last year" should be understood to refer to 1976.
This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.
\ i ~~~~~~~B U L G A R I A
ALBANIA % > _U A
, , g XKater i : >*+ - ~... ......... ...
4~~~~_F> vRISSA "" , ' i ~~~~~~~~~~~~~~~~~~~~~~~~~T U R K E YT.ik~l .....
., p u r s . _,,-dit'.< tx
Aft. ~ ~ ~ ~ ~ ~ ~ ~ A
: t 3ENrRAXt GREECE .X* ) $e
IONIAN Seiin 4\iuo(<> ISLANDS - c=k=<
: fX zS° ~~~~~........... AE. GEAN\.°ssos o
A Korlntaf .P~~~~IRAEUS\,.-
GREECE . 7' '........... '.....
"^{e~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~mc ro4 '.* ''''
... . - - . R^§l"ys ~~~~~~~~~~~~~~~~~~~~~~~~... .. ..........
Z K^jer pepri%ttfor. eetAtQrs *, i ''" *---~~~~~~~~~~~~~~~~~~~~~~~~~~~~~-,K,
_ = < N~~~~~~
G R E ECE 'a-a..~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~.......
W Ma_-r popsiatiac Cantors
BASIC DATA
GREECE - SOCIAL INDICATORS Page 1 of 4 ages
LA'O A:EA (THOJ rM2)--------------- GREECE REFERENCE COUNTRIES (1970)
'QTAL 131.9 MOST R,CENT
ACRIC 91.6 19GO 1970 EST "IATE SPAIN BELGIUM/LUXE FRANCE**
GNP PER CAPITA (USS) 510.0* 1360.0* 2590.0*/a 1580.0* 3800.0* 3670.0*
PCPJLATION AND VITAL STATISTICS
POPULATION (MID-YR. MILLION) 8.3 8.8 9.1/a 33.6 9.7 50.8
POPULATION DENSITYPEP SQUARE KM. 63.0 67.0 69.0/a 67.0 317.0 93.0
PER SQ. hIM. AGRICULTURAL LAND 93.0 96.0 93.07a 105.0 604.0 156.0
VITAL STATISTICSCRUDE SIRTH RATE (/THOU, AV) 19.4 18.1 15.4 21.0 16.3 17.6
CRUCE DEATH RATE (/THOU,AV) 7.3 8.0 9.4 8.8 12.3 11.2
INFANT MORTALITY RATE (/THOU) 40.1 29.6 24.0 27.9 21.1 18.2
LIFE EXPECTANCY AT BIRTH (YRS) 68.0 70.9 71.8 70.5 70.1 71.6
GROSS REPRODUCTION RATE 1.1 1.0 1.0 1.4 1.3 1.3
POPULATION GROWTH RATE (%)TOTAL 1.0 0.5/a 0.7 1.1 0.6 1.1
URBAN 2.1 1.5 . . 2.0 1.3 2.5
URBAN POPULATION (% OF TOTAL) 57.0 62.6 64.8/b 59.1 71.2 70.2
AGE SRUCTURE (PERCENT)0 TO 14 YEARS 26.7 24.9 24.2 27.8 23.7 24.015 TO 64 YEARS 65.1 64.0 63.8 62.5 63.0 62.665 YEARS AND OVER 8.2 11.1 12.0 9.7 13.3 13.4
AGE DEPENDENCY RATIO 0.5 0.6 0.6 0.6 0.6 0.6
ECONO11C DEPENDENCY RATIO 0.9 . 1. 1/b 1.1 1.0 0.9
FAMILY PLANNINGACCEPTORS (CUMULATIVE, THOU) . .. .
USERS (X OF MARRIED WOMEN) .. .. ..
EMPLOYMENT
TOTAL LABOR FORCE (THOUSAND) 3600.0 /a .. 3300.0 11900.0 3600.0 20600.0
LABOR FORCE IN AGRICULTURE (%) 54.0 .. 34.0 25.0 4.5 /a 15.1 /a
UNEMPLOYED (X Of LABOR FORCE) 6.0 /b *- 3.0 /C * 1 /a 2.2 2.1
INCOME DISTRIBUTION
V OF PRIVATE INCOME RECOD BY-HIGHEST 5% OF HOUSEHOLDS 18.7 /C .. .. ..
HIGHEST 20% OF HOLSEHOLOS 44.7 71C .. .. ..
LOWEST 20% OF HOUSEHOLOS 6.3 7 * .
LOWEST 40% OF HOUSEHOLDS 17.4 7E **
DISTRIBUTION OF LAND OWNERSHIP
X OWNED 6Y TOP 10% OF OWNERS .. .. 27.5 IdX OD,NED BY SMALLEST 10% OWNERS .. .. 2.6t - .
HEALTH AND NUTRITION
POPULATION PER PHYSICIAN 790.0 /d 620.0 500.0 740.o/b 650.0/b 750.oPOPULATION PER NURSING PERSON . 1260.0/dB 1140.0 1280.0/e .. 410.0 370.0POPULATION PER HOSPITAL BED 170.0 -t 160.0 160.0 220.0 120.0 140.0/b
PER CAPITA SUPPLY OFCALORIES I% OF REQUIREMENTS) 120.0 116.0 128.0/f 107.0 128.0/C 127.0
PROTEIN (GRAMS PER DAY) 99.0 99.0 113.07F 81.0 94.072 104.0
-OF WHICH ANIMAL AND PULSE 39.0 52.0/b . . 40.0 56.07Th 66.0
DEATH RATE (/THOU) AGES 1-4 .. .. 0-9/b 0.9 0.9 0.6
EDUCATION
ADJUSTED ENROLLMENT RATIO
PRIMARY SCHOOL 105.0 110.0 105.0 -123.0 .. 117.0SECONDARY SCHOOL . . 70.0 76.0 s7.0 ..
7 4.0
YEARS OF SCHOOLING PROVIDED
(FIRST AND SECOND LEVEL) 12.0 12.0 12.0 11.0 14.0 14.0
VOCATIONAL ENROLLMENT(% OF SECONDARY) 17.0 /h 20.0 22.0/b 20.0 60.0 19.0
ADULT LITERACY RATE (%) 80.0 82.0 .. 94.0 99.0 99.0
HOUSING
PERSONS PER ROOM (URBAN) 1.4 * 0.9g/b , .. 6/d 0.9
OCCUPIED DWELLINGS WITHOUT 0 d_PIPED WATER ) 71 .0/i * 35.0/b,g * * 12.O/e 9.0
ACCESS TO ELECTRICITY -
I% OF ALL OW~ELLINGS) 53.0 .. 88.0/b . . 100.0 99.0
RURAL OELLINGS CONNECTED 8 b970 ELECTRICITY (5) 140 77.0/b .. 98.0 98.0
CONSUMPTION
RATIC RECEIVERS (PER THOU POP) 85.0 111.0 112.0 214.0 350.0 314.0
PSSSE,.. ;[R CARS (PER THOU POP) V.0 26.0 42.0 71.0 213.0 254.0
ELECTRICITY (KVWH/YR PER CAP) 274.0 1072.0 1583.0 1634.0 3199.0 2759.0
NLWSIRlNT )RG;YR PER CAP) 2.6 1.6 5.4 5.8 18.6 11.9
SEE NOTES AND DEFINITIONS ON REVERSE
GREECE - SOCIAL INDICATORS- BASIC DATAPage 2 of 4 pages
U,le- ntherwfue noted, dat. for 1,960 refer to any year between 1959 and 1961, Iur 191( hetuc_e 19hd .ov' 19)70, aod for Mo-t Rc.-nt Fstati tebtc'
1973 and 1975.
* GNP' par capits data are based on the World Bank 451.5 -ntiadalogy (1974-ti basis)
Considering Greece's fasnlnenc entry into the EurOp... C-m,uitiy, c-pari-.) aft),d frnr"- --onn is appr,pri'5te.
CRE,Ii:E 1960 /a Fccli,ding p-ron in -mpOiory .11fior errot / nl,.uuf ' rvn; 'r1957-58. urban; Id 1962:
T. I-nclotIng nid'ivea and notae- with ni b.tIfe y qo, I If ka t io. it ;.o-:'Ji*r -te-tty homypitola / 1960-62;
7i1, Tea-her traIning not inc luded In -oais cbol1 erolrt T
i bell'e only.
1970 N. iv to emigration .. p.l.ti-s growth rate Ix lower th.n the rate of n.t,ral ihorca-ne 16 1967.
MOST REC 7 NT ITNATE : Ia 1976; If 1971: Ic le-tading ,ur-plnc'ed s-otnen Id 1972; /e Including assistant nursts and
__________________ __ idwioeCs if 19697Ti; Inaid, oy
SPAfIN 1970 /a Fiploymeflt offfc. estinate: .6 R~gf.t.red, nor all pcaflin flo t -,ntry.
BILlI ON 1970 Ia E.clading anenptoyed; lb Including physicians practic.ing d-ntfatry; Ic BeIlga and L.xe.,bo'arg; /d Total urban
and rural' Ie inside.
FRfANCE 1970 "a Excluding unemployed; lb 'o,veram,t.t hospital etbi'cna
R14. October, 20. 1977
OS!IINO'IOifS OF SOCITAL Ii'I1CATOIM
Lard Area (thou .2i _______i I ____Ppuato_d_i_dbYnb__o_pt_j
ro-tai1 Total surface area Popisug ar ara nd ,lnd ,turs-L Inipro ouaindvddb ubro rcii,Agrioprsn an raan nad aes -- al a:,-t femle graduate nurses, "trained" or "certified" flare.., and
Mgi. -lot recent e-tinate of agricultural area used temPorarily or pern- auxiliery person.. wiith training or erperfnc.-rnetly for crops, Paator.a, narket & kitehen gardens or to Ie. fallow, POytlatin P-r h-P,Ita bed - PoPuation decided by ntober of hospital bc,d,
GNP Per cpit. WS$)- GNP p- .pit. estmates at .rrent vailable in Publir atd private general and upecialioed hospital endCliPpercanta (SO)- iP pr caitaestmate atcurentmarket prices, rehabilitation o-te-e; exclude. nursing hones and establishmenta ftr
calculated by -axe covrinmethod aa World Bank Atlas (1973.75 basis): Cuatodisi and prevcntiveca,
1960; 1970 and 1975 data. Par -Pitta -PP1y If calorie, (% of Ceuret) -Copu'ted fro m energ
P-P-1-tion and itai statistic, ~~~~~~~~qu,ivalent of not food uuipplioa -valable In -outsry per capita per d-v
Population anid-yvita~ljuaiati: A.oava irt ilable supplies oteprian donetie production, iuports less enPort~,o cPofulaon (id-year esi- ioni 1 ao uyfrt if noat available, -avrage changS. in stock; net s-pplina exclude aoical fend, seeds, quantitino 1-d
of ro en-yea eatarats; 160, 1970 and 1975 data, In food process.ing and leases in diatribution; requit-remnsre estfc-'acod
pop. ~ ~~~~~~~~~~~~~~~~~~~bY FA0 based an physiological nee ds for nornoI actinity and health conuid-
Poultion density -ner square 'm- 'lid-yea Ppoplation par square kilomester sting environnenca temperature, body weights, age and sea distributions of
(100 beti rndorat of tpta squrea ofgi.la optda efrpopulation, and al11sing ITT for waste at hnuubold lev..l,
Popu.Lation densit - e qar olfyi.ln Cmue s bv o Per cap!t, supply of protein (grams p-r day) - Protein content of per capitaagricoitural land only. n~~~~~~~~~et supply of food Per day; net euPPIY Of food Is defined as above require-
Vital statistics ~~~~~~~~~~~~~~ments for all co-ntriea established by USIA Economic Reaearch Servit-
Vitdl etaisthiotsert provide for a nininra alwneof 60 grena of total protein per day, ondCrod bith ate er beoand, yaerage -oAtual lIIe births Per thousand of 20 Str.m of animal and' pulse protein, of which 10 gram sho-ld be anix,o1
xid-year population; ten-year arithmnetic avrgsending in 1960 and 1970, protein; tbese atandards are lower than tbose of 75 grmos of total pro-cin
and five-year average ending in 1975 for mosn recent estimate, and 23 grmnn Of animal protein as an averaic for the world, propoaed bv Pt)
Crude death rate per tho.sand, average - Annual, deaths per thousand of mid-year in the Third World food[ survy,
PoPulation; t-Y-yo aritincetic averages ending in 1960 and 1970 and fiv- Per capita protein supply fron -ntn1 and pulae - Protein supply of food
yer average ending in 1975 for nost recent eeti-ato. derived from animals and Pulses in graal per day.
Infant nurtality rate f/th-u) - Annual deatha af infants under .sa year of age Death eate (/th-S gaeo 1-4 - Annual deathu per tho..n. d In age groop 1-4
pi.erp-touand lin birtbs (r)years, to children In thin age group; suggested an an indicator OfLife opecancy t bith fys) -Average naaber of years of life remaining at nal-otrition.
birth; uollv five-ea a.er-ne- ending in 1960. 1970 and 1975 for deve'""-
Ing conre.EducationCrous reproduotion rate - Averge number of lIve daughtrer a oa ill hear AdJuated enrollment ratio - prinary scheol - Enrolment of all ages e pe-
in hor norma reproductive period If she experi-ene presen.t age-specific centage Of prinary school-age population; includes children aged b-1l '-'-r
fertility rates: usually five-year avr.age ending In 1960, 1970 and 1975 but adjusted for different lengthn of prim-ry education ; for oeunere- uithfor developing countries, univer-al education, enrollment nay emceed 1007. since famas pupils are belo,
PoPulstioni growth rste (1 - total - Compouand annual growth rates of nid-year or above tbe Official ochoaI nge.
population for 1950-hO, 1960-70 and 1970-75. Adl-tied onlrntratio - n-codary school - Computed as above; .econd-r
Population gronth rate (-1) - urban - Computed libe growth rate Of total education roqu,iren at I...ot four years of opproved primary irstructi-c;
pupulation; diff-eret definitions of urban areo- may affect comparability of pruld-n general, voctional or teacher training instructions for patils
data aoong countries. of 12 to 17 years of age; correspondence courana are generally excludod.
Urban population (7. of total) - Ratin of urban to tntsl plpulation; different Yeara of -ch-oling provided (first and -oond le-ola) - Total yeara of
definitions of urban areas may affect eomparability of data among enun,trisa, aenoolieb; at secondary level, --octional inatructio may he partially o
co,apletely e..cluded,
lAg struture (peren.t) - Children (0-14 years), working-age (15-64 years), Voua'iuoal e..ool1Int (7. ui .. eood.rv) - Vocational institutiana include
and retired (65 years and over) as perenmtages of nid-yesr population. e.:11,industrial or totbe progrem which operate iedependently ora
Aie dependenoy ratio - catio of population under 15 and 65 and ovr no thoae doparceocts of.seconar - nstitertieradut al,oradadrt). -
of ges 15 through 64, dtlt.c xei)-Ltrt dlu(bet edsdwie npr
go--rot depecdenoo ratio - Ratio of Ppoplation under 19 and 65 sod aunt to centoge ot total adu~lt populotion aged 15 ...or and over,
the laoro force in age group of 15-64 yearn.
yonilc Planning - accptr (cnltv,thu .;oltiv- n-her of acceptors Laies roinou.p
Of birth-cotrol devic- sunder ...Pi-eu of national fanilY planming p-ogfan etnr oe ubn crg ase fprosprro nocpe
,ione inception. coenootinaI dwellis. in urhan areas; dwellfcga exclude en.-pe-mnet
foxily planting - oners r1o are cnn pa.reencain of marid,,on of .srtrot -c ~nd -non-piod ports.
uhild-bearlog age (15-44 years) who use birth-ontro~ deoice to oh nacn.ied 0-pjiv ducilici withuo picd wter(/ - 0c-pied conventionl weli1 .
iucn -t ae ace group. in urban and rural area, ithout inuidn or oucide piped -at- faciliti-nas percentage of all occo pied dwellings.
En,ol -ncrt Acceas to eleotrtinty (, of all delin - Coeventioxa1 dwellfigs with
Totallar force (thousand) - Economically actine persens, Including armed el-otric ity In living quarters aa percent of total dwellings in urban and
focces and uneployed but excluding heus..wi-es. todeets, etc.; definitions -Irn areax,
in u-ri-os countries are not comparable. R-Ita d-!Inlogo comeuted to electricity (7,) - Compated as above for --:ra
Lato,r f-rc in agriculture ')-.rclno labor form. (In farming, forestry, d-Ili iu4u only.
lu-ting and fisbien0 aa percent.ag of total labor force.
irnpioed 7 f lborfore)- unm-ploy.d are usc-Ialy defined aa person who.oeot
-ec abi and willing ta tske a o, u of a Job on a given day, renoaed -ot isi- coorapotbo Al - l typex of recivers for radio br-l"
of a Job, and seaking work for a specified Ini-io period notr,, v;n oce ta genral p-olic pnr th--Ind of population; .ecludes unlice-ned cr.-ice-u
-ok; may cot be c-sparabie between ccuntriea d-, to different definitions in -anrinod it' ye ars whenrgsrto of radio neta wa in effvr;
of unemployed and oource of data. e.g. , enplo'onent office etatistin. samPle data far -ecnt years may nat be comparable since not coutries ab,lielof
sovys opulsory unemploymet insranrce, licrening.paen,
5rL97~.Sne :ho po) -Passenger cars canprine motor cern e. i.
j- dj1 1
ihtr io-n - Percentage of private incme (barb Inc...ah end hind) Iexa ihan eight persoa-; excludes ambe,l-xne, hearses and military
r-cclced by rlolce.t 57,. richest 207., poorest ZOO., end poorest 40% of hnes" t-hi.l-c
ho1do. Sicrctjv/rpr c),-Annual coner-ption of indusrtrIa, vrci lpablic acd pri-atr cIentriity in kilowott hoacs per -epita, generally
Sititinof land oner.h(p - per-entage of lard rowed by -rlthiear 10% ba..ed -c -,ru-uti- dst., wlth-t afiowIce .fo lses in gr idn bu I Io
and poorest 10". of land o-nrs, fog fat iup-.rt and coparts of electrIcity.jmje. r,LLtt 4 yr ercp - ret capi te annua conuption, in kilogrso
ilealil aNd ntritinm es.iac-d irn dn--ic yr-d-cti-n PIs net imports of newprint.
poflaCionperyhcfoin -Papulaigas divided be numnber of prarticing
Ephtyniciana qualified from a ndic-1 school at uni-ersitY lvsi.
BASIC DATA
Page 3 of 4 pages
GREECE - ECONOMIC DATA
GNP PER CAPITA in 1976 1 U: US$ 2,590
GROSS NATIONAL PRODUCT IN 1976 ANNUAL GROWTE RATE (%)
US $ MLn. % 1970-76
GNP at Market Prices 1/ 22,764 100,0 ,7Gross Domestic InvestmeTy 1/ 5,441 23.9 1.4Gross National Saving - 4,018 17.7 2.5Current Account Balance 2/ -1,092 -4.8 -Exports of Goods, NFS 2/ 4,340 19.1 11.4Imports of Goods, NFS 2/ 6,123 26.9 7.9
OUTPUT, LABOR FORCE ANDPRODUCTIVITY IN 1973 4/
Value Added Labor Force V.A, Per WorkerUS $ Min. % (1000) % US$ %
Agriculture 2,770 19.6 1,129 34.0 2,453 57,7Industry 4-743 33.6 863 26.0 5,496 129.4Services 6 590 46.8 1,328 40.0 4,962 116,8
Total/Average 14,000 3,320 100.0
GOVERNMENT FINANCE MONEY, CREDIT AND PRICES 5/(billion drachmae) (billion drachmae)
Central GovernmentAmount % of GNP 1973 1975 1976
1976 1976Money andQuasi Money 270.5 410.8 509.1
Ordinary Revenue 173.9 20.9 Bank Credit to Public Sector 35.1 51,0 62.0Ordinary Expenditure 165.8 20.0 Bank Credit to Private Sector 202.6 302.8 378.1Current Surplus 8.1 0.9Development Expenditure 40.2 4.8 (Z or Index Numbers)Foreign Financing of Deficits 1.0 0.1
Money & quasi Money as % of GDP 55,9 61,0 63,2Consumer Price Index (1974 - 100)78,8 113,4 128,5Ann. % changes in CPI 15,5 13.4 13,3
1/ Source:- World Bank Atlas, 1977 (forthcoming)
2/ Source: Table 3.1, Bank of Greece
3/ At constant prices.
4/ Employment data from X. Zolotas, Greece in the European CommunitX, Bank of Greece, Athens, 1976,
5/ Outstanding at end of period.
BASIC DATA
Page 4 of 4 pages
GRE -EONMC DATA
BALANCE OF PAYMENTS MERCRADISE XORTS (1976)
1974 1975 1976 Mlin. US $ %(Millions of US$)
Exports of Goods, NFS 3442,6 3877,7 4339,6 Agricultural 703.9 31,6Imports of Goods, NFS -52315 -5649.1 -6123,2 Mineral 136,2 6.1Resource Gap (- 5 deficit) -1788.9 -1771.4 -1783.6 Manufactures 1387.4 62.3
Total 2227,5 100,0Interest, Profits Payment (Net) -97.2 -100.0 -111.1Workers Remittances 673.5 783.0 803,2 EXTERNAL DEBT, DECEMBER 31; 1976Balance on Current Account -1212.6 -1088.4 -1091.5
Mln. US $Direct Foreign Investment 292,7 337,9 367.2Net Private Borrowing 200.3 325,4 281.6 Public Debt, incl. guaranteed 2377,1
Disbursements (282.5) (423.3) (346.0) Non-guaranteed Private Debt N.A,Amortization (-82.2) (-97.9) (-64.4) Total outstanding & Disbursed N.A.
Net Public Borrowing 333.4 295,9 -100.7Disbursements (431.8) (542.4) (182.9) DEBT SERVICE RATIO FOR 1976 % %Amortization ( 98.4) (-246,5) (-283,6)
Foreign Exchange Deposits 195.5 185.0 545.2 Public Debt, incl, guaranteed 11,2Other Items n.e.i. 1/ 78.1 -48.9 -7.5 Non-guaranteed Private DebtIncrease in Reserves 112.6 -6.9 5.7 Total outstanding & Disbursed
= increase)
IBRD LENDING DECEMBER 31, 1976 (Mln. US$)Official Reserves (end year) 903.7 910.6 905.0
Outstanding & Disbursed 81,8RATE OF EXChANGE Undisbursed 198,9
Outstanding incl, Undisbursed 280,7Managed floating system since
March 7, 1975
JUNE 1977US $1.00 = Dr. 37.102Dr. 1.00 = $0.02695
1/ Including IMF, changes in SDR's and Clearing Accounts, Errors and Omissions.2/ Debt service payment as percentage of exports of goods and non-factor services.
SUMARY
The economy has rebounded quickly from its stagflation phase in1974. Recovery, which began in the early months of 1975, has been sustained.GDP at constant prices, after a decline of 1.8 percent in 1974, rose by 4.5percent in 1975 and 5.4 percent in 1976. The 1976 growth was achieved despiteweak performance by the agricultural sector where output declined mainly dueto unfavorable climatic conditions. The industrial sector was the main enginefor growth, with an increase of about 9 percent over 1975. There was also arapid increase in value added in the services sector, particularly in transportand communications. On the demand side, the main domestic forces of expansionin 1975 and 1976 were the increases in public expenditure, private consumptionand investment in residential construction. Private investment has remainedsluggish (in fact manufacturing investment declined in the last two years),and total investment has not yet reached the 1973 peak. The reasons for thedecline of investment in manufacturing are attributed to uncertainty regardingthe future development of the world economy, accentuated to some extent by theanticipated entry of Greece in the EEC. Growth was accompanied by a lowerrate of inflation which was 11.7 percent in 1976, as against 15.7 percent in1975.
ii. The balance of payments in 1976 showed a steady improvement overthe last two years, with the deficit on current account stabilizing at alevel close to $1.1 billion. Although the merchandise trade deficit was stillsubstantial, it was offset by a sizeable increase in invisibles surplus. Mer-chandise exports, which grew by 9.8 percent in 1976, accounted for only 40percent of merchandise imports, even though the latter experienced only 9.4percent increase in nominal terms. The current account deficit in 1976 waslargely financed by a considerable inflow of private capital amounting to$1.2 billion. A substantial part of this inflow was in the form of foreignexchange deposits made by Greek seamen and emigrant workers amounting to $545million. Part of this considerable increase should be attributed to the veryfavorable terms granted to depositors of foreign exchange: in addition to ahigh interest rate, these included special mortgage facilities and exemptionof transfer tax, if the funds were converted into drachma and invested inreal estate. In addition, there was a large inflow of capital, mainly forpurchases of real estate in Greece. The combined inflow from these twosources, financed more than three-fourths of the current account deficitin 1976. Against this increase, gross private borrowing declined from$423.3 million in 1975 to $346 million in 1976 due to a substantial reduc-tion in suppliers' credit. Gross public sector borrowing also went downfrom $542.4 million in 1975 to $182.9 million in 1976, excluding CentralBank borrowing from the IMF. Foreign exchange reserves decreased by $6million and stood at $905 million in December 31, 1976, or equal to abouttwo months of imports. Due to negative net public borrowing in 1976, Greece'spublic external debt outstanding and disbursed at the end of 1976 stood at$2.38 billion, as against $2.55 billion in 1975. The debt service ratio forpublic external debt fell from 11.5 percent in 1975 to 11.2 percent in 1976.Inclusive of external private debt, it stood at about 15 percent in 1976.
- ii -
iii. The Government's fiscal policy in 1976 was expansionary, causingsome concern for generating inflationary pressures. The overall deficit rfthe consolidated public sector was equal to 6.7 percent of GNP as against5.7 percent of GNP in 1975. This deficit was mainly the -
stantial Central Government investment, a small part of which was financedby its own current surplus, and the rest by borrowing from the Central Q<The remainder of the overall consolidated public sector deficit stemmed fromthe subsidies provided to maintain farm incomes and stabilize essential con-sumer goods prices. The Central Government current budget in the last twoyears, has provided only a small surplus in spite of an unprecedented annualaverage increase in revenues, since it was matched by increased currentexpenditures on defense and Government salaries.
iv. Monetary policy since 1975, has been expansionary to promote rapidrecovery from the 1974 recession. However, the concern to maintain pricestability has moved it into a more restrictive stance since late 1976. Moneysupply increased by about 24 percent in 1976. This was the direct result ofa large Central Government investment program financed almost entirely by thebanking system. In 1976, the private sector also exercised an expansionaryeffect on the money supply, contrary to a contractionary impact in 1975,mainly because of high rate of credit expansion by commercial banks facili-tated by their high liquidity caused by, among other things, the increase inforeign exchange deposits. The monetary authorities, in late 1976, introducedsome restrictive measures to bring down private sector credit expansion.
v. In 1977 GDP is expected, on the basis of preliminary Governmentestimates, to grow at about 4.1 percent, which reflects a lower growth rateof the secondary sector and stagnant agricultural production. The major con-cern of the policy-makers is control of inflation, which presupposes tightcontrol on wage increases, money supply and credit expansion. The Governmenttarget of 10 percent inflation in 1977 seems rather optimistic. The balanceof payments deficit is expected to be broadly similar in size to that of 1976,and again is expected to be mostly financed by inflow of private capital inthe form of foreign exchange deposits and real estate investment. Fiscalpolicy continues to be expansionary, with the overall consolidated publicsector deficit rising to Dr. 62.2 billion, as against Dr. 55.5 billion in 1976.
vi. Despite Greece's strong growth performance during the last two years,which meshed manageable external deficits with a creditable decline in therate of inflation, the economy still faces some serious, though not insur-mountable, economic problems. These are: (i) Sluggish private investmentand sub-optimal structure of investment, which is weighted heavily in favorof investment in housing. (ii) Inflation - monetary and fiscal policies:although cost push elements may have been important in explaining inflationin Greece, in the last two years certain demand pull influences, mainly thelarge size of the public sector deficit, have generated additional inflationarypressures. (iii) Structural weakness in the balance of payments, implyinghigh reliance on invisibles surplus to ameliorate the growing trade deficit,with merchandise exports covering less than half of merchandise imports;moreover, there is a bias towards import of consumer goods as against capitalgoods and raw materials which need to be stepped up in order to allow invest-ment to rise in future. (iv) Inadequate long term development policies: the
- iii -
1976-1980 Development Plan has been delayed and does not appear fully to takeinto consideration the preparations essential prior to formal entry into theEEC to enable Greece to begin taking advantage, ab initio, of its entry. Partof the reason for this delay is that the main concern of the Government, whenit assumed power in July 1974, was the solution of the immediate economicproblems and the reorganization of administrative machinery. In addition,the Government decided to wait for more concrete results from the negotiationswith the EEC before finalizing the Plan.
vii. The medium and long-term growth prospects need to be viewed interms of the development effort detailed in the draft 1976-1980 Plan. Thedraft Plan calls for an annual growth rate of GDP between 6 and 7 percent,and a growth rate of investment of over 10 percent per annum. As regards theexternal sector, the current account deficit at the end of the Plan period in1980, is expected in nominal terms to remain about the same as in 1976, i.e.,around $1.1 billion. Exports, in nominal terms, are expected to grow at 18.1percent per annum, while imports are assumed to increase annually by 12.6percent. The surplus in invisibles is expected to grow at a rate of 11.8percent per year. Inflation is expected to average only 7 percent per annumover the Plan period. Some of the draft Plan targets seem rather ambitious onthe basis of actual performance in 1976 and anticipated outcome of 1977, andare now understood to be under review by the Government. But most of thetargets are indicative of the long-term prospects facing the Greek economy,provided the Government can ensure a smooth transition to EEC membership.
viii. The long-term prospects facing the Greek economy will cruciallydepend on the development strategies to be pursued by the Government,especially in view of the fact that the economy will have to withstandsuccessfully the initial adjustments resulting from EEC membership. Overthe long term, Greece stands to gain from full membership in the EEC, mainlybecause this will hasten deep rooted changes in its economy towards a moredeveloped and efficient production structure. However, these changes willdepend on large improvements of the economic infrastructure and moderniza-tion of the agricultural and industrial sectors. The basic structural weak-nesses in agriculture and some branches of industry are their low level ofproductivity, which is significantly below the EEC average. In agriculture,this is the result of small and fragmented land holdings impeding the adoptionof modern technology, lack of appropriate marketing facilities, and an insuf-ficiently developed network of cooperatives. Although larger industrialunits, which are capital-intensive and have grown over the last few years,compare very well with their counterparts in the EEC countries, a largesegment of the industrial sector consisting of small-scale family-owned enter-prises, suffers from a low level of productivity and has limited specializa-tion, vertical integration, and modern technology. Hence the Government willhave to reorient its policies and investment strategy to overcome some ofthese deficiencies. Under the draft Plan, the authorities intend to investDr. 47.5 billion 1/ in agriculture. The program aims for the creation of moreviable, more mechanized and more efficiently organized agricultural holdings
1/ In constant 1970 prices, as in the draft Plan document.
- iv -
through land consolidation, the promotion of "group" exploitation and coopera-tive marketing organization, and the general improvement of extension services.In addition, the Government has made a provisional estimate of Dr. 18.0 bil-lion', for the period 1977-1985, in respect of investment required to bringthe agricultural sector in line with the Community's standards. The projectedexpenditure relates to storage and marketing facilities, quality control,slaughterhouses and certain institutional changes. To prepare the industrialsector for full EEC membership, the Government will need to promote its inter-national competitiveness through a revised system of industrial developmentincentives and through public investment in economic infrastructure.
ix. The balance of trade is expected to deteriorate, at least in theshort run, as a result of full EEC membership. However, the extent of thedeterioration will depend on the transitional arrangement to be negotiatedfor the elimination of the existing protective tariffs. The short-runnegative effect on the trade balance is unlikely to be appreciably offset byan immediate increase in invisible receipts, unless employment opportunitiesin the Community for Greeks improve dramatically. On the other hand, thecapital account of the Greek balance of payments can be expected to improve,because of a substantial net transfer of various EEC funds to the local budgetafter Greece's membership is ratified by all the parliaments of EEC membercountries. Recent estimates indicate that total receipts by Greece from theCommunity after that time, possibly 1981, on account of the agricultural,regional, social and research funds could exceed Greece's contribution to theEEC budget by approximately $340 million per year. However, nearly 70 percentof this net estimated transfer will be tied to Greece's development programand will thus depend on the Government's ability to formulate, submit andimplement an increasing number of development projects.
x. The Bank's assessment indicates that GDP growth at about the rateattained in 1976 is feasible, on average, for the period 1977-1980, providedinvestment maintains an average annual growth rate of about 8 percent overthat period. This will be possible, if domestic savings as a share of GDPrise to about 20 percent by 1980 (implying a consumption growth of less than5 percent average per year). This growth will be consistent with a currentaccount deficit of around $1.4 billion in 1980. Even assuming a very gradualtapering of inflows of foreign exchange deposits, the Government will have toborrow, in gross terms, an average of about $800 millon a year during 1977-1980 (an average net borrowing of about $300 million a year) to finance thedeficit as well as to allow for the increased amortization payments on previouscommercial borrowings on hard terms, and improvement in reserves. The debtservicing will not constitute a heavy burden since the exterrnal pu'lic debtservice ratio will be around 11 percent in 1980, and about 1516 percentinclusive of private external debt service. However, in v-iew of Greece'slimited access to concessionary finance from bilateral and multilateralsources, the Government will have to continue to borrow on commercial terms
1/ In constant 1970 prices, as in the draft Plan documents
- v -
from European credit markets. Of course, a part of this borrowing, in futurepossibly after 1981, will come from the various funds of the EEC. Neverthe-less it is desirable for Greece to obtain as much of the capital needs, aspossible, in the form of long-term funds, at least during the transitionalphase of its membership in the EEC.
I
I. INTRODUCTION
1. The last economic report (1203-GR) was issued in September 1976.A mission visited Greece in June 1977 to review current developments, andits findings are presented in this memorandum.
2. The past year has seen a continuation of the Government's effortsto forge a sound basis for growth of the Greek economy, amidst introductionof some monetary measures to cope with immediate inflationary pressures. Whenthe democratic government assumed power in July 1974, the economy was in re-cession, and faced with strong inflationary pressures and increasing balanceof payments deficits. Inflation exceeded 30 percent in 1973 and was runningat an annual rate close to 18 percent in the first half of 1974.
3. Against this background, the Government pursued economic policiesmainly aimed at stabilizing the economy and laying the basis for more rapidgrowth in the immediate future. The traditionally low-key public sector,played a key role in stimulating the economy. This was accompanied by anexpansive monetary and credit policy, which was designed to accommodate therecovery within the general guidelines of reducing the high rate of inflationand maintaining external balance. However in 1976, the acceleration of ex-pansionary fiscal policy has generated additional inflationary pressures.
4. The recent success in maintaining the current account deficit of thebalance of payments at a reasonable level, is largely the result of a sizeableincrease in invisibles receipts which covered about two-thirds of the tradedeficit in 1976. The merchandise trade deficit reached a total of $3.3 bil-lion in 1976, as against $3.0 billion in 1975. Merchandise exports in recentyears (1974-1976) accounted for, on an average, about 40 percent of merchan-dise imports. Moreover, the structure of imports, which is biased in favorof consumer goods as against capital goods and raw materials, is not orientedtowards promoting long-run economic development.
5. The economic growth in the last two years was accompanied by sluggishprivate investment (in fact investment in manufacturing declined). This waspossible since there was room for utilization of capacity following the 1974recession. But in future there is a great need to step up investment, espe-cially in industry. The bulk of investment in recent years was undertaken inresidential construction, which is not conducive to long-run self-sustainednon-inflationary growth.
6. Besides evaluating current economic developments and prospects, thememorandum focuses on two issues critically germane to the long-run developmentof the economy: (i) Greece's entry in the European Economic Community (EEC),and (ii) the medium-term strategy incorporated in the Five-Year DevelopmentPlan (1976-1980).
-2-
11. RECENT ECONOMIC DEVELOPMENTS
A. Output and Income Growth
7. The economy rebounded quickly from its stagflation phase in 1974,mainly as a result of the expansionary monetary and fiscal policies of theGovernment. Recovery, which began in the early months of 1975, has beensustained. GDP at constant prices, after a decline of 1.8 percent in 1974,rose by 4.5 percent in 1975 and 5.4 percent in 1976 (see Table I below).
Table 1: GDP AND GNP GROWTH(Dr. billion at constant 1970 prices)
1973 1974 1975 1976
1. GDP at Factor Cost 329.2 323.3 337.9 356.0
Agriculture 51.2 53.8 56.3 55.4Industry 114.3 101.9 107.3 116.8Services 163.7 167.6 174.3 183.8
2. Indirect Taxes Less Subsidies 44.9 37.2 44.9 49.0
3. GDP at Market Prices 374.1 360.5 382.8 405.0
4. Net Factor Income from Abroad 9.8 8.8 7.6 8.9
5. GNP at Market Prices 383.9 369.3 390.4 413.9
Consumption 292.1 299.0 322.7 339.2
Private 247.4 248.9 266.5 281.2Public 44.7 50.1 56.2 58.0
Gross Fixed Investment 100.1 74.5 74.7 79.5
Private 72.2 52.3 53.6 57.9Public 27.9 22.2 21.1 21.6
Growth Rates
GDP at Factor Cost 8.2 -1.8 4.5 5.4GDP at Market Prices 7.3 -3.6 6.2 5.8GNP at Market Prices 7.5 -3.8 5.7 6.0
Source: Ministry of Coordination.
- 3 -
In other words, due to the catching up involved in terms of the 1974 decline,GDP in 1975 was only about 2.7 percent higher than what it was in 1973 and in1976, it was only 8.1 percent higher than in 1973. This result was achieveddespite weak performance by the agricultural sector where output declined by1.5 percent in 1976, mainly due to unfavorable climatic conditions whichaffected production of cotton, olive oil and currants. The industrial sectorwas the main engine for higher growth in 1976, with an increase of 8.8 percentover 1975 (5.2 percent in 1975). The rise in real disposable income reviveddomestic demand for manufactured products, especially final industrial goodsand construction materials. Increased activity in mining and quarrying alsocontributed significantly to last year's growth (6.0 percent), while thegrowth rate in the construction sector increased from 4.3 percent in 1975 to5.5 percent in 1976 following a decline of over 30 percent in 1974. There wasalso a rapid increase in value added in the services sector (6 percent),particularly in transport and communications.
8. The main domestic forces of expansion in 1975 and 1976 were theincreases in public expenditure, private consumption and residential construc-tion. Private consumption increased by 5.5 percent in 1976 (7 percent in1975) largely stimulated by the growth of personal disposable income follow-ing large increases in wages and salaries and in incomes of the self-employed,particularly those engaged in intermediate trades and services. Growthof public expenditure, on the other hand, slowed down in 1976 (3.2 percent)after a substantial increase in 1975 (12.2 percent) but the share of publicconsumption to GNP still remained high (14 percent in 1976). This was thedirect outcome of the expansionary fiscal policy pursued by the Governmentto stimulate the economy. The volume of gross fixed investment which haddropped by about 26 percent in 1974 and remained unchanged in 1975, increasedin 1976 by 6.4 percent over the 1975 level. As a result, investment in 1976was still significantly below its peak 1973 level of Dr. 100.1 billion. Theincrease in gross fixed investment in the last two years was mainly in thearea of residential construction which recorded a growth rate of 7.8 percentin 1976 (21.3 percent in 1975). It might be noted that prior to 1974, rapidgrowth of residential construction was the chief factor fuelling the infla-tionary spiral in Greece. While construction increased, investment in manu-facturing declined by 2.3 percent in 1976 (-11.5 percent in 1975). Thereasons for the decline of investment in manufacturing can be attributed tothe following factors: (a) excess capacity subsequent to the recession of1974; (b) uncertainty regarding future world economic conditions; and (c)investors awaiting the outcome of the negotiations for Greece's entry intothe EEC, and the Government's proposed simplified industrial incentive scheme.
B. Employment
9. The recovery of economic activity in 1976 was reflected in increasednon-agricultural employment by about 7.8 percent, while the number of thosedischarged 1 om work decreased by 8.1 percent. Industrial employment in par-ticular, began to rise as of the third quarter of 1975. National Statistical
-4-
Service data show that employment in large-scale manufacturing increased by6.1 percent in 1976, compared with 0.8 percent and 1.1 percent increases for1975 and 1974 respectively. Although net immigration was positive for asecond year in succession (13,000 persons in 1976, 14,000 persons in 1975) onaccount of growing unemployment in West Germany, its impact on the domesticlabor market has been insignificant since most of these repatriates eitherengaged themselves in rural activities or became self-employed; hence, theirinflux has not, up to now, raised the unemployment rate.
C. Balance of Payments and External Debt
Current Account
10. The balance of payments showed a steady improvement over the lasttwo years with the deficit on current account stabilizing at a level close to$1.1 billion (4.8 percent of GNP in 1976 as against 5.2 percent in 1975). Thisimprovement was the result of the invisibles surplus, which increased to $2.24billion in 1976 and covered about 67 percent of the trade deficit (see Table 2below). The terms of trade deteriorated by 2 percent only, compared with a 7percent deterioration during 1975. The picture is summarized in Table 2 below.
Table 2: CURRENT ACCOUNT BALANCE OF PAYMENTS($ million at current prices)
1974 1975 1976
1. Trade Balance -2,888.1 -3,050.2 -3,328.5
Exports 1,802.9 2,029.4 2,227.5Imports -4,691.0 -5,079.6 -5,556.0
2. Services (net) 1,675.5 1,961.8 2,237.0
Shipping (net) 867.1 845.0 914.1Tourism (net) 318.5 488.8 673.0Workers' Remittances (net) 673.5 783.0 803.2Interest, Dividends and -97.2 -100.0 -111.1
Profits (net) -86.4 -55.0 042.2Other Services
3. Balance on Current A/C -1,212.6 -1,088.4 -1,091.5
As % of GNP at Market Prices 6.2 5.2 4.8
Source: Bank of Greece.
- 5 -
11. Despite an upswing in international trade and the improved economicconditions in Greece's major trading partners, total export receipts grew by9.8 percent in 1976 compared to 12.6 percent in 1975. In volume terms, growthof exports was 6 percent in 1976 and 10 percent in 1975. The disappointingperformance of Greece's agricultural sector, a combined result of adverseweather and less favorable market conditions for certain agricultural exports,was mainly responsible for the low growth rate of total export receipts.While exports of cereals, currants, vegetables and fruit preserves increasedat a satisfactory rate, receipts from the exports of sultanas, olives, oliveoil and citrus fruits remained constant or decreased. Exports of other fruits,notably peaches, were reduced sharply compared with 1975, when fruit crops inthe EEC, especially France, were badly affected by adverse weather conditions.Following a temporary reduction in 1975, exports of raw materials and semi-finished products returned to their 1974 levels, while total receipts fromores, minerals and tobacco remained constant. Exports of metals and metalproducts, chemicals and cement also remained stagnant due to an increasein domestic demand and lower world prices. Foreign exchange earnings fromexports of manufactured goods, especially textiles and shoes, continued togrow at a high rate (18.1 percent in 1976) mainly due to Greece's comparativeadvantage with respect to labor costs. As a result, the share of manufacturedexports to total exports has increased from 5 percent in 1960, to 52 percentin 1976.
12. Merchandise imports increased by 9.4 percent in nominal terms in1976 (8.3 percent in 1975). Although an acceleration of import growth wasexpected due to the higher overall growth rate of the domestic economy, im-ports of raw materials and various capital goods were only slightly higherthan during 1975. Imports of consumer goods, notably foodstuffs (meat,coffee) and manufactured articles (textiles, private motor vehicles) howeverincreased between 10-20 percent, due to the rising incomes of those groupswho have a high marginal propensity to consume such goods. The slow growthof imports of capital goods and raw materials should be attributed to thelow level of investment expenditure in 1976, and the further liquidation ofstocks accumulated in previous years. The only exception was an increasein imports of construction materials, amounting to 25 percent, reflectingthe continued high, but not fully desirable level of activity in the resi-dential construction sector. Imports of petroleum products which fell in1975, increased by over 20 percent to approximately $1.0 billion, partly dueto stockpiling in anticipation of the OPEC decision to increase crude oilprices. Overall, growth of imports in volume terms was 3.2 percent in 1976after a period of stagnation in 1975.
13. The geographical distribution of Greek foreign trade underwent onlyslight changes during this period. In case of imports, the United States,the centrally-planned economies and the category "rest of the world", mainlycomprising developing countries and the Middle East, acquired greater rela-tive importance as exporters to Greece, at the expense of the EuropeanEconomic Community. With respect to Greece's exports, there was an increasein the share taken by the EEC and the countries of the Middle East. Exportsto the EEC mainly consisted of foodstuffs (fruits and preserve vegetables)
-6-
and manufactured articles (textiles, yarns, antiknock compound, aluminum),while those to the Middle East comprised cement, fruits, vegetables andtrucks assembled in Greece. EEC's total share in Greece's exports has beenapproximately 38 percent during the previous three years, while its share inGreece's imports was around 45 percent. The share of Greek exports taken bythe Middle Eastern countries increased from less than 6 percent in 1971 toover 21 percent in 1976.
14. As in previous years, net invisible earnings in 1976 constituted amajor source of foreign exchange to the economy and covered about two-thirdsof the trade deficit. The surplus on invisibles increased from $1.96 billionin 1975 to $2.24 billion in 1976 (Table 2). Receipts from shipping (includingearnings of Greek seamen and shipowners), which had fallen from $867 millionin 1974 to $845 million in 1975, increased by 11 percent to reach $941 millionin 1976. This was the result of improved conditions in the oil and dry bulkcargo trades during the second half of the year, on account of increase inpetroleum and other imports by the OECD member countries, especially Japan.Earnings by the tourism sector increased less rapidly as in the previous yeardespite an increase of 40 percent in the number of tourist arrivals, becauseof a drop of 5.5 percent in the per capita tourist expenditure. As a resultof the continuing high level of unemployment in Western Europe, remittances ofemigrants and Greek workers abroad increased only marginally by 2.6 percent,although they still remained at a high absolute level ($803.2 million) in1976. This was partly offset by a substantial repatriation of savings byreturning workers which were deposited in foreign exchange accounts with Greekcommercial banks. 1/ Total invisible receipts in 1976 were 11 percent higherthan in 1975, while total invisible payments only slightly exceeded thepayments made in the previous year. The deficit on current account amountedto $1,091.5 million which was only 0.3 percent higher than the deficit of$1,088.4 million recorded in 1975.
Capital Account and External Debt
15. During 1976, the Greek economy experienced a considerable inflowof private capital other than borrowing 2/ amounting to $912 million ($522.9million in 1975: Table 3 on page 7). Nearly 60 percent of this inflow wasin the form of foreign exchange deposits, made by Greeks living abroad, whichamounted to $545 million ($185 million in 1975). Part of this considerableincrease should be attributed to the very favorable terms granted to depositorsof foreign exchange. In addition to a high interest rate of 11 percent, theyinclude special mortgage facilities and exemption of transfer tax if the fundsare converted into drachma and invested in real estate. A substantial part
1/ These are recorded in the capital account and subsequently recorded as aninvisible receipt only after a deposit is converted into drachma.
2/ Sum of "direct investment, real estate investment and foreign exchangedeposits" in Table 3.
- 7 -
of the increase in deposits also consisted of repatriated savings of migrantworkers returning to Greece due to the reduced employment opportunitiesabroad. In addition, there was an inflow of $360 million mainly for purchasesof real estate in Greece. The combined inflow from these two sources financedmore than 80 percent of the current account deficit in 1976 as against about47 percent in 1975.
Table 3: BALANCE OF PAYMENTS - CAPITAL ACCOUNT /1($ million at current prices)
1974 1975 1976
1. Balance on Current A/C -1,212.6 -1,088.4 -1,091.5
2. Net Private Capital 688.5 848.3 1,194.0
Gross Private Capital 770.7 946.2 1,258.4of which:
Direct Investment 42.7 17.0 6.6Real Estate Investment 250.0 320.9 360.6Foreign Exchange Deposits 195.5 185.0 545.2Private Borrowing 282.5 423.3 346.0
Amortization -82.2 -97.9 -64.4
3. Net Public Borrowing 333.4 295.9 -100.7
Gross Public Borrowing 431.8 542.4 182.9Amortization -98.4 -246.5 -283.6
4. IMF (Net) 42.9 186.0 67.4
5. Changes in Reserves, SDRsand Clearing Accounts 83.8 -25.6 59.8
6. Errors and Omissions 64.0 -216.2 -129.0
/1 The balance of payments statistics of aggregate capital flow and externaldebt are different from those prepared by the IBRD due to differences incoverage.
Source: Bank of Greece.
16. Gross private borrowing declined from $424.3 million in 1975 to $346million in 1976, due to a substantial reduction in suppliers' credits from $230in 1975 to only $3.8 million in 1976. Public borrowing was also substantiallyreduced in 1976, with gross public borrowing, excluding Central Bank borrowing
-8
from the IMF, amounting to $182.9 ($542.4 million in 1975). Borrowing bypublic enterprises amounted to $77 million and consisted of one loan from theEurocredit market to the Public Power Corporation. Borrowing by the CentralGovernment was at a comparable level to the previous year and stood at $106million at the end of 1976, most of which were borrowed at the Eurodollarmarket. Besides drawings from the IMF (a total of $67.4 million under thecompensatory financing facility), borrowing by the Bank of Greece was nilcompared with $250 million and $420 million in 1974 and 1975 respectively.This was largely due to the substantial inflows of foreign exchange depositsand real estate investment made by Greeks living abroad. Foreign exchangereserves decreased by $6 million and stood at $905 million on December 31,1976, equivalent to about two months of imports.
17. In other words, because of the substantial private capital inflowmentioned above, Greece in 1976 was not forced to borrow as heavily on hardterms in the European markets, as it has had to in preceding years to coverthe current account deficit. However, once the surge of such an inflow abatesin a year or two, as it has in other countries which experienced similartrends, Greece will be faced with the task of borrowing heavily to meet itscontinuing current account deficits. Meanwhile in 1976 due to negative netpublic borrowing, Greece's public external debt outstanding and disbursed atthe end of 1976 stood at $2.38 billion (excluding $0.3 billion of IMF borrow-ing) as against $2.55 billion and $2.04 billion at the end of 1975 and 1974respectively. Because of the substantial borrowing from commercial sourcesduring the recent past, public debt (including publicly guaranteed privatedebt) service payments increased from $330 million in 1974 and $444 millionin 1975 to $487 million in 1976. The debt service ratio, defined as publicdebt service payments as a percentage of exports of good and non-factorservices, fell from 11.5 percent in 1975 to 11.2 percent in 1976. 1/
18. Since March 1975, the Greek drachma has been pegged to a weightedbasket of currencies of Greece's major trading partners. In July 1975, thecomposition of the basket was changed by removing the US dollar and givingpredominant weight to Western European currencies. The effective exchangerate of the drachma has depreciated gradually by 8.8 percent in 1975 and 6.7percent in 1976 to a level that represented at the end of December 1976 aneffective depreciation of 28.2 percent over the period 1970-1976.
D. Public Sector Developments
Central Government Finances
19. The Central Government current budget in the last two years pro-vided a small surplus, despite an unprecedented increase in revenues. This
1/ If workers' remittances are added to the exports of goods and non-factorservices in the denominator then the debt service ratio falls to 9.5 per-cent in both 1975 and 1976. If private sector borrowings are added thenthe total external debt service ratio would increase by about 4 percentagepoints in 1976.
- 9 -
situation can be attributed to significantly increased current expenditureson defense and Government salaries. Revenues, especially tax receipts, con-tinued to increase at the rapid rate of 26.7 percent in 1976, with the ratioof tax revenues to GNP rising from 17.6 percent in 1975 to 19.4 percent in 1976(Table 4). H'- ar, a substantial portion of this increase was the result ofa once-for-al ^ on profits and outstanding credit balances which yieldedDr. 11 billion representing 7 percent of total tax revenues. Revenues fromindirect taxes grew at a slightly lower rate compared with 1975 due to a 50percent reduction in the growth rate of customs duty receipts mainly as aresult of the gradual tariff reduction in accordance with the provisions ofthe EEC Association Agreement. During the last three years along with thisincrease in revenues, there was a tremendous upsurge in current expenditureswhich grew by more than 123 percent during the period 1973-1976 as against 54percent in the period 1970-1973. The main components of increased Governmentexpenditures were high outlays on defense and rapid increases in remunerationand pensions following the adjustment of wages and salaries of civil servants.Defense expenditures rose by an annual average rate of 46 percent in thethree-year period 1974-1976, and constituted 5.3 percent of GNP in 1976 (2.8percent in 1973) and 26 percent of current expenditures. Wages and salariesincreased by 22.8 percent in 1976 following the Government's aim to maintainthe expansionary trend of fiscal policy to make up for the depressed salariesprevailing under the military regime.
20. As a result of the small current account surplus, Central Governmentinvestment in 1976 has been largely financed by borrowings from the CentralBank with insignificant (Dr. I billion) external borrowing. Central Governmentinvestment, however, has been playing a pivotal role in stimulating the economy,especially meeting the social needs such as education, providing basic infra-structure and modernizing the agriculture sector. In 1976 investment reacheda total of Dr. 40.2 billion with a growth of about 24 percent over 1975.Transportation continued to absorb the largest proportion (18 percent) of theinvestment budget followed by the education (14.2 percent) and agriculture(14 percent), largely irrigation, sectors.
Fiscal Operations of Other Public Sector Agencies
21.. Public enterprises' investment 1/ fell from Dr. 19.9 billion in 1974to Dr. 15.3 billion in 1976, due to: (a) a cut in their allocations, espe-cially those with high import content to contain rising deficits in the balanceof payments, and (b) emergence of sizeable excess capacity caused by sluggishdemand. Also more emphasis was put towards their self-financing capabilities,and as a result, 52 percent of their investments were financed by their cur-rent account surplus in 1976 (21 percent in 1974).
1/ Investment expenditures of the Public Power Corporation, Hellenic Tele-communications Company and Hellenic Railways Organization account formore than 94 percent of total public enterprises' investment.
Table 4: SUMMARY OF CENTRAL GOVERNMENT OPERATIONS
Dr, Billions Percent Change _hare of GNP %
1975 1976 1977 1975 1976 1977 -/ 1975 1976 1977
Revenues 137.2 173.9 200.0 31.4 26.7 15.0 19.8 20.9 20.9
Direct Taxes 29.6 47.9 48.2 4.2 61.8 0.6 4.3 5.8 5.0
Indirect Taxes 91.1 113.0 136.8 33.0 24.0 21.0 13.2 13.6 14.3
Others 16.5 13.0 15.0 120.0 -7.0 15.4 2.3 1.6 1.6
Current Expenditures 132.1 165.8 192.0 31.8 25.5 15.8 19.1 20.0 20.1
Defense 34.3 43.7 43.7 53.1 27.4 0.0 5.0 5.3 4.6
Others 97.8 122.1 148.3 25.7 24.8 21.5 14.1 14.7 15.5
Current Account Surplus 5.1 8.1 8.0 21.4 58.8 -1.2 0.7 1.0 0.8
Investment Expenditures 32.5 40.2 45.0 40.0 23.7 11.9 4.7 4.8 4.7
Capital Revenues 1.1 0.8 1.3 10.0 -17.3 62.5 0.2 0.1 0.1
Amortization 5.1 5.6 8.0 21.4 9.8 42.9 0.7 0.7 0.8
Total Financing Requirements 1] 31.4 36.9 43.7 40.8 17.5 18.4 4.5 4.4 4.6
Domestic Borrowing 16.0 35.9 31.7 -6.4 124.4 -11.7 2.3 4.3 3.3
External Borrowing 15.4 1.0 12.0 _ 2.2 0.1 1.3
a/ Budget 1977
Including amortizations
Source: Tables 5.2 and 5.5 in the Statistical Annex
- 11 -
22. The Consumer Goods Account and the Tobacco, Sultana and CurrantsAccounts 1/ have been used by the Government to maintain farmers' incomes andessential consumer goods prices (subsidy to essential imports like meat andcrude oil are effected through these accounts). The operational deficit ofthese accounts has grown considerably in recent years, and in 1976, it reachedDr. 19.0 billion (growth of over 200 percent). The deficit, which is financedentirely through the Bank of Greece, constitutes a large part (30 percent in1976) of the consolidated public sector deficit. Over and above these, arethe input subsidies, especially subsidization of interest rates for loanschannelled to the agricultural sector through the Agriculture Bank of Greece.While no precise estimate of the total quantum of these subsidies each yearis easily available, it would appear that the quantum is fairly sizeable, andthis is also financed through the Bank of Greece.
23. Local authorities budgets have been traditionally fairly insignifi-cant in Greece (in 1976 their contributions amounted to merely 5 percent ofCentral Government revenues). However, their future role is going to be moreimportant since there is a marked emphasis on regional development. The de-clining surplus of their budget is indicative of the growing role of theseauthorities in generating more economic activity and increasing job oppor-tunities.
Consolidated Public Sector Finances and Overall Deficit 2/
24. The overall deficit of the consolidated public sector in 1976amounted to Dr. 55.5 billion, equal to 6.7 percent of GNP, as against a defi-cit of Dr. 39.3 billion in 1975, representing 5.7 percent of GNP (Table 5.9of Statistical Annex). Nearly 70 percent of this was the result of CentralGovernment investments, while subsidies provided by the Government to maintainfarm incomes and stabilize essential consumer good prices largely accountedfor the rest. This figure is actually significantly higher, since because oflack of reliable data, it does not reflect the quantum spent on subsidizingespecially agricultural interest rates. This overall deficit was entirelyfinanced from domestic sources, through the sale of treasury bills and directborrowing from the Central Bank, with foreign borrowing covering only amortiza-tions. To bring inflation under control, it will be necessary not only toreduce the public sector borrowing requirements (including those for price andinterest rate subsidization), but also to resort to methods of financing whichwill minimize the expansionary effects on the monetary base. This entails agradual reduction of the public sector's dependence on the banking system forthe financing of its deficits, and a greater reliance by the Government andthe public enterprises on the domestic capital market to raise a substantial
1/ These accounts have been used to implement incomes policy. By buyingthe produce of the farmers at determined prices and selling them to con-sumers at lower prices, the Government stabilized both farmers' incomeand consumers' real purchasing power.
2/ Overall deficit encompasses both current and capital budgets. Conso-lidated public sector comprises Central Government, Public Enterprises,Consumer Goods Account and Tobacco, Sultanas and Currants Accounts.
- 12 -
part of their borrowing requirements. Besides this, since price and interestrate subsidization in the agricultural sector would lead to economic distor-tions as well as misallocation of scarce resources, a proper study evaluatingits overall economic benefits or otherwise to Greece and how subsid -be systematically rationalized to gradually remove such distortions, might bewell undertaken in the near future.
E. Monetary and Price Developments
25. Monetary policy since 1975, has been expansionary to promote rapidrecovery from the 1974 recession. However, since late 1976, there has beengrowing concern about maintaining price stability and this trend is expectedto continue in 1977.
26. Money supply increased by 24.3 percent in 1976 compared with anincrease of only 15.6 percent in 1975 (Table 6.1 of the Statistical Annex).Among the components of money supply, sight deposits increased by 29.5 percentwhile currency in circulation increased by 22.1 percent. The acceleration inthe rate of growth of sight deposits in 1974, was entirely due to a temporaryincrease in deposits of public enterprises and entities caused by the PublicPower Corporation's placement of its foreign loans proceeds in current accounts.Growth of quasi-money was of the same order, 24 percent, following a year ofvery rapid growth (30 percent in 1975) mainly due to a sizeable growth insavings deposits. The growth of money and quasi-money combined (total liquidassets) was 24 percent, thus registering a high rate for the second year insuccession.
27. The increase in money supply in 1976 was primarily caused by thepublic sector and, to a lesser extent, by the private sector (Table 5).
Table 5: FACTORS AFFECTING MONEY SUPPLY(billion drachmae)
1975 1976
Changes in Money Supply 17.4 31.1
Public Sector 38.2 39.9Private Sector -3.7 12.7Foreign Sector -26.6 -28.7Other Items 9.5 7.2
Source: Bank of Greece
This was the direct result of a large Central Government investment programfinanced almost entirely by the banking system. In 1976, the private sectoralso exercised an expansionary effect on the money supply, contrary to a con-tractionary impact in 1975, mainly because of a high rate of credit expansionby commercial banks (about 35 percent) while the rate of inflow of private
- 13 -
deposits into the banking system decelerated. Credit expansion to the pri-vate sector was facilitated by high commercial bank liquidity caused by,among other things, the increase in foreign exchange deposits. The foreignsector--excluding the public sector borrowing from abroad and the change inoutstanding balance of foreign exchange deposits--had a contractionary effecton money supply.
28. The monetary authorities displayed great concern at the end of the1976 to bring down credit expansion from the high rate (24.4 percent) witnessedthat year. The principal restrictive measures affecting credit developmentin 1977 are: (a) imposition of seasonal reserve requirements; (b) compulsorycommercial bank reserves with the Bank of Greece and investments in treasurybills and government bonds which were increased and extended to foreignexchange deposits as well; (c) as of November 1976, interest rates on drachmadeposits were reduced by half a percentage point; (d) beginning 1977, furtherchanges in interest rates occurred in the following area: credits up by 1/2percent, savings deposits in foreign exchange down by 1/2 percent and treasurybills up by 1.5 percent.
29. However, mobilization of long-term resources for promoting invest-ments, still remains a problem. To promote and implement major investment inGreece, especially whose size and financial requirements would normally beconsidered too large by individual investors, the Government organized a con-sortium of banks (FLEVME) under the direction of the Currency Committee andthe Bank of Greece and consisting of four banks (the National Mortgage Bank,NIBID, Hellenic Industrial Development Bank and the National Bank of Greece).Although the consortium will participate in projects, one of its functionswill be to attract additional investors, both from Greece and abroad., Fourprojects, in total amounting to $1 billion, are currently under considera-tion: a petrochemical complex (total cost $640 million), an alumina plant($300 million) to convert local bauxite into alumina, Masolongi salt works($10 million) and a ferro/chrome plant ($25 million). The Government alsoattempted to create favorable conditions for the financing of firms locatedin less developed regions and to extend long-term bank loans to firms toassist in the payments of the "special tax levy" in accordance with the pro-vision of Law 257/1976. Also, the ceiling on loans to firms in small-scaleindustry was increased from Dr. 500,000 to Dr. 1 million for the purchase ofnew premises.
30. Unlike other countries, the interest rate mechanism has tradition-ally played little role as an instrument for maintaining monetary stabilityor influencing resource mobilization or allocation overall in Greece. Rather,its role has been traditionally geared to medium and long-term developmentmanagement and to using it as a tool for stimulating and directing investmentsinto sectors which the Government has predetermined as needing development.As a result, these rates do not necessarily reflect either market conditionsor the availability of capital. Especially since 1974, with the high ratesof inflation, there have been negative real interest rates in Greece. However,with the curtailment of the inflation rate from about 30 percent in 1974 toabout 12 percent in 1976, some of these regulated rates have moved closer topositive real rates of interest. The interest rate structure has been deter-mined since the Spring of 1973 by the Currency Committee, which establishes
- 14 -
maximum rates for each type of deposit and credit (Tables 6.5 and 6.7 ofthe Statistical Annex). The Bank of Greece uses a combination of differentprimary reserve requirements, adjustments in the Bank of Greece rediscountrate and concomitant adjustments upwards or downwards of interest rates onvarious types of deposits. As of January 1977, (a) rediscount rate is 11percent, (b) that on saving deposits ranges from 7 to 8.5 percent, (c) thehighest lending rate is 14 percent per annum for imports and domestic tradeand, (d) the lowest lending rate is 3.5 percent for long-term loans for on-farm irrigation works and livestock development. The maximum interest ratefor long-term loans to industry is 10.5 percent per annum, while that chargedfor working capital is 12 percent per annum. Except for the above-mentionedtwo specific agricultural items, the interest rate for agricultural lendingranges from 5 percent for farmers' housing to 9 percent for loans to privateagroindustries, and averages about 7 percent. In addition to the interestcharged, each agricultural loan is subject to a lump sum commission of from0.25 to 1.0 percent, which raises the effective cost of capital to the bor-rower. While the rates for other sectors have hardly changed since 1974,there has been a small, but gradual, increase in agricultural rates and asmall drop in that for industry. In this background and looking towardsthe future, it might be worthwhile for the Government to undertake a studyfor developing a financial market and promoting a financialization of savingson a rational basis in Greece, which would include a review of the adequacyof rates on both deposits and lending.
31. The rate of inflation in 1976 of 11.7 percent was lower than the15.7 percent witnessed in 1975. This was the result of the introduction ofsome restrictive monetary measures, coupled with successful control of theprices of certain essential commodities (incomes policy). The authoritieshave set a target of bringing it down further to 10 percent in 1977, throughmore restrictive monetary policies. However, the large size of the publicsector deficit and the continued large inflow of foreign exchange depositsmay result in a higher rate of inflation in 1977.
F. Prospects for 1977
32. On the basis of the Government's preliminary estimates, it appearsthat the growth rate of GDP in 1977 will be about 4.1 percent, similar to thatattained in 1975, but lower than the level achieved in 1976. This decline inthe GDP growth rate reflects a decline in the growth rate of the secondarysector (down to 5.2 percent from 8.8 percent in 1976), with agricultureremaining more or less stagnant as a result of the recent drought which hasaffected cereal production.
33. The major concern of the policv-makers continues to be the controlof inflation. The authorities intend to curb wage increases, money supplyand credit expansion to a level consistent with about 10 percent annual rateof inflation combined with a reasonable GDP growth without a noticeable dete-rioration in the balance of payments. The targets allow 15 percent growthin money supply as against about 24 percent in 1976, while the rate of expan-sion of credit to the private sector is to be limited to 20 percent growth
- 15 -
compared to 24.8 percent in 1976. Average earnings are expected to grow byless than 15 percent, about 3 percentage points below last year. The indica-tions, based on developments in the first half of 1977, point to an inflationrate higher than envisaged.
34. The prospects are that the balance of payments will show a deficitof the same order of magnitude as in 1976. A large adverse trade balance isexpected once again to be offset by high invisible surpluses, especially asregards tourism, shipping and workers' remittances. As in 1976, the currentaccount deficit is expected to be mostly financed by inflow of private capitalin the form of foreign exchange deposits and real estate investment.
35. Fiscal policy continues to be expansionary, with the consolidatedpublic sector deficit expected to rise to Dr. 62.2 billion. The deficitessentially will come from the investment expenditures of the Central Gov-ernment (Dr. 45.0 billion) and the subsidy provided to the Consumer GoodsAccount (Dr. 14.1 billion).
III. DEVELOPMENT ISSUES AND MEDIUM-TERM PROSPECTS
36. In this section certain economic issues confronting the Governmentin the immediate future and over the longer run are considered. The analysishinges on two malor developments facing the Greek economy: (i) Greece's mem-bership in the EEC; and (ii) the strategy for long-term development envisagedin the Five Year Development Plan (1976-1980).
A. Development Issues
37. Despite Greece's commendable growth performance during the last twoyears, achieved with manageable external deficits and a relative containmentof the rate of inflation, the economy still faces some serious, though notinsurmountable, economic problems in the medium-term. These are discussedin subsequent paragraphs.
(a) Long-Term Development Policy
38. Though economic policies in the last few years coped with most imme-diate problems relatively efficiently, long-term considerations seem to havereceived much less attention. The preliminary draft of the 1976-1980 Plandoes not appear to take fully into consideration either the entire economicimplications of EEC membership which would be felt in the period subsequentto the Plan's time horizon, or the investments and development strategiesnecessary to prepare Greece prior to its formal entry into the EEC, so that itcan begin to derive substantial benefits as soon as the entry is formalized.These, as well as long-term considerations, are critical, especially in viewof the fact that Greece will not only have to correct some basic structuralimbalances in its economy and its economic policies (eg. subsidies) to be aneffective member of the EEC, but it will have to reorient considerable in-vestment in infrastructure, especially in the agriculture sector, power and
- 16 -
transport sectors to get on a par, as EEC demands, with the facilities avail-able in other EEC countries. Besides, it also needs to modernize the existingindustrial structure which suffers, in comparison with EEC member countries,from a lower level of productivity.
(b) Inflation - Monetary and Fiscal Policies
39. Although cost push elements may have been important in explaininginflation in Greece in the last two years, it is important to recognize thatan equal share has to be borne by certain demand pull influences. This is espe-cially true for the expansionary impact of recent fiscal policy. The Govern-ment has to reduce the size of the overall deficit of the consolidated publicsector (6.7 percent of GNP in 1976), by imposing austerity on current expendi-tures on defense and wages and salaries, besides relying more on public sectorsavings to finance investment instead of through Central Bank borrowing.Also, an attempt should be made to mop up excess liquidity, by resorting todirect financing from the public through the sale of bonds and treasury bills.The tax receipts, which mainly come from indirect taxes (about two-thirds),have so far not been effective instruments to contain inflation. One of themajor reasons behind the relatively small size of direct taxes to total taxes(24 percent average during the period 1973-1976), has also been large scaletax-avoidance and evasion. The Government has been taking measures to combattax avoidance, by gradually raising the fines and penalties; but this hasnot been very successful so far. Greater efforts are needed to increase andstrengthen the tax base by progressively increasing the share of direct taxes,pari passu-with substantially improved tax administration.
(c) Level and Structure of Investment
40. The respectable GDP growth achieved in the last two years after adecline in 1974, was not the result of large new investments, but greaterutilization of capacity. In fact, gross fixed investment in 1976 was stillbelow the 1973 peak. There was, in general, considerable reluctance on thepart of investors to undertake new investment on account of uncertaintycreated by the process of negotiations with the EEC, and by world economicconditions, 1/ together with the delay, on the part of the Government inintroducing the proposed simplified industrial incentive scheme in line withthe EEC requirements. The new scheme is expected to offer straight invest-ment subsidies to promote industries in backward regions, and also to provideincentives with respect to (i) competitive ability; (ii) contribution to thecountry's balance of payments; and (iii) employment opportunities created.
1/ Professor Zolotas, Governor, Bank of Greece, rightly pointed out in hisspeech at the Bank-Fund Annual Meetings, 1977, that sluggish investmentwas an international phenomenon and not a problem peculiar to Greece.
- 17 -
41. Moreover, the present composition of investment is not conducive toself-sustained growth. In the recent recovery period, investment increasedin housing (especially private) which in the past has been one of the keyingredients fuelling inflation, while it declined in private manufacturing(-2.3 percent in 1976). This trend must be reversed in the future. TheGovernment did take the right step ir. setting up the consortium of banks(ETE-VME) to promote large size investments, but greater flow of long-termfunds have to be channeled through the development of a sound capital market,
(d) Balance of_Payments
42. The current account deficits in the last two years have been main-tained at a reasonable level in spite of growing trade deficits, thanks tothe large increases in the invisible surplus. Merchandise exports in 1976accounted for only 40 percent of merchandise imports, even though the latterexperienced a relatively low growth that year. Despite Greece's long tradi-tion of high exports of invisibles, attention has to be paid to containing thetrade deficit, especially since large inflows of workers' remittances, cover-ing about 25 percent of the trade deficit during the period 1974-76, may notcontinue for too long. While imports of raw materials and capital goods havebeen low in the last two years as a result of both built up stocks and thewait and see attitude towards new investments, both are likely to increase inthe future when investment picks up. More emphasis must therefore be placedon promotion of exports, especially of industrial products and certain agri-cultural crops and processed food. The competitiveness of Greek products inworld markets can only be accomplished by overall improvements in productivity.Also, a well-conceived industrial policy, emphasizing import substitution inconsumer goods industries, will enable domestic producers to provide goodsWhich are at present imported in large quantities. The Government has alreadyadopted measures to reduce dependence on fuel and energy imports by promotingthe development of domestic energy resources, particularly those concerningelectric energy production.
B. Medium and Long-Term Prospects
43. The medium and long-term prospects facing the economy are cruciallydependent on the development strategies to be pursued by the Government, espe-cially in view of the fact that the economy has to successfully cater to andthen withstand the initial adjustments resulting from EEC membership. A1-though the economy is largely dominated by the private sector which hashistorically adjusted well to diverse situations, the Government must nowclearly formulate the general guiding principles, taking into considerationthe adjustments needed in the short and medium term to reap the benefits fromEEC membership in the long run. From available data and evidence, it wouldappear that substantial preparatory work, followed by formulation of policiesand actions to implement them, lies ahead for the Government on these aspects.The critical areas, in respect to EEC membership as w7ell as development stra-tegy, which appear to merit early review by the Government to strengthenGreece's medium and long-term economic prospects, are discussed in the suc-ceeding paragraphs.
- 18 -
(a) Membership in the European Economic Community
44. The present Association Agreement between Greece and the EuropeanEconomic Community became operational on November 1, 1962. In general, theagreement provided for the phased establishment of a customs union over aperiod of twelve years. However, with respect to industrial goods, Greecewas granted a period of twenty-two years to eliminate its customs duties onEEC exports. Moreover, the Association Agreement included procedures for thefull harmonization of the agricultural policies of Greece and the Community,and the adoption by Greece of the provisions of the Common Agricultural Policy(CAP). Although the establishment of a full fledged customs union was notforeseen until November 1984, the Government made a formal application forfull EEC membership in June 1975. Preliminary talks between the two partiesopened in Brussels in July 1976. The Government hopes that accession includ-ing ratification of the membership agreement by all parliaments of EEC membercountries will take place in early 1979 or 1980. While this still appearssomewhat optimistic, and 1980/81 may be a more realistic date, the Governmentwants to prepare for full membership approximately five years ahead of theoriginal timetable laid down in the Association Agreement.
45. To make the necessary structural adjustments for full membership,Greece will receive under a second financial protocol signed in February 1977,assistance from the Community 1/ to the amount of $316 million, to be disbursedbefore October 1981. This amounts to only about $63 million on average eachyear between 1977 and 1982. Projects eligible for financing under this pro-gram, should contribute to a further diversification and an increase in produc-tivity of the Greek economy, in particular through improvement of the economicinfrastructure and modernization of the agricultural sector with the objectiveof promoting the complementarity of Greek agriculture with that of the Commu-nity. Taking into account the substantial investment in infrastructure, power,transport and agriculture that Greece must make during the Plan period priorto its formal entry into the EEC to bring facilities in all these sectors toa relative par with the much more advanced EEC countries, the investment needsthereof will far exceed the relatively meagre level of EEC assistance duringthese years. Indeed although such investments have to be made between now and1981, the preliminary draft Plan does not appear fully to envisage them, norwhere the domestic and external resources for such substantial investments(which will not necessarily have high income returns) will come from. Whileit is expected that when Greece formally joins the Community, there will be anincreased private capital inflow for investment in industry, the infrastruc-tural investment mentioned above appears necessary to attract this externalprivate industrial investment.
1/ Channelled for investment projects through the European Investment Bank(EIB). It is however understood that should EEC entry come about beforethe five year protocol period ends in February 1982, this assistance maybe pro-rata reduced.
- 19 -
(i) Effects on_Agriculture
46. The overall effect of full integration on Greece's agriculturalsector is expected to be favorable in the medium to long term, provided cer-tain structural deficiencies are removed and large inv'estments are undertakenin the next five years to prepare the basic infrastructure needed to bringGreek agriculture in line with the EEC standards.
47. The elimination of the remains of trade restrictions in the CommonMarket, i.e., import levies and quotas, will have an immediate positive effecton Greece's export potential, especially in areas where it has a distinctcomparative advantage because of favorable climatic conditions, i.e., tobacco,cotton, currants, sultanas, flowers, and certain varieties of fruits andvegetables. However, the agricultural sector will require a degree of re-orientation, and restructuring to reduce competition with the Community'sMediterranean farmers with regard to such "sensitive" products as olive oil,wine and certain varieties of fruits and vegetables. A further diversifica-tion will be required into those commodities for which there will be anexpanding market i n the Community. In addition, the sector shbuld benefitfrom the price support mechanism of the Agricultural Guarantee Fund, whichwill stabilize and possibly improve farm incomes, provided productivity israised. Finally, once Greece's membership is ratified, then the Greek agri-cultural sector will become eligible for financial assistance under theguidance section of the Community's Agricultural Fund to accelerate farmdevelopment, promote agricultural reform and harmonize its farmri polizy withthe CAP.
48. The basic structural weakness of Greek agriculture is however itslow level of productivity, which is estimated to be 45 percent of the Com-munity average. This is the result of small and fragmented larnd holdings,impeding the adoption of modern technology, lack of appropriate marketingfacilities, and an insufficiently developed network of cooperatives. Anyimprovement in farm incomes after full membership, is closely linked with anincrease in productivity, especially since the prices for Greek agriculturalproducts are generally in line with the Community's guarantee scheme, whereasthe costs of agricultural production are likely to increase following Greece'saccession on account of additional expenditures required to meet the EECminimum standards with respect to quality, size and packing of farm productsIn addition, the farmers will no longer receive state subsidies of a recurrentnature since such assistance is incompatible with the Community's rules ofcompetition. Although the present system is to be replaced by the EEC systemof capital/grant aids, this assistance is considered to be less favorable thanthe considerable subsidies on agricultural inputs, credit and exports, whichare currently being extended to Greek farmers.
49. Hence, the Government will have to reorient not only its invest-ments, but also its subsidy policies in the sector to overccm.e some of thesedeficiencies. Under the draft Plan for the period 19 76L19813 the authoritiesintend to invest Dr. 47.5 billion 1/ in agriculture for such purposes. The
1/ In constant 1970 prices, as in the draft Plan documenr-
- 20 -
development program aims for the creation of more viable, more mechanized andmore efficiently organized agricultural holdings through land consolidations,the promotion of "group" exploitation and cooperative marketing organization,and the general improvement of extension services. In additiQn, the GreekGovernment has made a provisional estimate of Dr. 18.0 billion 1/, for theperiod 1977-1985, of investment required to bring the agricultural sectorin line with the Community's standards. This is unlikely to be adequate,particularly in respect of investments prior to Greece's accession into EECmembership by around 1980/81. The projected expenditure relates to storageand marketing facilities, quality control, slaughterhouses and certain insti-tutional changes. With regard to a reorientation of the present crop mix,the Government has embarked on a program to discourage production of tradi-tional crops, which are likely to meet considerable sales resistance in theEuropean markets and to provide incentives, both in terms of support pricesand financing facilities, for the cultivation of those commodities or varie-ties for which there is a growing market in the Community.
(ii) Effects on Industry
50. It is rather difficult to presage the effects of full membership onthe Greek industry, since this sector is dominated by private enterprises withthe Government providing general guidance through fiscal incentives. As aconsequence, adjustment of the industrial sector to the new conditions ofEEC membership will mainly be left to the Greek entrepreneurs themselves andthe market mechanism. After a period of strong fiscal incentives and pro-tectionism, both factors present a formidable task especially since theexisting system of state aids will be removed and substituted by a lessfavorable scheme compatible with EEC regulations. Sustained growth of theindustrial sector after full accession to the Community will therefore dependheavily on the resourcefulness of the Greek industrialists to exploit thecountry's comparative advantages and to strengthen export orientation andinternational competitiveness. This, in turn, requires at least a clear Gov-ernment industrial development policy at this stage to terminate the generalstate of uncertainty prevailing in the industrial sector of the economy whichhas discouraged private investment in recent years.
51 Like the agriculture sector, the Greek manufacturing sector alsosuffers from a low level of productivity which is, at present, about 60 percentof the EEC average. There are some large capital-intensive industrial units,whose productivity compares well with that of other EEC countries. But themajority of Greek manufacturing enterprises are small in size. They havelimited specialization and vertical integration, and face an acute lack ofmodern technology and modern management techniques.
52. To prepare the industrial sector for full EEC membership, the Gov-ernment will need to promote the international competitiveness of such enter-prises, through the revised system of industrial development incentives and
1/ In constant 1970 prices, as in the draft Plan document.
- 21 -
public investment in economic infrastructure. In general, incentives willhave to be geared towards an increased inflow of foreign capital and tech-nology and towards the establishment of larger, more efficient, units ofproduction. The new incentive system, which has to be compatible with theprovisions of the Treaty of Rome, will need to subsidize new investment withgrants and have a strong regional emphasis in order to be eligible for contri-butions from the Regional Development Fund after Greece becomes a full memberof the Community. All this will involve complicated structural and institu-tional reforms, which so far seem to have been studied only sketchily inGreece. The Government is also proposing that $85 million of the funds madeavailable to Greece under the second financial protocol, be channelled intothe industrial sector through the Hellenic Industrial Development Bank tofoster growth of larger or more efficient enterprises or those which willobtain European partners. In addition, an equivalent proportion of EIB fundswill be used by the Government to finance public investment in such projectsas power generating stations, communications, education, road construction andwater supply to strengthen the overall infrastructure for industry. However,while this aspect has not been studied in any depth either by the Governmentor by the Bank, it would appear that this level of financing is significantlyless than what might be required in view of the magnitude of the needs and thenormal costs of upgrading such infrastructure anywhere in the world.
(iii) Effects on Balance of Payments
53. The balance of trade is expected to deteriorate as a result of fullmembership, although the extent will depend on the transitional arrangementto be negotiated for the elimination of the remains of the Greek protectivetariff. Some short-term growth in agricultural exports can be expected dueto the abolition of the countervailing levies to which Greek farm products arecurrently subject. On the other hand, imports from the EEC, most notably ofmanufactured consumer goods, will probably increase as a result of the changesin the Greek import control system which so far have been instrumental inlimiting private sector imports. The short-term negative effect on the tradebalance cannot be expected to be appreciably offset by an increase in invisiblereceipts from tourism, shipping earnings, and workers' remittances (unlessemployment opportunities in the Community improve dramatically). As a result,the current account deficit is expected to be higher, after accession to theCommunity, at least in the short run. Indeed, if in preparation for itsformal entry into the EEC, Greece also undertakes the infrastructural andrelated investments between 1978 and 1981 necessary to bring these facilitiesgradually on to a par with other EEC members, which as stated earlier is notadequately taken into account in the preliminary draft Plan, the currentaccount deficit can be expected to be higher than what is now projectedwithout taking such investment expenditures into account. This obviously alsoraises a concomitant issue of from what sources can Greece reasonably expectto obtain foreign exchange resources to cover these additional deficits.
- 22 -
4> 'LiThe capital account of the Greek balance of payments is expected toi=prov after accession because of a substantial net transfer of various EECfunds to the local budget. Recent estimates indicate that total receipts byG- from .he =mirity, after accession, on account of the agriculturalregional, social and research policies could exceed Greece's contributicn tothe EEC budget by approximately $340 million per year. However, nearly 70percent of this net estimated transfer will be tied to Greece's developmentprogram and will thus critically depend on the Government's ability to for-mulate, submit and implement an increasing number of development projects.A further improvement of the capital account is expected due to an increasedinflow of private venture capital, although this will be a gradual process andis unlikely to give rise to dramatic changes. On the other hand. Greek member-ship TM11 entail acceptance of Community legislation governain - the remno;al ofrestric.lvqns or. capital flows between the member states. SirnL.c ;Gz'eece stillapplies exchange control on most categories of transfers, liberal-zation couldresult in a substantial outflow of private capital. Over a ll, if is thus esti-mated that total foreign borrow ing will still equal, and in al-L probabLityexceed, ihat would ha¢e been required under the conditions oi as-sociate mem-bership, deDending on the outcome of negotiations rwith respe trastionalarrangements.
(iv) Fiscal Effects
55. Full membership will have considerable impact on botih the recirrentand capital budgets of the Government. On the revenue side, the structure ofthe Greek system of indirect taxation will require modificat -c.s to move fromsimple turnover tax to value-added tax. Regarding current expenditures. theGovernment will have to eliminate a majority of its incenti4ves and replacethem by capital assistance, to qualify for the various CommunThv ft
56. Once Greece is formally admitted to EEC memberAz access to various funds of the Community which will more tra-S f0 rthe tlransfers Greece has to make to the EEC budget consAj ingall customs duties and agricultural levies and a variable prap,-rtOL - "n3-' to t
percent, of the local VAT base. These funds are: (i) the Fu--f2_t naFund Lor the development of regions with serious unemployent or S ' -uc
tural problems; (ii) the EuroDean Agricultural Guidarce ando ;-for price support operations with respect to agricultural o= toassist in the financing of structural improvements in t;he agricult ctor;and (iii) the European Social Fund which is earmarked fo- ralr,raa3rresettling unemployed or underemployed labor, Accordirn g :- Q
based on the 1976 budaet -and the 1972-1974 production a:<--.etotal transfer from the Community's budget to Greece ismillion (453 million U.A.) a year, after accession in 119I-$§. -h- totaltransfer of resources from Greece is assumed to be $I 71,1. Fi- 'ornU.A.)9 giving a net transfer to Greece of $340 million peashould be bornle in mind that the contributions of the aar'Uae SU3ject to rules of matching, and will thus depend on the qcaal' J anfd VOu-ifS
of projects -Lndertaken and the ability of the Governmien` otial domestic financing part of the cost. Local counterpa-- .- _f-t-2
- 23 -
is conservatively estimated at $600 million per annum. Substantial new reve-nue generating efforts will be needed to obtain such domestic funds throughnon-inflationary methods, and it might be worthwhile for the Government toinitiate detailed studies on this crucial aspect without undue delay.
(b) The Draft Five-Year Plan (1976-1980) and Medium Term Growth
57. A preliminary draft outlining the broad features of the 1976-1980Plan was approved by Parliament in June, 1977. The targets for the remainingperiod of the Plan are currently being reviewed in the light of recent economicdevelopments, and a revised draft Plan will be submitted to Parliament nextyear. The discussions which follow are based on the broad targets of thepreliminary draft Plan and some additional information provided by the Centerfor Planning and Economic Research (K.E.P.E.). To that extent the analysisshould be considered as tentative. The broad targets of the preliminary draftPlan are given in Table 6 below, along with the figures for the precedingfive-year period.
Table 6: TARGETS OF THE 1976-1980 PLAN AT CONSTANT 1970 PRICES
Actual Targets1970-1975 1976-1980
(Average Annual Growth Rate %)
1. GDP at Factor Cost 5.5 6.5Primary Sector 3.6 4.1Secondary Sector 5.8 9.2(manufacturing) 7.5 10.3Services 6.0 6.0
2. Consumption 6.1 /1 5.4Private 5.7 5.0Public 8.3 7.3
3. Total Investment 0.9 /1 10.2Private Gross Fixed Investment 1.1 10.3Public Gross Fixed Investment 1.1 15.1
Shares (%) 1975 1980
INV/GNP 21.4 25.4Secondary Sector/GDP 31.8 35.9Manufacturing Sector/GDP 21.0 24.9Primary Sector/GDP 16.6 14.1Average Savings Rate 16.7 22.5
/1 Period 1971-75.
Source: Preliminary Draft 1976-1980 Plan.
- 24 -
These are:
(i) an annual GDP growth rate of 6.5 percent, with greatest contri-bution coming from industry which is expected to percent per year. Agricultural output is assumed to increaseat 4.1 percent per annum in spite of poor performance 4r. '
(a decline of 1.5 percent) and expected stagnation in 19779
(ii) Investment is anticipated to pick up substantially, and growat a rate of over 10 percent per annum implying an investmentGNP ratio of over 25 percent in 1980;
(iii) consumption expenditures are anticipated to decl Ine from about6 percent growth in the period 1970-1975 to 5.4 percent averageannual increase in the Plan period leading to a rise in savings(average savings rate is expected to increase from 16.7 percentin 1970-1975 to 22.5 percent over the Plan period);
(iv) a marked shift in the composition of GDP with the share of thesecondary sector to GDP rising from 31.8 percent in 1975 to 35,9percent in 1980 at the expense of the agriculture sector (itsshare to GDP is anticipated to fall from 16.6 percent to 14.1percent over the same period).
58. As regards the external sector, the current account deficit is ex-pected, in nominal terms, to remain about the same as in 1976, i.e. around$1.1 billion, thereby reducing substantially the ratio of current accountdeficit to GNP. Exports, in nominal terms, are expected to grow at 18.1 per-cent per annum, while imports are expected to increase at 12.6 percent perannum in nominal terms. The surplus in invisibles is expected to increase at11.8 percent per year. A rather heroic assumption is that inflation willaverage only 7 percent per annum over the Plan period.
59. On the basis of actual performance in 1976 and the anticipated out-come of 1977, some of the preliminary draft Plan assumption and targets seemover-ambitious, and this has prompted the above-mentioned review of thetargets for the remaining period of the Plan. The draft Plan implicitlyassumes for the period 1978-1980 an average GDP growth rate around 7 percent,inflation of about 5 percent per annum, an annual investment growth rate of12 percent and growth of the agriculture sector at over 5 percent per year --all of which seem infeasible given the current situation and policy changesunderlined in the Plan. The balance of payments assumptions are also opti-mistic, partly because of a very ambitious inflation target. While exportsare expected to grow at about 10 percent in real terms, the projections assumean import growth of only 12.6 percent per annum in nominal terms. The latterassumption may be unrealistic, since Greece will have to import a considerableamount of capital goods to step up investment growth to over 10 percent in thePlan period. Also, there would be very little leeway to switch imports fromconsumer goods to capital goods once the import control regime is dismantledupon becoming a member of the EEC, and especially since consumer goods are
- 25 -
highly income-elastic and the productive sectors in Greece are at a disad-vantage to produce such goods vis-a-vis the EEC countries. Most of thetargets are indicative of the long-term prospects facing the Greek economyprovided the Government can ensure a smooth transition to EEC membership.However, the targets are ambitious given the Plan horizon, since the devel-opments during the first two years are more or less known.
60. The overall investment strategy in the Plan quite appropriatelycalls for a change in emphasis from housing to manufacturing. The share ofinvestment in manufacturing is to rise from 15.2 percent of total investmentin the period 1970-1974 to 25 percent in 1976-1980 while the share of invest-ment in housing is expected to fall from about 29 percent to 21 percent overthe same period. But the policies to bring about this change are not clearlyemphasized in the Plan. In fact, such a change would require greater importof capital goods, which is not consistent with the import projections, asmentioned earlier. Also, such a switching would only be possible if theGovernment were successful in reducing inflation and keeping wage increasesunder control (to ensure a reasonable profit-margin for investors). Reducedinvestment in housing would require mobilizing private savings (includingforeign exchange deposits and workers' remittances) and channelling them toproductive investment through the introduction of a much broader capitalmarket. The public sector is envisaged to play a bigger role in the Planperiod with its participation in total investment rising from 27.1 percent in1976, to 33.3 percent in 1980. Transportation, irrigation, education, andwater and sewerage are expected to get the major share of its investment, asin the previous period, 1971-1975.
61. The preliminary draft Plan lacks a long-term policy frame, since itis not linked to any perspective plan which spans a period of about 10 years.Given the short-term focus, the draft Plan does not take into account, asmentioned in paragraphs 51 to 61 above, the full implications of EEC member-ship which will be felt after the Plan horizon. Such a long term view isnecessary even on other grounds. The economy has been experiencing arespectable growth in the last two years, but with sluggish private invest-ment. This growth was the result of expansionary fiscal and monetary poli-cies and increased investment in housing, which, if allowed to continue, wouldlead to a high rate of inflation. The strategy to be adopted has to containinflation by pursuing less expansionary policies, and by mobilizing savingsinto investment in sectors strategic for self-sustained growth.
62. Since the draft Plan emphasizes the role of the market mechanismwith State intervention only in face of indivisibilities and externalities,there is all the more reason to formulate a Plan spelling out the broadstrategies of the Government, to remove the uncertainty associated with newinvestment. The Plan needs to reorient the economy by clearly formulatingthe areas where the Greeks possess a comparative advantage vis-a-vis theEEC. This overall view of the economy is needed if the costs of transitionare to be minimized. The new industrial strategy to be adopted should be anessential part of the Plan document, as well as Sectoral Plans for the otherkey sectors.
- 26 -
63. Based on past experience, the likelihood of shortfalls from theinvestment levels envisaged by the preliminary draft Plan cannot be altogetheroverlooked. At the same time, the overall growth of GDP and the investmentlevels which it assumes, are likely to lead in the medium term (1977-1981) tohigh current account deficits and external borrowing requirements. Besides,as indicated earlier, that draft does not appear to fully reflect investmentexpenditures necessary for initiating gradual improvements, prior to EECentry, in Greek infrastructure and institutions to bring them on to a parafter a period of time with EEC countries. In this background, assuming thatsome of the Plan investments will be substituted with EEC related investments,and an effort will be made by Greece to minimize shortfalls between plannedand actual investment expenditures, the Bank's assessment indicates thatGreece should be able to sustain an annual gross fixed investment between 1977and 1980 of the order of around Dr. 200 billion annually. This is somewhatless than the average annual level of Dr. 225 billion 1/ which the preliminarydraft Plan envisages, and implies an investment growth of about 8 percent perannum during the Plan period.
64. With such growth in investment, a GDP growth rate around thatattained in 1976, as against 7 percent implied in the preliminary draft Plan,may be feasible, and would indeed be well over the levels anticipated by mostEEC member countries in the medium term future. On the domestic resourcemobilization side, the Bank projection assumes that by 1980, domestic savingsas a share of GDP will rise to about 20 percent, implying a consumption growthaveraging less than 5 percent per year. Such growth would be consistent witha current account deficit of the order of $1.4 billion in 1980 (the Planassumes a deficit of $1.1 billion in that year), since the import of capitalgoods will need to increase to sustain such an investment rate. Assuming onlya very gradual tapering of inflows of foreign exchange deposits, the Governmentmay need to borrow, in gross terms, an average of about $800 million annuallybetween 1977 and 1980 (an average net borrowing of about $300 million a year)to finance this deficit as well as to allow for increased amortization pay-ments and some improvement in reserves. In other words, the Government willhave to tap capital markets on top of new private sector external borrowingwhich is expected to average $250 million annually in this period. Debtservicing should not constitute a heavy burden, since the external public debtservice ratio is likely to be around 11 percent in 1980 and between 15 and 16percent in that year if private sector debt service obligations are alsoincluded. However, in view of Greece's rather limited access to concessionaryfinance from bilateral and multilateral sources until its accession to theEEC is ratified, the Government will have to continue to borrow meanwhile onrather hard commercial terms from the European capital market. It is never-theless desirable for Greece to try and obtain as much of its capital needsas possible in the form of longer-term funds, at least during the transitionalphase of its membership in the EEC.
1/ Although the Plan figures are in 1970 constant prices, this is a figureconverted to 1976 constant prices.
STATISTICAL ANNEX
POPULATION AND SOCIAL DATA
Table 1.1: Population and Migration Flows1.2: Population Trends1.3: Estimated Employment by Branch of Economic Activity
and Unemployment1.4: Number of Schools, Teachers and Pupils1.5: Public Health Infrastructure1.6: Indices of Living Standards by Region
NATIONAL ACCOUNTS
Table 2.1: Expenditure on Gross National Product (Current Prices)2.2: Expenditure on Gross National Product (Constant Prices)2.3: Gross Domestic Product by Industrial Origin (Current Prices)2.4: Gross Domestic Product by Industrial Origin (Constant Prices)2.5: Gross Domestic Asset Formation2.6: Financing of Gross Domestic Asset Formation2.7: Gross Fixed Investment by Sector and Origin
BALANCE OF PAYMENTS
Table 3.1: Balance of Payments: Current Account3.2: Balance of Payments: Capital Account3.3: Commodity Composition of Imports (C.I.F.)3.4: Commodity Composition of Exports3.5: Invisible Receipts and Payments3.6: Imports and Exports by Areas3.7: Merchandise Trade with EEC3.8: Indices of External Trade
EXTERNAL DEBT
Table 4.1: External Public Debt Outstanding as of December 31, 19764.2: Service Payments, Commitments, Disbursements and Outstanding
Amounts of External Public Debt
PUBLIC FINANCE
Table 5.1: Summary of the Central Government Operations5.2: Central Government Ordinary Revenues5.3: Central Government Investment Expenditures by Branches of
Economic Activity5.4: Payments and Receipts of the Consumer Goods Account5.5: Revenue and Expenditure of Local Authorities5.6: Gross Fixed Capital Formation of Public Enterprises5.7: Central Government Current Expenditures5.8: Central Government Ordinary Budget Expenditure5.9: Consolidated Public Sector: Deficit and Financing
-2-
MONEY & BANKING
Table 6.1: Money and Quasi Money6.2: Factors Affecting Money Supply6.3: Total Outstanding Bank Credit6.4: Deposits with Commercial Banks and Special Credit Institutions6.5: Interest Rates on Bank Deposits in Drachmas6.6: Interest Rates on Bank Deposits in Foreign Exchange6.7: Interest Rates on Bank Credits
AGRICULTURE
Table 7.1: Land Classification7.2: Distribution of Land Holdings7.3: Crop Areas7.4: Crop Output7.5: Crop Yields, National Averages7.6: Livestock Products7.7: Imports of Selected Agricultural Products7.8: Exports of Selected Agricultural Products
INDUSTRY
Table 8.1: Value Added in Industry, at Current Prices8.2: Value Added in Industry, at Constant 1970 Prices8.3: Value Added Per Person Employed in Manufacturing8.4: Structure of Greek Industry8.5: Exports of Manufactures8.6: Imports, Exports, Production and Internal Consumption
of Petroleum Products8.7: Electricity Generation and Consumption
PRICES & WAGES
Table 9.1: Price Indices9.2: Price Indices for Entire Greece9.3: Annual Average Hourly Wages of Workers in Industrial and
Handicraft Establishments: 1970-19759.4: Minimum Daily Wages: 1970-1975
OTHERS
Table 10.1: Tourist Arrivals10.2: Tourism - Hotel Facilities10.3: Land Transport Statistics10.4: Port Movements10.5: Greek Merchant Fleet: Vessels of 100 GRT. and over
Legend
nilnot applicablenot available
Table 1.1: POPULATION AND MIGRATION FLOWS
(In Thousands)
1960 1965 1967 1970 1971 1972 1973 1974 1975 1976
TOTAL POPULATION- 8,327 8,550 8,716 8,793 8,831 8,889 8,929 8.962 9.046.5 9,169.0
Live Births 157.2 151.4 162.8 144.9 141.2 140.9 137.5 143.9 142.3 147.0
Deaths (net of still- 60.5 67.3 72.0 74.0 73.8 76.9 77.6 76.3 80.1 81.5births)
Natural Increase 96.7 84.1 90.8 70.9 67.4 64.0 59.9 67.6 62.2 65.5
Emigration Overseas2/3/ 17.8 29.0 26.3 24.2 18.7 13.2 11.7 12.4 8.8 8.2
of which: United States 3.6 2.8 11.8 11.5 8.3 6.6 6.0 6.3 4.6 4.2
Emigration to Europe&/ 26.9 87.2 15.7 68.1 42.6 29.1 15.1 10.9 10.1 10.2of which: Germany(West and East) 21.5 80.6 9.7 65.3 40.0 26.7 12.8 8.3 7.3 6.8
Total Emigration_.' 47.8 117.2 42.7 92.7 61.7 43.4 27.5 24.4 20.3 20.4
Total Immigration4/ ** . * 22.6 24.7 27.5 22.3 24.5 34.2 32.1
Net Migration ., . .. -70.1 -37.0 -15.9 -5.2 +0.1 +13.9 +11.7
1/ Mid-year estimates.21 Brazil, United States, Canada, other American, Asia, Africa, Australia and other Oceania._] Permanent emigration: Greek citizens, permanently residing in Greece who go abroad to settle there for a period of time
exceeding one year._j Permanent immigration: Greek citizens who have stayed abroad for more than one year and returned home to stay for a period
of time exceeding one year.
Sources: National Statistical Service (Statistical Yearbooks and Monthly Statistical Bulletins), Ministry of Coordination
Table 1.2: POPULATION TRENDS
PopulationlJ(In Thousands)
Annual Avera&e
1951 1961 1971 1976 ____
Rurali 3,622.6 3,674.6 3,081,7(Per cent) (49.1) (44.4) (35.2) -1.61 ..
Semi-Urban 1,130.2 1,085.9 1,019.4(Per cent) (12.6) (12.1) (11.6) -
AlUrban 2,880.0 3,628.1 4,667.5
(Per cent) (38.3) (43.5) (53.2) 280 ...
Greater Athens 1,378.6 1,852.7 2,540.2(Per cent) (18.0) (22.1) (28.9) 3.71
Greater Thessaloniki 302.6 380.6 557.4
Greater Patras 94.2 104.0 120.8
Greater Volos 73-9 81.1 88.1
Greater Heraklion 58.3 70.0 84.7
Total Population 7,632.8 8,388.6 8,768.6 0.45 0.76
1JCensus figiires for 19351, 1961, '.971; Mi(s-.year estimates 1975021/ PL.>ti.,ton of ane in u'swh:ch the Lrgest population center according to the 1971 Census,
11-as a. t.AsSt 2 , 000 t.h& S 8 ant: 3] 1iY.i tatn cw ;. .. hi;ch tie large st population ceniter, according to t 1971 Census,
.9, n000-9,A)f00g0 .,iz..} ,-4as
4]P Th:.vK,.:la.Xof OD i I Opa1Iti c ms::Oi :c -hS.ich thl@ largesi& population centter, according to tl,-. 1971 Census,
has ar :I.east 10,000 inhabitants.
Sources, National Statistical Service of Greece. Ministry of Coordination.
Table 1.3: ESTIMATED EMPLOYMENT BY BRANCH OF ECONOMIC ACTIVITY AND UNEMPLOYMENT
(In Thousands)
Data at a National level!/ 2'Economic Activity 1951 1961 1971
Total Total Male Female Total
Total all Sectors 2,839.5 3,638.0 2,329.6 905.4 3,235.0
Agriculture, Livestock, Forestry 1,367.3 1,960.4 834.4 478.2 1,312.6and Fishing
Non-Agricultural Branches 1,472.2 1,678.1 1,495.2 427.2 1,922.4
Mining and Quarrying 13.6 21.5 19.5 1.6 21.1
Manufacturing 450.4 488.6 404.3 150.1 554.4
Electricity, Gas, Water Supply 11.2 19.8 22.2 2.6 24.8
Construction and Public Works 75.0 167.4 254.9 1.5 256.4
Transport, Storage, Communications 138.0 153.9 198.6 13.0 211.6
Trade, Restaurants and Hotels ) )
Banks, Insurance and Real Estate) 607.5 705.6 ) 569.9 219.8 789.7
) )Services ) )
Other 176.4 121.5 25.8 38.6 64.4
Unemployed 179.4 215.2 67.0 34.7 101.7
% of Labor Force 6.3 5.9 2.9 3.8 3.2
Source: _J National Statistical Service: Census 1951, 1961, 1971.
_2J Estimate.
Table 1.4: NUMBER OF SCHOOLS, TEACHERS AND PUPILS
School Year: 1965/66 1970/71 1972/73 191JI14 1Oi5i6
Primary Education
Schools 10,822 9,838 9,736 9,738 9,725
Teachers 27,376 29,336 28,427 29,921 30,380
Pupils (thousands) 975.9 914.3 914.0 925.5 932.9
of which:in public 911.8 848.1 839.3 848.6 862.8schools
Secondary Education *
High schools 916 940 1,111 1,137 1.184
Teachers 11,251 12,958 14,935 16,595 20,791
Pupils (thousands) 374.6 456.4 490.9 504.0 551.7
of which:in publicschools 327.0 397.0 427.7 438.0 490.2
Technical/VocationalTraining
Schools 457 1,166 1,221 1,451 N/A
Students (thousands) 81.2 117.0 134.1 145.9 N/A
Higher Education
Schools 29 31 32 34 34
Professors (Teaching 1,192 3,483 4,614 5,068 6,058Staff)
Students (thousands) 58.0 76.2 80.3 84.6 99.8
Source: N.S.S.G., Ministry of Education
* The 1975/76 data of the primary and secondary education refer to the beginningof the school-year, while the corresponding data of the previous years shown inthe above columns, refer to the end of the school-year.
Table 1.5' PUBLIC HEALTH INFRASTRUCTURE
Of Which:With Over Hospital Nursing Doctors
Hospitals 100 Beds Beds ('000) Doctors Personnel (Total)1967 1972 1976 1967 1972 1976 1967 1972 1976 1967 1972 1976 1967 1972 1976 1967 1972 1976
Total Greece 973 798 724 95 117 138 52.2 56.0 58.6 5,620 7,061 9,233 11,704 13,552 15,786 13,159 15,351 18,816
Greater Athens 238 200 171 55 63 69 27.3 28.4 28.7 3,579 4,417 5,492 6,927 7,953 9,061 6,963 8,869 11,223
Rest of CentralGreece & Euboea 102 82 71 3 3 5 2.1 2.3 2.4 204 230 256 423 460 499 767 708 752
Pepoponnese 143 110 98 4 6 7 3.0 3.4 3.6 298 325 425 655 739 826 898 875 987
Ionian Islands 19 17 16 2 3 3 1.2 1.1 1.1 57 62 78 188 190 205 156 163 182
Epirus 34 39 31 1 1 1 0.8 1.0 0.9 75 98 118 167 192 225 269 262 295
Thessaly 93 71 67 1 3 4 2.0 2.3 2.6 196 230 307 433 497 609 572 557 619
Macedonia 176 145 149 19 27 38 9.0 10.6 12.2 781 1,217 2,011 1,694 2,193 2,882 2,387 2,803 3,572
Thrace 37 27 28 1 2 3 0.7 0.7 0.9 67 91 117 141 182 255 239 237 255
Aegean Islands 52 42 37 6 6 3 3.9 3.7 3.4 163 148 177 635 649 626 465 401 444
Crete 79 65 56 3 3 5 2.3 2.4 2.7 200 243 252 441 497 598 443 476 487
Source: Center of Planning and Economic Research, National Statistical Service.
Table 1.6: INDICES O LIVING STANDARDS BY REGION
CentralGreater Greece Pelopo- Ionian Epirus Thes- Macedo- Thrace Aegean Crete
Atbens and nesos Islands saly nia IslandsEuboea
1. Per capita electricpower consumptiona. Total (KWH)
1962 176 177 154 65 48 139 151 34 75 711968 1,193 1,750 343 186 119 338 648 87 201 2071971 1,249 2,964 560 303 228 532 928 170 343 3461972 1,695 3,227 605 399 269 663 1,090 206 413 4061973 1,895 3,625 764 448 323 752 1,213 237 495 476199745 1,824 3,905 779 440 334 796 1,247 249 463 491
b. For domestic use(KWH)1962 277 21 28 21 15 24 38 9 27 221968 482 54 66 72 44 57 96 27 79 721971 614 83 123 120 74 95 152 55 135 1221972 708 99 147 147 94 115 182 69 165 1451973 790 120 179 185 119 140 217 86 200 15715734 130 189 182 128 152 236 95 201 187
2. Private cars per10,000 inhabitants
1962 191 14 15 15 8 18 30 8 24 151968 481 62 58 67 38 72 119 33 82 711973 818 142 143 178 109 166 243 219 180 193
19741975
3. Inhabitants pera. Doctor
1962 330 1,756 1,380 1,514 1,635 1,562 1,065 2,236 1,142 1,2791966 314 1,265 1,175 1,243 1.256 1,246 810 1,849 959 1,1011971 310 1,413 1,035 1,157 1,201 1,069 638 1,441 1,024 1,0931972 286 1,401 1,128 1,132 1,184 1,185 675 1,391 1,042 9591973 261 1,387 1,075 1,132 1,120 1,078 545 1,439 1,004 1,0041974 245 1,376 1,072 1,111 1,154 1,035 499 1,396 1,135 9241975
b. Dentist1962 1,150 4,756 4,157 7,413 5,655 4,985 5,089 7,826 3,234 4,5791968 1,052 4,504 4,551 6,928 4,928 4,570 3,296 7,754 3,231 4,7371971 1,087 4,448 4,012 6,571 5,081 3,837 2,501 5,593 3,190 4,6631972 961 4,390 3,781 6,587 5,542 3,437 2,633 5,885 3,095 4,0771973 840 4,016 3,781 6,587 4,632 3,529 2,129 5,586 3,264 4,3491974 811 4,016 3,575 5,589 3,694 3,149 1,904 5,231 3,239 3,624
1975c. liospital bed
1962 73 496 330 186 390 390 215 594 211 2171968 80 454 318 164 416 351 212 581 109 1971971 89 413 276 171 328 281 181 311 108 1861972 89 433 289 168 313 289 178 466 112 1901973 89 428 302 177 303 282 167 455 115 1851974 88 436 289 176 296 275 168 440 122 178
1975
Source: Ministry of Coordination
Table 2.1: EXPENDITURE ON GROSS NATIONAL PRODUCT (GNP)1/(In Billions of Drachn.ae)
1960 1965 1970 1971 1972 1973 1974 1975- 19761/
At Current Prices
Consumptioni Expenditures 93.6 152.9 239.9 264.9 297.4 370.9 474,9 578.6 684.2Private 81.3 131.8 202.2 223.5 251.5 315.5 396.8 476.5 561.7Public 12.3 21.1 37.7 41.4 45.9 55.4 78.1 102.1 122.5
Gross Fixed Investment 20.1 38.7 70.6 83.3 104.8 135.7 125.4 140.2 175.6Private 13.6 28.4 50.7 57.3 73.0 98.0 87.8 101.1 128.4Public 6.5 10.3 19.9 26.0 31.8 37.7 37.6 39.1 47.2
Change of Stocks -0.4 8.5 13.3 8.9 6.8 30.7 25.7 26.7 23.0
Exports of Goods & Non-Factor IServices 9.6 16.1 30.0 34.1 44.3 68.9 87.9 109.5 139.5
(Less) Imports of Goods & Non-FactorServices -17.6 -36.5 -55.0 -60.9 -75.7 -122.1 -144.7 -181.5 -216.3
Factor Income Received from Abroad 2.2 4.4 7.8 10.8 13.0 17.6 24.7 26.8 34.8
(Less) Factor Income Paid Abroad -0.3 -0.8 -2.3 -2.9 -3.4 -4.5 -6.9 -7.6 -10.0
GNP At Market Prices 107.2 183.3 304.3 338.2 387.2 497.2 587.0 692,7 &3ln8.
Source: Ministry of Coordination, National Accounts Services1/ Due to rounding parts may not add to totals2/ Provisional Data3/ Provisional Estimate
Table 2.2: EXPENDITURE ON GROSS NATIONAL PRODUCT (GNP)1/(In Billions of Drachmae)
2/ 3/1960 1965 1970 1971 1972 1973 1974 1975,2 1976-
At Constant 1970 Prices
Consumption Expenditures 123.3 174.6 239.9 256.6 276.3 292.1 299.0 322.7 339.2
Private 102.8 146.3 202.2 217.0 234.4 247.4 248.9 266.5 281.2
Public 20.5 28.3 37.7 39.6 41.9 44.7 50.1 56.2 58.0
Gross Fixed Investment 29.2 49.0 70.6 80.5 93.0 100.1 74.5 74,7 79.5
Private 19.3 35.1 50.7 55.1 64.1 72.2 52.3 53.6 57.9
Public 9.9 13.9 19,9 25.4 28.9 27.9 22.2 21.1 21.6
Change of Stocks -0.8 8.8 13.3 8.7 6.5 21.5 14.0 13.4 11.8
Exports of Goods & Non-Factor Services 10.8 16.7 30.0 33.5 41.2 50.8 48.2 52.9 61.4
(Less) Imports of Goods & Non-FactorServices -19.1 -38.1 -55.0 -59.2 -68.3 -90.4 -75.1 -80.7 -87.0
Factor Income Received from Abroad 2.4 4.6 7.8 10.4 11.6 13.1 12.7 11.5 13.5
(Less) Factor Income Paid Abroad -0.3 -0.8 -2.3 -2.9 -3.3 *-3.3 -3.9 -3 ,8 -4.6
GNP At Market Prices 145.5 214.8 304.3 327.6 357,0 383.9 369.4 3 90.7 413.8
Growth Rate (%) - 4.8 6.0 7.7 9 .0 75 -3.9 5. 8 6.5
Source: Ministry of Coordination, National Accounts Services
.1/ Due to rounding parts may not add to totals2/ Provisional Data3/ Provisional Estimate
Table 2.3: GROSS DOMESTIC PRODUCT BY INDUSTRIAL ORIGIN1/
(In Billions-of Drgchmae)
1960 1965 1970 1971 1972 197'A 197h 1975-2/ 197611
At current Prices
Agriculture, forestry, etc. 21.3 38.6 47.1 52.3 61.5 87.3 100.6 111.4 129.2Mining,and quarrying 1.1 1.8 3.5 4.2 4.9 6.0 6.7 8.1 9.7Manyfacturing 15.2 25.1 49.3 55.6 61.9 86.2 106.2 121.7 146.3Electricity, gas, water 1.4 2.7 5.2 5.6 6.3 7.1 8.1 9.3 11.2Construction 6.3 12.0 23.0 26.3 33.6 42.7 37.9 42.9 52.9Transportation, communications 6.5 10.9 19.8 22.0 25.3 29.1 35.1 47.6 56.2Trade, banking 13.7 23.6 37.1 41.0 48.0 65.0 85.6 98.0 114.8Housing (rents) 9.7 13.7 21.1 22.9 25.0 28.8 33.9 38.5 43.7Administration, defence 7.8 12.5 22.6 24.9 27.1 32.2 43.6 52.0 62.1Health, education 4.4 7.3 11.9 13.2 14.5 17.5 23.0 27.6 34.4Other services 5.9 9.8 17.5 19.4 21.9 26.3 31.6 38.2 46.9
GDP at factor cost 93.2 158.0 258.0 287.4 330.0 428.2 512.2 595.2 707.3
Indirect Taxes less Subsidies 11.9 21.8 40.9 42.9 47.7 56.0 56.9 78.3 98.7
GDP at Market Prices 105.1 179.8 298.9 330.3 377.7 484.2 569.1 673.5 806.0
Net Factor Income from Abroad 1.9 3.6 5.5 7.9 9.6 13.1 ]7.9 19.2 24.9GNP at Market Prices 107.0 183.4 304.4 338.2 387.3 497.3 587,0 692.7 830.9
Source: Ministry of Coordination, National Accounts Services1/ Due to rounding parts may not add up to totals2/ Provizional Data_/ Provisional Estimate
Table 2.4: GROSS DOMESTIC PRODUCT BY INDUSTRIAL ORIGIN"/
(In Billions of Drachmae)
1960 1965 1970 1971 1972 1973 1974 1975-2/ 196,_/
At Canstant 1970 Prices
Agriculture, forestry, etc. 29.9 43.4 47.1 48.7 51.5 51.2 53.8 56.8 55.4Mining and quarrying 1.6 2.3 3.5 4.0 4.5 5.1 4.8 4.9 5.2Manufacturing 18.4 28.1 49.3 54.6 58.9 69.2 67.3 70.2 77.7Electricity, gas, water 1.4 2.7 5.1 5.9 7.4 8.1 7.7 8.6 9.6Construction 12.0 17.9 23.0 26.3 31.2 31.9 22.1 23.0 24.3Transportation, communications 8.5 12.5 19.8 21.9 24.4 27.2 27.5 28.8 31.0Trade, banking 16.6 25.9 37.1 39.4 43.4 49.1 49.4 50.9 53.4Housing (rents) 12.2 15.5 21.1 22.5 24.3 26.3 27.9 2§.0 30.3Administration, defense 13.4 17.4 22.6 23.7 24.7 25.8 28.4 29.2 30.4Health, education 7.4 9.7 11.9 12.7 13.2 13.9 14.5 15.0 15.5Other services 7.8 11.6 17.5 18.9 20.5 21.4 19.9 21.4 23.2
GDP at factor cost 129.2 187.0 258.0 278.6 304.0 329.2 323.3 337.9 356.0
Growth rate (%) .. 6.4 5.6 8.0 9.1 8.3 -1.8 4.5 5.3
Indirect Taxes less Subsidies 14.2 24.0 40.9 41.6 44,7 44.9 37,2 44.9 49.0GDP at Market Prices 143.4 211.0 298.9 °20.2 348.7 374.1 360.5 382,8 405,0
Net Factor Income from Abroad 2.1 3.9 5.5 7.5 8.3 9.8 8.8 7.6 8.9GNP at Market Prices 145.5 214.9 304.4 327,7 357.0 383.9 369.3 390.4 413.9
Source: Ministry of Coordination!2/ ~ Ovtosi IdWa~ parts may not add to totals
3/ Provisional Estimate
Table 2.5: GROSS DOMESTIC ASSET FORMATION-/
(In Billions of Drachmae)
1960 1965 1970 1971 1972 1973 1974 1975/419762'
At Current Prices
Dwellings 5.8 12.1 19.7 23.6 32.5 41.5 27,8 38.0 48.0Non-residential buildings 3.1 4.8 9.6 10.5 13.6 19.0 21.4 18.6 23.5Other construction 5.5 9.2 16.2 19.3 22.2 26.7 25.6 30.8 36.8Machinery and other equip7entm= 5.5 12.7 25.1 29.9 36.5 48.4 50.6 52.8 67.3Gross fixed investmentA.f 20.0 38.8 70.6 83.3 104.8 135.6 125.4 140.2 175.6
Changes in stocks 2/ -0.4 8.5 13.4 9.0 6.8 30.7 25.7 26.6 23.0Gross Domestic Asset Formation- 19.6 47.3 84.0 92.3 111.6 166.3 151.1 166.8 198.6
At Constant 1970 prices
Dwellings 8.5 15.5 19.7 23.6 29.9 30.6 15.9 20.5 22.1Non-residential buildings 4.6 6.1 9.6 10.5 12.5 14.0 12.2 10 0 10.9Other construction 8.7 13.1 16.2 19.4 21.1 20.4 15.2 16.7 16.9Machinery and other equi ment-2/ 7.4 14.3 25.1 27.0 29.4 35.1 31.2 27.4 29.6Gross fixed investment2/ 29.2 49.0 70.6 80.5 92.9 100.1 74.5 74.6 79.5
Changes in stocks -0.8 8.8 13.4 8.7 6.5 21.5 14,0 13.4 11.9Gross Domestic Asset Formation2/ 28.4 57.8 84.0 89.2 99.4 121.6 88.0 91.4
1/ Due to rounding parts may not add to total.2/ Excluding ships.3/ Provisional EstimateSource: Ministry of Coordination, National Accounts Serutepq
Table 2.6: FINANCING OF GROSS DOMESTIC ASSET FORMATION(In Billions of Drachmae)
1960 1965 1970 1971 1972 1973 1974 19751'/ 1976-Z'
At Current Prices
Domestic financing 16.6 36.8 74.7 87.3 106.9 147.9 332.4 137.4 174.3
Private saving 7.4 22.2 44.6 54.9 65.9 96.5 81.9 88.4 100.2Households 6.7 20.3 38.6 49.7 59.9 85.2 69.4Corporations 0.7 1.9 6.0 5.2 6.0 11.3 12.5
Public saving 3.9 5.5 13.2 12.8 17.3 20.8 11.3 1.4 14.6Central government 2.1 1.0 5.5 4.7 5.8 6.6 -3.0 -14.0 -1.3Local authorities 1.3 3.4 4.6 5.2 6.1 7.4 8.1 9 > 9Social security funds 0.5 1.1 3.1 2.9 5.4 6.8 6.2 6 . 4 6.6
Depreciation 5.3 9.1 16.9 19.6 23.7 30.6 39.2 47.6 59.5
Foreign financing 3.0 10.5 9.3 5.0 4.7 18.5 18.6 29.4 24.3
Net lending 1.5 10.0 9.2 5.0 4.7 18.5 18.6 29.0 24.0Net transfers 1.5 0.5 0.1 - - - - 0.4 0.3
Total 19.6 47.3 84.0 92.3 1 11.6 166.4 151.0 166.8 198.6
Source: Ministry of Coordination, National Accounts Services1/ Provisional Data2/ provisional Estimate
Table 2.7: GROSS FIXED INVESTMENT BY SECTOR AND ORIGIN(In Billions of Drachmae)
At Current Prices At Constant 1970 Prices1970 1971 1972 1973 1974 1975 1976 1970 1971 1972 1973 1974 1975 1976
Agriculture, forestry etc. 7.5 8.2 9.8 12.9 12.0 15.0 19.1 7.5 8.1 8.9 9.7 7.2 7.8 8.4Public 3.5 3.6 4.5 5.3 4.7 5.3 6.2 3.5 3.5 4.1 4.0 2.8 2.8 2.7Private 4.0 4.6 5.3 7.6 7.3 9.7 12.9 4.0 4.6 4.8 5.7 4.4 5.0 5.7
Mining and quarrying 1.4 2.0 1.8 2.7 2.5 3.4 4.8 1.4 1.8 1.5 2.0 1.5 1.8 2.1Public 0.4 0.1 0.5 1.0 0.3 1.1 1.8 0.4 0.1 0.4 0.8 0.2 0.6 0.7Private 1.0 1.9 1.3 1.7 2.2 2.3 3.0 1.0 1.7 1.1 1.2 1.3 1.2 1.4
Manufacturing 10.1 12.4 16.7 20.9 25.9 26.6 30.7 10.1 11.2 13.2 14.5 14.8 13.1 12.8Public - 0.1 0.1 0.1 - 0.2 0.6 - 0.1 0.1 0.1 - - I ,.3Private 10.1 12.3 16.6 20.8 25.9 26.4 30.1 10.1 11.1 13.1 14.4 14.8 13.1 12.5
Electricity, gas, water 5.1 7.8 9.0 12.2 14.2 11.2 13.8 5.1 7.5 8.0 8.7 8.2 6.1 6.4Public 5.0 7.6 8.8 11.8 13.8 10.8 13.1 5.0 7.3 7.8 8.4 8.0 5.9 6.1Private 0.1 0.2 0.2 0.4 0.4 0.4 0.7 0.1 0.2 0.2 0.3 0.2 0.2 0.3
Transport,communications 2! 14.7 18.0 20.6 26.4 22.9 24.8 31.9 14.7 17.3 18.5 20.5 15.2 14.2 15.6Public 8.1 10.5 12.7 13.8 14.0 14.7 16.4 8.1 10.2 11.6 10.4 8.5 7.9 7.6Private 6.6 7.5 7.9 12.6 8.9 10.1 15.5 6.6 7.1 6.9 10.1 6.7 6.3 8.0
Housing 19.7 23.6 32.5 41.5 27.8 38.0 48.0 19.7 23.6 29.9 30.6 15.9 20.5 22.1Public 0.3 0.7 0.7 0.5 0.4 0.6 0.7 0.3 0.7 0.7 0.4 0.2 0.3 0.3Private 19.4 22.9 31.8 41.0 27.4 37.4 47.3 19.4 22.9 29.2 30.2 15.7 20.2 21.8
Public administration 0.8 0.8 0.9 0.9 0.8 1.1 1.2 0.8 0.8 0.8 0.7 0.5 0.6 0.6
Other service industries 11.3 10.5 13.5 18.1 19.2 20.1 26.1 11.3 10.2 12.1 13.4 11.1 10.5 11.5Public 1.8 2.6 3.6 4.3 3.6 5.3 7.2 1.8 2.7 3.4 3.1 2.0 2.9 3.3Private 9.5 7.9 9.9 13.8 15.6 14.8 18.9 9.5 7.5 8.7 10.3 9.0 7.6 8.2
Total 70.6 83.3 104.8 135.6 125.3 142.2 175.6 70.6 80.5 92.9 100.0 74.4 74.6 79.5Public 19.9 26.0 31.8 37.7 37.6 39.1 47.2 19.9 25.4 28.9 27.9 22.2 21.0 21.6Private 50.7 57.3 73.0 98.0 87.7 101.1 128.4 50.7 55.1 64.0 72.1 52.2 53.6 57.9
1/ Due to rounding parts may not add to totals.2/ Excluding ships.
Source: Ministry of Coordination, National Accounts Service
Table 3.1: BAT,ANrF OF PAYMENTS: CURRENT ACCOUNTI/& 2/
(In Millions of US$)
1971 1972 1973 1974 1975 1976
Trade Balance-1302.3 -1571.6 -2800.3 -2888.1 -3050.2 -3328.5
Exports 624.8 835.4 1230.5 1802.9 2029.4 2227.5Imports _1927.1 -2407.0 -4030.8 -4691.0 -5079.6 -5556.0
Non-Factor Services 568.7 684.8 941.6 1099.2 1278.8 1544.9
Receipts 813.6 1004.2 1407.6 1639.7 1848.3 2112.1Payments -244.9 -319.4 -466.0 -540.5 -569.5 -567.2
Factor Services 406.3 519.0 683.5 576.3 683.0 692.1
Receipts 478.7 601.7 787.8 759.3 878.1 911.7Payments -72.4 -82.7 -104.3 -183.0 -195.1 219.6
CURRENT ACCOUNT BALANCE -327.3 -367.8 -1175.2 -1212.6 -1088.4 -1091.5
1/ Data for 1974, 1975, 1976 not comparable with data of previous years due to exchangerate differences.
2/ Data based on foreign exchange statistics.
Source: Bank of Greece
Table 3.2: BALANCE OF PAYMENTS: CAPITAL ACCOUNT -
(In Millions of US Dollars)
1970 1971 1971 1973 1974 1975 1976
CAPITAL MOVEIENT I 2/ 375.1 479.3 841.2 1 035.q 1,064.8 1,330.2 1,160.8
Private venture capital 156.4 99.1 90.2 145.1 189.3 199.1 221.2Other Private Capttal2/ 95.6 138.2 190.2 270.6 250.0 320.9 360.6Commercial Banks '/ 4/ 64.5 135.8 204.1 211.6 206.0 196.7 672.9Central Bank 4/ 12.8 81.1 174.9 79.7 292.9 606.2 67.4Government loans 30.4 17.9 17.8 94.0 114.0 93.6 97.0Public enterprises loans 13.7 28.3 122.5 244.3 66.8 15.0 76.7Amortization .-83.0 -109.1 -157.3 -172.2 -180.6 -344.4 -348.0Foreign Suppliers' credit 82.9 86.8 198.2 161.4 125.4 229.5 3.8Aid-Reparations-Restitutions 1.8 1.2 0.7 0.5 1.0 13.6 9.2
Errors and omissions 9.6 4.1 - 13.2 143.5 64.0 -216.2 -129.0
Non-monetary gold - - 23.6 5 - - - -Special Drawing Rights (Use) 16.8 10.3 - 7.1 - 1.5 - - -Change in Clearing a/c and Private Barter 6/ 6.5 - 34.5 - 24.4 - 10.6 28.0 30.8 -53.2
OFFICIAL RESERVES (Change) - 6.9 192.7 501.1 12.4 -112.6 6.9 -5.7In Foreign Exchange - 3.1 211.0 463.5 - 6.8 - 77.8 12.9 -5.In Gold -13.3 - 18.3 34.6 15.1 6.8 - 6.0 -0.2In IMF gold quota 9.5 - 3.0 4.1 - 41.6 - _
OFFICIAL RESERVES (End of Period) 7/ (310.1) (502.8) (1,003.9) (1,016.3) (903.7) (910.6) (905.0)
1/ Data for 1974,1975,1976 not comparable with data of previous years due to exchange rate differences.2/ Not including withdrawals of deposits in drachmas.3/ Withdrawals in drachmas from deposits in foreign exchange of seamen, emigrants and from the housing loan
deposits scheme entered as receipts of transportation, workers' remittances and other private capitalrespectively.
4/ Due to a change in the Bank of Greece classification methods, the figures for Central Bankborrowing and Commercial Bank borrowing in 1974 and later years are not exactly comparable withthose in earlier years.
5/ Transfer from the gold sovereign reserve of the Bank of Greece.6/ Plus means net payment.7/ Including Greece's IMF gold tranche.
Source: Bank of Greece
Table 3.3: COMMODTTY COMPOSITION OF IMPORTS I/ & 2 (C.I.F.)(I n Milllions of US Dollars)
1971 1972 1973 1974 1975 1976
Foodstuffs 246.6 291.8 755.9 605.1 579.0 619.0
Raw Materials 361.4 430.3 684.2 921.2 917.3 926.8of which: for construction 172.4 213.2 349.9 409.4 387.9 412.0
Fuel and Lubricants 160.6 212.6 416.4 897.7 896.4 1039.4of which: petroleum products 147,9 188.0 390.3 857.1 856.4 987.7
Capital Goods 533.9 648.8 1087.2 1270.0 1515.2 1523.6of which: Machinery 405.6 487.3 827.5 877.2 918.9 957.0
Transport equipment 72,7 91.3 137.6 277.9 491.8 471.1Electrical equipment 55.6 70.2 122,1 114.9 104,5 95.4
Manufactured Consumer Goods 523.1 610.1 901,8 960.2 1135.7 1410.7
Freight (unallocated) 14.8 15.2 23.9 36.8 36.0 32.6
Total 1840.4 2208.8 3869.4 4691.0 5079.6 5552.2
1/ Data for 1974, 1975, 1976 not comparable with data of previous years due toexchange rate differences.
2/ On payments basis.
Source: Bank of Greece, Monthly Statistical Bulletin.
Table 3.4: COMMODITY COMPOSITION OF EXPORTS 1/ & 2/
(In Millions of US Dollars)
1971 1972 1973 1974 1975 1976
Foodstuffs and beverages 187.4 224.5 346.9 380,8 514.5 542.2Cereals (wheat, barley, and rice) 22.9 15.7 4,5 5.8 25.9 44.5
Currants 16.9 20.1 37.1 37.2 32.6 37.1
Sultanas 19,7 23.1 42.7 47.8 48.5 40.3Olives 11.7 14.2 24.5 23.8 34.7 35.8Olive oil 3.4 3.7 7.5 10,6 20.6 10.7Wine 17.3 21.4 47.7 29,5 31.2 34.1Citrus fruits 20.4 22.7 31.5 3911 60.7 61.0
Other fruits 1.7.9 24.1 37.7 39.5 81.2 55.6Fruit juice 11.6 14.2 16.2 17.5 24.0 29.3Vegetables and fruit preserves 20.9 36.2 61.4 78.5 74.4 84.3Others 24.8 29.3 36.1 51.5 80.7 109.5
Tobacco 94.7 116.8 88.3 161.2 166.9 161.7
Raw materials and semifinishedproducts 75.4 80.8 136.6 123.2 109.6 124.2Ores and minerals 46.8 54.7 73.1 104.9 140.8 136.2
Petroleum products 6.7 16.7 46.4 123,4 87.0 73.6
Manufactured goods 208.7 317.2 496.7 866.3 982.1 1,160.2Textiles and yarns 44.5 84.5 155.5 205.3 241.0 369.5
Metals and metal products. 70.5 102.0 140.4 323.7 286,2 271.5
Chemicals 15.3 22.9 33.3 40.8 68.0 65.1Cement 9.5 14.7 13.1 79.9 131.7 131.1Others 68.9 93.1 154.4 216.6 155.2
Other products 4_9 24.7 42.5 43.1 29.4 29,6
TOTAL 1 624.8 835.4 1,230.5 1429 29029,4 2,227.5
1/ Data for 1974, 1Q75, 1976 not comparable with data of previous years due to exchange rate differences.
2/ Totals may not add due to rounding: data collected on payments basis.
Source: Bank of Greece, Monthly Statistical Bulletin
Table 3.5: INVISIBLE RECEIPTS AND PAYMENTS
(In Millions of US Dollars)
1971 1972 1973 1974 1975 1976
Invisible Receipts 1292.3 1605.9 2195,4 2399. 272i6 ' 302' 8Transportation _/792 h3T4~~ b 7'j
Emigrenh~ re~vc~ wncesmj 469.6 !575.3 673/83 " o 2Fore!g-r r-Vl 0~ 3S.) 9>2.. 7 5 " 5 9 41;-7iiisura nc 39 6
Otheri- 101. 8 Vi .~i6 I 94. 9 199 2, 2 97.
Invisible Payme' ts 31773 4O2.1 570.3 723.5 764.6 786,8Transportation 777 l2O 152~9 172.3 446Foreign travel 73.7 95,8n -13,3 129.1 1 5 4 ,8 150,7Government ser-vices 34.7 47.2 60.8 88.4 67,2 67,6Interes'.t dividends, and profits 72.4 82.7 104.3 183,0 195.1 219.6Insurance 8.5 11.5 20.9 22,1 22.2 16.7Others 65.2 87,2 129.0 148.0 153,0 187,6
BALANCE ON INVISIBLES 975.0 1203.8 1625.1 1675,5 1961,8 2237.0
1/ Data for 1974,1975,1976 nlot comparable with data of previous years due to exchange rate differences.2/ Including freight, fares, seamen's and shipowners, remittances, supplies and repairs, and
contributions to seamen'ls funds,3/ Including workers' transfers from Western Europe: excludes amounts not converted to drachmas.4A/ Including expenditures of Foreign missions and NATO infrastructure.
Source: Bank of Greece, MO-ithlyl Statistical Bulletin
Table 3.6: IMPORTS AND EXPORTS BY AREASIL2/
(Percent Shares)IMPORTS EXPORTS
1971 1972 1973 1974 1975 1976 1971 1972 1973 1974 1975 1976
EEC (Nine Members) 5.AQ 5403 49.9 45.6 45.6 42.7 47.3 43.8 44.8 38.3 37.3 38.8(Six Members) A.5. 45.9 41.2 37.8 r7 7 5 42.1 39.5 39.9 33.9 33.4 35;1
Germany 20,4 19.2 18.4 15.3 16,1 16.5 19.3 19.4 20.1 16.8 18.0 19.0
France 7.2 9.9 7.2 8.6 8.7 6.3 8.5 7.4 6.4 5.1 5.8 5.3
Italy 10.1 9.8 8.4 7.7 8.6 7.8 6.3 6.2 6.1 5.7 5.1 5.4
United Kingdom 8,3 7.7 8.0 7.2 5.4 4.7 4.9 3.9 4.3 4.0 3.6 3.3
Other Europe 10.8 10,4 10.1 9.2 8.6 8.9 10.1 10.3 9.9 9.5 7.4 5.8
United States 11.4 11.4 16.9 16.1 16.6 17.2 16.8 19.5 16.9 17.8 15.0 15.2
Other America 2.5 2.5 2.5 1.8 1.6 1.9 0.8 0.6 0.7 o.6 0.6 0.5
Japan 4,6 4.2 3.0 4.0 3.8 3.9 1.6 2.3 1.2 1.3 1.4 0.7
Australia-New Zealand 1.4 1.3 1.1 1.3 1.7 0.5 0.6 0.5 0.4 0.4 0.3 0.3
Israel 0.5 0.5 0.3 0.3 0.3 0.3 0.5 0.4 0.4 0.5 0.2 0.2
Centrally-Planned Economies 6.4 6.7 6.3 5.9 7.5 8.0 14.4 13.6 15.4 11.8 13.1 12.6
Rest of the World 6,7 6.1 9.8 15.8 1.4,2 16.6 6.1 7.4 10.3 19.8 24.7 25.9
TOTAL 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
1/ Source: Table 51,Bank of Greece Monthly Statistical Bulletin, Imports and exports are recorded by theBank of Greece on the basis of receipts and payments, converted to US dollars. Totals may notadd to 100 percent because of rounding.
2/ In percent of payments and receipts including suppliers credits for imports.
Table 3.7: MERCHANDISE TRADE WITH EEC -(In Millions of US Dollars)
1970 1971 1972 1973 1974 1975 1976
EXPORTS TO EEC
TOTAL 247.4 263.2 330.4 550.9 678.7 731.1 863.6
Food stuffs 64,3 68.9 91.0 191.7 188.8 247.5 246.6
Tobacco 42.1 41.1 38.7 18.0 49.7 47.6 22.1
Minerals 17.1 20.2 21.0 38.6 58.4 62.5 65.6
Petroleum Products 21.1 36.9 7.5 3.2
Manufacturers 97.9 106.3 145.4 238.3 306.7 324.4 475.6
Textiles 20.4 30.7 60.4Metallic Products 47.6 37.2 39.0Other Manufactures 29.9 38.4 46.0
Others 44.0 26.7 34.3 43.2 38.2 41.6 50.5
IMPORTS FROM EEC
TOTAL 712.3 866.9 1,105.5 2,011.5 2,115.1 2,223.9 2,37Z.cO
Food stuffs 43.5 57.0 68.8 165.6 159.6 169.9 172.2Raw Materials 127.5 126,6 137.4 308.8 394.7 351.0 398.4
Fuels and Lubricants 18.0 33.8 26.2 93.2 134.6 27.6 52.9
Capital Goods 267.1 318.3 389.8 780.2 822.5 911.0 898.6
Machinery 200.8 243.7 295.6 610.3 599.2Transport - Equipment 35.9 37.0 40,4 72,2 145.9Electrical Equipment 30.4 37.6 53.8 97.7 77.4
Manufactured Consumer Goods 233.4 274.4 312.7 543.6 548.3 604.0 853.9
Freight and foreign suppliers' credit 22.6 56.8 170.7 120.1 55.4 160.4 -4.0
1/ Data collected on receipts/payments basis for original six members up to 1972 and for ninemembers for 1973 and onwards.
Source: Bank of Greece
Table 3.8; INDICES OF EXTERNAL TRADE(1970-100)
Total EECEEC (Six (Nine
Belgium- Nether- Germany Member United MemberFrance Lux lands F.R. Italy Countries) Kingdom Ireland Denmark Countries b.S.A. Total
IMPORTSUnit Value Index
1970 100.0 100.0 100.0 100.0 100.0 100.0 103.0 100.0 100.0 100.0 100.0 100.01971 98.2 101.8 104.5 100.6 102.7 101.1 104.7 103.9 111.5 101.6 100.1 103.51972 112.8 101.7 116.7 113.1 104,7 110.4 107.0 219,3 124.6 110,3 103,9 112.61973 134.2 132.6 138.8 135.0 116,7 130.6 118.0 161.7 158.1 129.5 113.6 134.61974 160.6 180.1 190.1 160.6 155.6 163.0 138.9 271.3 181,5 160.6 168.9 195.41975 181.7 190.9 221.1 184.2 182.7 187.0 17'4.0 254.6 210.0 185.9 199.4 233.11976 259,8
Quantum Index1970 100.0 100.0 100.0 100.0 100.0 100.0 103.0 100.0 100.0 100.0 100.0 100,01971 108.5 109.9 112.5 104.7 117.0 109.1 100.5 61.7 80.9 109.8 122.7 107.01972 128.9 151.0 118.5 122.1 154.6 132.0 111.9 139.5 87.6 128.8 126.5 122.71973 145.6 173.1 150.9 139.0 167.8 149.9 139.8 424.0 104.5 148.3 226.1 154.41974 145.4 122.6 132.3 131.8 152.2 137.9 113.3 105.5 84.1 134.6 216.5 141.01975 139.9 147.2 140.8 125.0 160.1 138.2 114.8 198.7 77.1 134.4 191.9 137,71976 148.4
EXPORTSUnit Value Index
1970 100.0 100..0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.01971 99.5 100.5 99.1 102.0 102.9 101.2 105.2 103.4 99.8 105,1 93.9 100.41972 101.7 107.3 108.7 106.0 111.3 106.5 103.1 103.9 106.2 106.6 90.3 104,11973 118.4 129.5 154.0 148.9 135.1 140.3 172.1 233.4 143.6 143,8 102.1 136.01974 165.0 163.8 186.0 179.8 190.4 179.1 252.6 190.9 219.7 185.6 130.5 177,01975 186.6 182.5 221.9 192.9 216.5 198.7 246.2 218,9 218.6 202.7 142.4 196,,61976 215,0
Quantum Index1970 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100,0 100.0 100,01971 172.5 100.6 106.2 101.1 86.0 107.2 70,4 77,6 104.9 96.6 131,2 102.71972 192.5 83.1 129.9 136.8 122.5 135.4 69,5 111,'8 157.1 128.0 194,9 130.21973 220.7 139.5 156.6 159.7 155.6 164.1 151.9 102.0 156,9 162,6 186,5 163.31974 202.8 172.2 130.7 184.0 148.2 170.2 120.9 121,7 196,6 164,7 195.2 179.31975 266.5 104.8 158.9 208.2 146.4 186.5 128.5 88.9 330.5 186.7 182,7 195.71976 226,3
TERMS OF TRADE1970 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100,0 100.01971 101.5 98.7 94.8 101.4 100.2 100.1 100.8 99.5 89.5 106.4 93.8 97.01972 90.1 105.5 93.1 93.7 106.3 96.5 101.0 47.4 85,2 96,6 86.9 92,41973 88.2 97.7 110.9 110.3 115.8 107.4 145.8 144.3 90,8 111.0 89.9 101.01974 102.7 90.9 97.8 111.9 122.4 109.9 181.9 70.4 121.0 115.6 77.3 90.61975 102.7 95.6 100.4 104.9 118.5 106.3 141.5 86,0 104,1 109.0 71.4 84.31976 82.8
Source: National Statistical Service
TABLE 4.1
EXTERNAL PUaLIC OEBT OUTSTANDING INCLUDING UNOIS0 URSED AS OF DEC. 31, 1976OEBT REPAYABLE IN FOREIGN CURRENCY AND GOODS
(IN THOUSANDS OF U.S. DOLLARSI
O E B T O U T S T A N1O I N G I N A R R E A R STYPE OF CREOITCR ----------------------------------- :-----------------------CREDITOR CCUNTRY OISBURSEO :UNOIS SURSEDS TOTAL : PRINCIPAL INTEREST
SUPPLIERS CREOITS ; _AUSTRIA 6,912 985 7,89t -BELGIUM 4,395 _ 4,395CANADA 1,481 - 1.481 -FRANCE 18,938 682 19,820 -GERMANY, FEC.REP. OF 55,215 6,161 61,576 -ITALY 17,304 a48 18,152 -- -- - -JAPAN 2,516 1w427 3,943 - -SPAIN 1,773 - - 1,773 -SWITZERLAND 684 74 762 -UNITED KINGDOM - 6,146 - 6,146 - -UNITED STATES 7.179 - 7,179 - -YUGOSLAVIA 6,478 - 6,478 - -
TOTAL SUPPLIERS CREDITS 1.29,021 lo.5s 139,602 - -
PRIVATE BANK CREDITSAUSTRIA - - 4,788 - _ 4,788 - -CANADA 5,417 - - 5,417 - -FRANCE - - 132.509 2.4w7 135.186 - -GERMANY, FEO.REP. OF 154,430 154,430 - _ITALY 389 - - 389 --- - -JAPAN 40,000 40000LUXEMBOURG 4,825 - --- 4,825 - - -- - -SWITZERLAND 10,000 7 1 17,431 - -UNITED KINGDOM 218,367 - 218,367 _ - _UNITED STATES 275,875 1q4a46 295,120 _ _MULTIPLE LENDERS - 701,000 225,.1o 926,000 - -
TOTAL PRIVATE BANK CREDITS 1,547,600 254*.M, 1,801,953 - -
PUBLICLY ISSUED BONDSUNITED KINGDOM _ 76,133 - -76,133 - -UNITED STATES 30,816 - 30,816 - -MULTIPLE LENDERS 16,000 - 16,000 _ - -
TOTAL PUBLICLY ISSUED BONDS 122,949 - 122,949 - -
PRIVATELY PLACED BONDS -SwEDEN 928 - _ 928
TOTAL PRIVATELY PLACED BONDS 928 - 928 - -
MULTILATERAL LOANSCOUNCIL OF EUROPE 42,046 - 42.046 - -EUROFIMA 1,282 - 1,282 - -
EUROPEAN INVEST BANK - 80,424 19.5D1 99,921 - -IBRD 81,831 V9S8.fi 280,726 - -
TOTAL MULTZLATERAL LOANS -205,580 ?klB*3W 423,975 - - - --
BILATERAL LOANSCANALA 20,288 - 20.288 - -FRANCE 8,014 4-.a 12,951 - -GERMAN DEM. REP. 5,671 18,2B 23.955 - -GERMANY, FED.REP. OF 217,118 755 252,706 - - -HUNGARY 11,417 - 11,417 _ _NETHERLANDS 1.247 ED 1,307 - _ROMANIA 6,764 6,764 - -UNITED STATES 97,223 65.oD 162,223 - -USSR 3,319 - 3,319 - -
TOTAL BILATERAL LOANS 371,061 163.8 534,930 - -
TOTAL EXTERNAL PU8LIC DEBT 2,377,139 647,t B 3,024,337 -
NOTES: tlI ONLY DEBTS WITH AN ORIGINAL CR EXTENDED MATURITY OF OVER OEffYAR APE INCLUDED IN THIS TABLE.12) DEBT OUTSTANDING INCLUDES PRIhCIPAL IN ARkEARS 8UT EXCLUOES iNTEREST IN ARPEARS.(3) THE FOLLOWING UNCCMMITTED PARTS OF FRAME AGPEEMENTS AND STAWRIS ARFl NQT INCLUDED IN THIS TABLE.
BILATERAL LOANSFRANCE * 19,524
TOTAL 19,524
TOTAL UNCOMMITTED FRAME AGREEMENTS AND STANDBYS 19,524
TABLE 4.2i
SERVICE PAYMENTS, COMMITMENTS, OISBURSEMENTS AND OUTSTANDING AMOUNTS OF EXTERNAL PUBLIC DEBT
PROJECTIONS BASED ON DEBT OUTSTANOING INCLUDING UNDISBURSED AS OF OEC. 31, 1976DEBT REPAYABLE IN FOREIGN CURRENCY AND GOODS
(IN THOUSANDS OF U.S. DOLLARS)TOTAL
YEAR a DEBT OUTSTANOING AT s T R A N S A C T I O N S D U R I N G P E R I OD OTHER CHANGESt BEGINNING OF PERIOD :
…------------------- --- -------- --------------------------------------------------- - --- ------- ------------D DISBURSED s INCLUDING COMMIT- : DISbURSE- : S E R V I C E P A Y M E N T S CANCEL- 3 ADJUST-
I ONLY :UNDISBURSED: MENTS : MENTS :--…-----…: ---- -:…------ LATIONS : MENT *
J * I s PRINCIPAL 3 INTEREST : TOTAL(1) 1 (2) (33) 44) 1 (5) (: ) : 7) : (8) 1 49)
1972 1,030,861 1,368*562 540,773 423,861 110,700 61,695 172,395 936 -29901973 1,338,756 1,794,709 629,006 322,821 175,060 90,600 265,660 5Q3 88,3051974 1,540,905 2,336,457 554,125 639,736 186,991 1439362 330,353 10,934 69,4291975 2,037,306. 2,762,086 582,847 853,894 272,033 172,382 444t415 6,757 -70,5071976 2,551,730 2,995,636 454,681 256,414 310,445 176, 867 487,312 .130,704 15,1101977 2,377,139 3,024,338
* * * * $ * * THE FOLLOWING FIGURES ARE PROJECTED * * * * * *
1977 2,37,#139 3,024,338 - 261,424 388,539 191,114 579,653 - 111978 2,250,038 2,635,810 - 160,650 322,249 172,805 495,054 - 51979 2,088,445 2,313,566 - 103,569 447,672 155,002 602,674 - -91980 1,144,331 1,865,885 - 57,150 375,517 130,947 506,464 - -31981 1,425,960 1,490,365 - 24,481 297,167 103,960 401,127 - 21982 1,153,276 1,193,200 - 12,514 317,578 81,609 399 187 -. .. -71983 848,205 8759615 - 6,101 219,521 58,815 278,336 - 41984 634,78S 656,098 - 17,997 174,328 41,270 215,598 - . -61985 478,452 481,764 - 3,181 113,246 29,636 142,882 - 31986 368,390 368,521 - '111 52,259 20,759 73,018 - -31987 316,239 316,259 - 20 48,301 17,200 65,507 - -21988 267,950 267t950 - - 54,355 13,976 68,331 -....- 21989 213,593 213,593 - - 32,031 10,993 43,024 -
1990 181,562 181,562 - - 33,426 8,632 42,058 -1991 148,136 148,136 - 199393 69415 25,808 -1992 128,743 128,743 _ - 15,060 5,209 20,269 -2-1993 113,681 113,681 - 9,442 . 4*372 13,814 -
-994 104,239 1049239 - - a8t106 3,902 12,008 . 11995 96,134 96,134 - 6,712 3,592 10,304 - 11996 89,423 89,423 - 6,946 3,331 1027 -2.
THIS COLUMN SHOWS THE AMOUNT OF ARITHMETIC IMBALANCE IN THE AmoUNT OUTSTANDING INCLUDING UNOISBURSED FROM ONEYEAR TO -THE NEXT. THE MOST COHMON CAUSES OF IMBALANCES ARE CHANGES IN EXCHANGE RATES AND TRANSFER OF DEBTS -FROM ONE CATEGORY TO ANOTHER IN THE TABLE.
Table 5.1: SUMMARY OF THE CEMTRAL GOVERNMENT OPERATIONBLl.
(In Billions of Drachmae)
/3 Budget1970 1971 19T2 1973 1974 1975 1976 - 1977
I. ORDINARY BUDGET BALANCE 6.8 7.9 v 12.8 4.2 5.1 8.1 8.0
Revenues 55.4 61.3 71.5 87.0 104.4 13 7.2 173.9 200.0Direct taxes 10.8 13.2 15.6 18.9 28.4 29. 6 47.9 48.2Indirect taxes 39.8 43.2 50.0 61.8 68.5 91.1 113.0 136.8State enterprises 2.0 1.9 2.0 2.7 2.8 8.4 6.9 7.9Other revenues 2.8 3.0 3.9 3.6 4.7 8.1 6.1 7 .1
Expenditures 48.6 53.4 61.9 74.2 100.2 132.1 165.8 192.0 -fDefense 10.0 io.4 11.5 14.1 22.4 34.3 43.7 43.7Others 38.6 43.0 50.4 60.1 77.8 97.8 122.1 148.3
II. INVESTMENT BUDGET BALANCE -12.0 -14.4 -18.5 -23.8 -22.3 -31.4 -39.4 -43.7
Revenues from Government Investments 0.9 o.6 1.9 o.6 1.0 1.1 0.8 1.3Investment Expenditures 12.9 15.0 20.4 24.4 23.3 32.5 40.2 45.0
III. AMORTIZATION ON GOVERINENT DEBT -3.1 -3.6 -4.2 -4.9 _4.2 -5.6 -8.0
IV. TOTAL FINANCING REQUIREMENT /2 8.3 10.1 13.7 15-9 22.3 31.4 36.9 43.7
Domestic Borrbwing 5.6 7.4 10.5 7.3 17.1 16.o 35.9 31.7Treasury bills 3.4 4.4 7.5 7.3 14.6 16.0 33.4 31.7Government bond issues 2.2 2.4 3.0 - - - - -Bank of Greece loans - 0.6 - - 2.5 - 2.5 -
Externial Borrowing 2.7 2.7 3.2 8.6 5.2 15.4 1.0 12.0
* Transfers from Abroad
/1 Excluding NATO Operations /3 Provisional data./2 Sum of I through III /4 Including reserves of Dr. 10.0 billion/2 ~ /5 Including reserves of Dr. 4.0 billion
Source: Ministry of Finance, General Accounting Office
Table 5.2: CENTRAL COVERNMENT ORDINARY REVEtUESil
(In Billions of Drachmae)
Actuals Budget1970 1971 1972 1973 1974 1975 1976 1977
TOTAL ORDINARY REVENUES 61.3 71-5_ 8. A___4 137.? 173.9 200.0
Total Tax Receipts 5O_6 86 120.7 160.9 185.0
Direct Taxes 10.8 13.2 15.6 18.8 28.4 29.6 47.9 48.2of which:Income tax 7.3 8.9 10.7 12.7 19.5 20.5 25.4 31.5Property transfer tax 1.4 1.7 2.0 1.8 1.8 3.0 4.1 6.1Insurance levy 0.7 0.9 1.0 1.2 1.9 1.9 2.5 3.0Other 1.4 1.7 1.9 3.1 5.2 4.2 4.4 4.1Special Taxes - - - - - - 11.5. 3.5
Indirect Taxes 39.8 *43.2 50:0 61.8 68.5 91.1 113.0 136.8or which:Turnover tax 2.8 3.1 3.7 4,8 5.8 7.6 10.l 12.0Tobacco tax 4.5 4.7 5.2 5,7 6.5 7.9 8.8 9.7Transaction tax 9.8 11.1 13.3 16.2 18,7 26.5 36.3 44.2Customs aid excise 15.3 16.4 19.1 24.2 25.2 35.1 42.0 51.6(Customs duties) (5.5) (5.8) (6.4) (8.1) (9.3) (9.4) (11.1) (12.1)(Excise tax on fuel) (4.7) (5.3) (6.3) (7.3) (5.8) (12.1) (14.2) (16.0)(Excise tax on sugar) (1.2) (1.0) (1.2) (1.3) (1.4) (2.3) (0.2) (1.8)(Turnover taA) (3.5) (3.8) (4.6) (6.7) (7.7) (9.3) (11.6) (13.2)(Other excise tax) (0.4) (0.5) (0.6) (0.7) (1.0) (2.0) (4.9) (8.5)
Vehicle duties 2.5 2.8 3.0 3.8 3.7 5.5 7.7 9.6FSIO receipts 1.6 1.7 2.0 2.5 2.8 2.3 1.7 2.3Other indirect 3.3 3.4 3.7 4.6 5.8 6.2 6.3 7.4
Other Re2 eipts 3/- I.8 8 .9 2 6.14 16.4.2 l-5 £X• i .
1/ Because of rounding, parts may not add to total; excluding special revenue from NATO infrastructure projeictsand the operation of the NATO missile firing installation on Crete Island
2/ Includes stamp taxes in favor of FSIO according to Law 29/1967.3/ Mainly profits or surpluses from public enterprises.
Source: Ministry of Finance, General Accounting Office.
Table 5.3: CENTRAL GOVERNIMENT INVESTMENT EXPENDITURES BY BRANCHES OF ECONOMIC ACTIVITY
(In Billions of Drachmae)
Budget Budget1970 1971 1972 1973 1974 1975 1976 1977
TOTAL INVESTMENT L2 1 20.4 24.5 23.3 32.5 41.0 45.0
Agriculture, livestock, forestryand fishing 0.5 0.8 1.1 1.7 1.3 1.7 2, 3 290
Land Reclamation Works 2.7 2.7 3.3 3.5 3.3 3.4 41 4.3
Industry 02 0.4 1.4 1.6 1 3 1.7 2, 6 2.9
Housing 0DI4 0,5 0.4 0.3 0,2 0.)6 06 0,7
Transportationi (exc ludTigrailways) 4h, 4,8 5-2 6.6 54 7.1 5 6.0
Railways 0, 2 0.3 0.6 0.8 1 o 5 1.9 i7 2,2
Education 1," 1 1.2 2.0 2?6 2.4 4.6 4<3.- 6.4
Health and Social Welfare C0. 2 0,2 0.2 0.5 0.5 o.6 0o7 08
Water supply and seferage 003 0.3 0.8 0.8 1,2 2.6 34 . .3,5
Public Administrat.ion c,3 0,2 0. . 1L. 0o4 0.5 0,9 0 X8
Tourism (,6 1.1 8 0.9 1o2 l.1 08 1.6
Works Departmenta.l I. 83 1o5 1,9 2-5 2.6 3.3 3'5 3.5
Others 0.5 1,2 123 , 2,0 3.4 2.5 6.3
Reserve 5.5 4.0
Source: Ministr'y cf C' oordination
Table5.h: PAYMENTS AND RECEIPTS OF THE CONSUMER GOODS ACCOUN T/
(In Billions of Drachmae)
1968 1969 1970 1971 1972 1973 1974 1975 1976 1977/3
PAYMENTS 4. 8 5.4 5^3 6.4 6.8 20.8 26.1 29.2 34.9 57.2
In domestic currency 3.4 3.6 1.2 4.3 3.8 6.o 2.2 14.6 20.7
Of which:Wheat and barley 0.4 0.2 1.2 1.3 1.7 1.4 3.8 4.7 9.6Olive oil 1.0 0.2 - 0.1 0.4 0.3 0.2 0.9 3.4Other goods 0.2 o.4 0.3 o.4 o.4 o.6 1.0 1.1 2.0Subsidies for exports - - - - - - - - -Duties 0.8 1.6 1.1 1.3 1.0 1.1 2.0 2.5 1.7Other payments 1.0 1.2 1.3 1.2 0.3 2.6 2.2 5.4 3.9
In foreign exchange_2/ 1.4 1.8 1.4 2.1 3.0 14.8 16. i4.6 14.2
RECEIPTS 6.3 5.o 5.3 5. 6.1 8.2 19.8 22.6 18.4 43.1
Of which:Cash 2.8 2.8 2.7 2.4 2.2 3.8 5.4 5.2 6.5Receipts from exports of agricultural products 1.3 0.2 0.1 0.2 0.1 - - 0.5 1.5Special transfers from the Government Budget
for Deficit financing - 0.4 - - - 0.9 1.6 - -Receipts from oil refinery 0.4 0.8 0.8 0.9 1.5 1.2 3.5 8.4 4.2Receipts from sales of animal feed 0.9 1.2' 0.9 1.1 1.5 1.6 3.7 3.7 3.8Other 0.9 O.4 0.8 0.5 o.8 0.7 5.6 4.8 2.4
CHANGE IN DEBIT BALANCE -1.5 -o.4 _ +1.3 +0.7 +12.6 +6,3 +6.6 +16.5 +14.1
1/ Excluding transactions relating to tobacco, currants, and sultanas. Because of rounding, parts may not add tb total.2/ For agricultural goods, crude oil, and other goods.37/ Budget estimates.
Source: Ministry of Finance
Table 5.5: CURRENT REVENUE AND EXPENDITURE OF LOCAL AUTHORITIES
(Tn Millions of Drachmae)
1960 1965 1970 1971 1972 1973 1974 1975 1/ 19761'
REVENUE1. Direct taxes 388 403 747 779 836 1143 1077 1065 10802. Indirect taxes 310 610 1019 923 1122 830 825 905 11003. Income from property and
entrepreneurship 180 339 516 606 640 681 780 930 10354. 'Other revenue 59 50 49 108 87 199 190 162 1805. Transfer from Central Government - 466 745 725 609 623 729 1008 19006. Purchases of goods and services by
household;and enterprises 334 519 1271 1482 1843 1990 2214 2500 2950
TOTAL 1271 2387 4347 4623 5137 5466 5815 6570 8245
EXPENDITURE1. Current expenditures on goods
and services 888 1536 2858 3177 3319 3870 4417 5000 6629(a) Wages and salaries 461 881 1718 1834 1834 2242 2778 3350 4550(b) Other purchases 427 655 1140 1343 1485 1628 1639 1650 2079
2. Pensions and grants to households 90 153 250 290 340 411 469 625 7503. Contributions and transfers to
central government 3 1 2 48 25 41 67 92 60
TOTAL 981 1690 3110 3515 3684 4322 4953 5717 7439
Surplus (+) or Deficit (-) +290 +697 +1237 +1108 +1453 +1144 +862 +853 +806
1/ Provisional estimates.
Source: Ministry of Coordination, National Accounts Service.
Table S.6 GROSS FIXED CAPITAL FORMATION OF PUBLIC ENTERPRISES!/
(In Millions of Drachmae)
Budget
1970 1971 1972 1973 1974 1975 1976/2 1977
TOTAL INVESTMENT 8,079 1 1,65 14,413 18,385 19,882 14,736 - -_
Public Power Corporation 4,598 6,650 8,017 11,994 13,297 8,318 9.280 11,850
Hellenic Telecommunications Company 2,614 3,384 4,589 4,851 4,510 4,252 4,230 7,092
Laborers Housing Authority 142 206 186 113 127 174 208 - -
Greek Post Office 15 15 36 88 45 49 _
Hellenic Broadcasting & Television 130 312 450 328 48 197 _ _
Metropolitan Transport of Athens 2 - 33 - - - _ _ _ _
Hellenic Railways Organization 4 5 5 486 1,166 1,362 1,035 - -
ptolemaid Lignite Company 356 862 455 325 399 328 - - _ -
Azote Fertilizer Company 218 225 642 376 290 56 _ - _
1/ Excluding the Sugar Refinery and Olympic Airways
2/ Provisional-- Not availableSource: Ministry of Finance
Table 5.7: CENTRAL GOVERNMENT CURRENT EXPENDITURES
(In Billions of Drachmae)
1970 1971 1972 1973 1974 1975 1976 1977Budget
CURRENT EXPENDITURE 48.3 53.4 61.9 74.3 100.2 132.1 165.8 192.0
Adjustments
NATO Operations 0.5 0.2 0.9 1.4 1.7 0.8 0.7 0.9Others = 3.1 3.6 3.9 4.9 4.2 5.1 5.6 8.0
CURRENT EXPENDITURE= 51.9 57.2 66.7 80.6 106.1 138.0 172.1 200.9/1(Sectoral Distribution)
Administr7tion - 24.6 28.3 33.1 39.8 51.1 62.3 75.3 93.5Defense 47 10.5 10.6 12.4 15.5 24.1 35.1 44.4 44.6Labor & Social Welfare 6.6 7.3 9.1 10.6 11.9 16.6 22.3 26.2Education 5.0 5.6 6.5 8.2 10.6 12.9 16.1 20.9Public Works, Transport, etc.5' 5.1 5.3 5.5 6.4 8.3 10.7 13.5 15.0Others 6/ . 0.1 0.1 0.1 0.1 0.1 0.4 0.5 0.7
1./ Theve exy-enditiuxes :si>jl t. amounts doTbzirsed by the ministries as recorded by Generalg-. )t)f:oe tf t Jl. vlist-;--y of inflnc.-
lnI ' t i~ p,, ubiic e,~-2.1 IIJ d x .t.u.h: 2 > ree.v
5f Eo';;>i- tures W-f tb .hi,} I 3 P:dhy nspo:t- : fi(5.omrnz ¢ tA P; Agriculture and s.,;arine62/ Pa- '1..a;we-;L' arad ŽYt.: o th e Ya.b'.S...de'.:t of the. State.
Source. ^wa1 AC:co-a O) ic e E,ate 211.'g t & Research divisions
Table 5.8: CENTRAL GOVERNMENT ORDINARY BUDGET EXPENDITURE
(In Billions of Drachmae)
Budget1973 1974 1975 1976 1977
Personnel Remunerations and Pensions 34.2 46.1 56.1 68.9 81.3
Public Debt 10.0 11.7 14.8 18.9 23.5
(of which Amortization) (4.9) (4.2) (5.1) (5.6) (8.0)
Refund of Revenue collected infavor of third parties 5.8 6.0 7.5 9.3 10.1
Reimbursement of amountsunduly collected 4.2 5.3 8.0 8.7 5.3
Subsidies to Agriculture 4.8 5.4 5.6 6.8 7.2
Grants 6.6 9.3 12.6 19.2 18.4
Expropriations 0.1 0.4 0.5 0.4 0.5
Other Consumption Expenditures 13.5 20.2 32.1 39.2 43.7
Reserve Funds - - - - 10.0
TOTAL 79.2 104.4 137.2 171.4 200.0
1/ Excluding NATO operations etc.
Source: Ministry of Finance, General Accounting Office.
Table 5.9 CONSOLIDATED PUBLIC SECTOR: DEFICIT AND FINANCING
(In Billions of Drachmae)
1974 1975 1976 , 1977
1. TOTAL DEFICIT 40.0 39.3 55.5 62.2
% of GNP 6.8 5.7 6.7 6.5
Central GovernmentDeficit 19.1 27.4 32.1 37.0
Investment 23.3 32.5 40.2 45.0
Savings 4.2 5.1 8.1 8.0
Public Enterprises Deficit 15.7 6.6 7.3 13.4
Investment 19.1 14.7 15.31- 20.7
Savings 4.2 8.1 8.0 7.3
Consumer Goods A/C Deficit 6.3 6.6 16.5 14.1
Tobacco, Currants andSultanas A/C Deficit 2.4 2.4 2.5 2.0
Less:Capital Revenues 1.0 1.1 0.8 1.3
Central Government Subsidiesto Public Enterprises 2.5 2.6 2.1 3.0
2. FINANCING (NET) 40.0 39.3 55.5 62.2
Domestic (net) 30.4 27.8 58.2 55.7
Treasury Bills 14.6 16.0 33.4 31.7
Bank of Greece 13.1 9.3 21.7 16.2
Commercial Banks 6.1 5.6 7.5 9.9
Others - 0,9 0.2 2.8
Amortization (-) 3.4 4.0 4.6 4.9
External (net) 9.6 11.5 -2.7 6.5
1/ Budget estimates2/ A small part represents staff estimates. _Source: Tables 5.1,5.4,5.6, Ministry of Finance and Bank of Greece.
Table 6.1: MONEY AND QUASI-MONEY I
(In Billions of Drachmae)
1970 1971 1972 1973 1974 1975 1976
Money Supply 54.3 61.8 76.1 229l 111.5 128.9 160.0
Currency in circulation 38.9 43.0 50.6 64.9 80.2 91.7 111.7
Sight Deposits 1/ 15.4 18.8 25.5 28.2 31.3 37.2 48.3
Quasi-Money 2 101.2 125.4 158.2 177.4 216.4 281.9 349.1
Savings Deposits 69.6 87.5 106.7 116.5 141.5 189.o 239.7
Commercial banks (45 14) (57.9) (71.9) (79.1) (95.6) (127.8) (159.0)
Postal savings banks (21.1) (25.9) (30.3) (32.0) (38.7) (51.2) (65.3)
Other financial institutions ( 3-1) ( 3.7) ( 4.5) ( 5.4) ( 7.2) (10.0) (15.4)
Time Deposits 15.9 21.5 28.1I 32.3 39.9 52.7 70.3
Others - 15.7 16.4 23.1 28.6 35.0 40.2 39.1
1/ Central Government deposits with the Bank of Greece not included
2/ As defined in International Financial Statistics
3/ Includes import deposits and other restricted deposi-ts at the Bank of Greece.
Source: Bank of Greece, Monthly Statistical Bulletin, and IFS
Table 6.2: PACTORS AFFECTING THE MONEY SUPPLY
(In Billions of Drachmae)
1970 1971 1972 1973 1974 1975 1976*
CHANGES IN MONEY SUPPLY 5.4 _7_ 14.3 1X-1 18.3 31.1
Public Sector 4.3 .3 2.2 19.2 17.0 36.2Central Government4/ 3.9 6.7 1.8 16.7 17.0 14.9 37.4Public entities - 1.5 - 0.8 - 3.7 - 3.3 - 7.0 -3.8 -8.0Public enterprises 1.9 3.4 4.1 5.8 5.7 5.9 6.9
Counterpart Funds - 3.0 - 5.1 - 8.2 - 7.0 - 8.2 -14.0 -28.1Government foreign borrowing 3.0 2.5 T7 3.3 21.2 3.7Accumulations 2/ - 6.o - 7.6 -14.3 -10.3 -17.1 -35.2 -31.8
Private Sector 2.8 0.2 6.3 17.0 10.2 3.7 12.7Loans and advances 2 a. 25.2 33.2 30.9 TOT 59-. 75.2Securities 0.4 .O4 1.2 1.2 3.5 2.3 4.1Savings deposits -13.6 -17.9 -19.2' -9.8 -25.0 -47.5 -50.6Time and restricted deposits - 4.8 -7.5 -8.9 -5.3 - 8.9 -18.o -16.0
Foreign Sector 2.1 4.5 18.5 1.8 0.7 8.6 3.1Foreign exchange holdings 1.9 5- 5 19.3 2.7 - 1.1 7.65Clearing accounts 0.2 - 1.0 i 0.8 -0.9 1.8 1.0 -1.9
Other Items - o.8 1.4 4.5 -13.9 - 0.1 9.5 7.1
* Provisional estimates
I Excluding foreign borrowing.2/ Mainly liabilities from foreign exchange deposits owned bv Greek serqpn and workers.
Source: Bank of Greece, Monthly Statistics Bulletin
1/Table 6,3: TOTAL OUTSTANDING BANK CREDIT
(In Billions of Drachmae; End of Period)
1970 1971 1972 1973 1974 1975 1976
TOTAL OUTSTANDING CREDIT 134.4 162.8 199.1 237.7 286.3 353.8 440.1
BY SOURCE:Bank of Greece 42.9 50.1 59.2 78.4 96.6 120.9 139.5Commercial banks 57.8 71.6 88.6 98.4 116.9 150.4 202.8HIDB 2/ 4.3 4.1 3.9 3.6 4.0 5.4 6.4National Mortgage Bank 1.0 2.1 3.8 5.6 6.3 8.3 9.9Agricultural Bank 5.8 7.1 8.3 9.4 11.7 14.1 19.2Consignations and Loans Fund, PostalSavings Bank, and Investment Banks 21.4 26.6 33.9 40.8 49.0 52.7 60.0
Other Funds 3/ 1.1 1.3 1.4 1.6 1.7 2.0 2.3
BY SECTORS AND BRANCHES:Private sector 113.3 138.5 171.7 202.6 243.2 302.8 378.1of which: Agriculture 17.7 21.4 26.4 33.7 44.5 56.7 70.2
Manufacturing 48.8 60.o 72.8 84.7 104.5 135.4 167.4Trade 14.9 16.6 18.7 22.4 24.5 31.2 41.9Housing 17.6 21.7 27.5 31.8 33.1 37.0 43.5
Other 4 21.1 24.3 27.4 35.1 43.1 51.0 62.0of wha~ : Farm price support 4.8 4.8 3.9 4.0 6.3 7.6 10.1
1/ Excluding credit to the Central Government.2/ Hellenic Industrial Development Bank.3/ Government funds granted through the Agricultural Bank and the Mortgage Bank for long-term loans.T/ Public enterprises, Public entities and Government agencies purchasing agricultural goods.
Source: Bank of Greece, Monthly Statistical Bulletin
Table 6.4: DEPOSITS WITH COMMERCIAL BANKS AND SPECIAL CREDIT INSTITUTIONSL
(In Billions of D.rachmae)
1970 1971 1972 1973 1974 1975 1976
TOTAL DEPOSITS 107.6 135.5 169.8 188.1 224.0 293.0 373.5
By Type of DepositsSight Deposits 2/ 13.6 16.4 22.3 25.2 27.5 32.5 42.5Savings Deposits 69.6 87.5 106.7 116.5 141.5 189.0 239.7Time Deposits 15.9 21.5 28.4 32.3 39.9 52.7 70.3Restricted and Other 8.5 10.1 12.4 14.1 15.1 18.8 21.0
By Type of InstitutionsCommercial Banks 74.4 95.1 121.6 135.2 160.9 209.4 266.2Special Credit Institutions 33.2 40.4 48.2 52.9 63.1 83.6 107.3
1/ The Agricultural Bank of Greece, the Mortgage Bank, the Consignment and Loans Fund, and the Postal SavingsBank. Deposits include those of public entities as well as those of individuals and private enterprises.
2/ Including sight deposits of public enterprises and public entities.
Source: Bank of Greece, Monthly Statical Bulletin.
Table 6.5: INTEREST RATES ON BANK DEPOSITS(Percent Per Annum)
IN DRACHMAE
1963 1966 1971 1973 1973 1974 1974 1975 1975 1975 1976 1977FEB. SEPT. FEB. MAY JULY FEB. MAY JUNE JULY OCT, NOV. JAN.
SIGHTIndividuals & private enterprises 1.5 0.75 0.75 0.75 0.75 0.75 0.75 0.75 0,75 - _Banks 1.0 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 - - -Current deposit accounts _ - 4 4 4 4 8 8 7.5 7, 6.5 -
SAVINGSUp to 100, 000 drs.with Commercial Banks 4.5 5 5 5.5 7 9 9 9 8.5 7.5 7 -with Agricultural Bank 4.75 5.25 5.25 5.75 7.25 9.25 9.25 9.25 8.75 7.75 7.25 -with Postal Savings Bank 5 5.5 5.5 6 7.5 9.5 9,5 9.5 9 8 75 -
From 100,000 to 200,000 drs 4 4.5 4.5 - - - - - - - -On 3 months' notice 5.5 6 6 6.5 8 10 10 10 9.5 9 8,5 -Housing loan deposit scheme operated byNational Mortgage Bank of Greece 4.5 5 5 5.5 7 9 9 9 8.5 7.5 7 -
TIMEIndividuals and private enterprises
- 3 to 6 months 5.25 5.75 5.75 6.5 8 10 10 9.5 9.5 9 8.5 -- 6 months to 1 year 5.75 6.25 6.25 6.75 8.5 10.5 10.5 10 10 9.5 9- 1 year to 2 years 6 6.5 6.5 7.5 9 11 11 10.5 10.5 10 9.5 -- 2 years and over 6.5 7 7 7.5 9 11 11 10.5 10.5 10 9.5
Banks 3 3 3 3 3 3 3 3 3 3 3Redeposits by Postal Savings Bank
- 3 to 6 months - - - - - - - - - -- 6 months to 1 year 6 6.5 6.5 7 8 10 10 9.5 9.5 8.5 8 -- 1 year to 2 years 6.25 6.75 6.75 7.25 8.5 10.5 10.5 10 10 9 8,5 -- 2 years and over 6.5 7 7 7.25 8.5 10.5 10.5 10 10 9 8.5 -
PUBLIC ENTITIES 4 4 4 4 4 5 5 5 5 5 5
Source: Bank of Greece, Monthly Statistical Bulletin
Table 6.6: INTEREST RATES ON BANK DEPOSITS(Percent Per Annum)IN FOREIGN EXCHANGE
1967 1968 1968 1968 1969 1970 1971 1973 1973 1974 1977Oct. May June July Oct. Apr. July June Oct. Jan. Jan.
UNDER LAW 2687/53- 6 months to I year 5 5 6 6 6 7 7 7 7 7 7- 1 year to 2 years 5.5 5.5 6.5 6.5 6.5 7.5 7.5 7.5 7.5 7.5 7.5- 2 years and over 6 6 7 7 7 8 8 8 8 8 8
CONVERTIBLE SIGHT ACCOUNTS 1,5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5
OTHER TIME DEPOSITS- 3 to 6 months 4 4 4 5.5 5.5 5.5 5.5 5.5 5.5 5.5 5.5- 6 to 12 months 4.5 4.5 4.5 6 6 6 6 6 6 6 6- 12 to 24 months 5 5 5 6.5 6.5 6.5 6.5 6.5 6.5 6.5 6.5- 24 months and over 5.5 5.5 5.5 7 7 7 7 7 7 7 7
DEPOSITS BY GREEK SEAMEN AND WORKERS ABROADSight 0.75 1.25 1.25 1,25 3 3 3 3 3 3 3Savings 5.5 6 6 6 6.25 6.25 6.25 6.75 7 7.5 7On 3 months' notice time 6 6.5 6.5 6.5 6.75 6.75 6.75 7.25 7.5 8 7.5Time
- 3 to 6 months 5.75 6.25 6.25 6.25 6.75 6.75 6.75 7.50 9 10 9- 6 to 12 months 6.25 6.75 6.75 6.75 7.25 7.25 7.25 8 9.5 10.5: 9.5
12 to 24 mTonths 6.5 7 7 7 7.50 7.50 7.50 8.25 10 11 1024i months and over 7 7 5 7.5 7.5 7.75 8 8 8.50 10 11 10
HOUSISNG LOAN DEPOSIT SCHEME OPERATED BY 6.25 6.75 7 7.5 7NATIONAL MVIORTGACE 6AA W OF GREECE 5.5 6 6 6 6.25 6.25 to to to to to
7.25 8 9.5 9.5 9
SourceQ Bank of Greece. Monthl_ Statisk-.1cal Bulletin
Table 6.7: INTEREST RATES ON BANK CREDITS
(Percent per Annum)
1970 1973 1973 1973 1974 1974 1975 1977CATEGORIES JAN. MAY JULY NOV. FEB. SEPT. OCT. JAN.
Bank of Greece rediscount rate 6.5 7.5 9 9 11 8 10 11
IndustryBills discounted 8 8 10 10 12 12 11.5 12Working capital 8 8 10 10 12 12 11.5 12Long-term loans 7.5 7.5 9.5 8.5 10.5 10.5 10.5 10.5
HandicraftFor raw materials & equipment)Other credits ) 8 8 10 10 12 12 11.5 12
Import and domestic trade 11 11 13 13 14 14 13.5 14
Export and Tobacco trade 6 6 8 8 9 9 8.5 9
Penalty rates 8-13 8-13 10-15 10.5-15 12.5-16 12.5-16 12-15.5 12.5-16
Credit to farmers l/Short-term cultivation loans to:individual farmers 5 5 5 5 7 7 7 7.5cooperatives 4.25 4.25 4.25 4.25 6.25 6.25 6.25 6.75unions of cooperatives 4 4 4 4 6 6 6 6.5Short-term loans on collateral to:individual farmers 6 6 6 6 8 8 8 8.5cooperatives 5.25 5.25 5.25 5.25 7.25 7.25 7.25 7.75union of cooperatives 5 5 5 5 7 7private agroindustries 2/ - _ _ 7 7 9
Medium- and long-term loans for:irrigation works and livestock 2 2 2 2 3 ' 3 3 3.5farmers' housing (normal) 2 3 3 3 5 5 5 5individual farmers 4 4 4 4 6 6 6 6.5cooperatives 3.5 3.5 3.5 3.5 5.5 5.5 5.5 6union of cooperatives 3.5 3.5 3.5 3.5 5.5 5.5 5.5 6private agroindustries 2/ - 3 9Penalty rates on overdue loans (by Ag. Bank) 7 7 7 7 9 9 9 9.5
Housing loans 7-8 7-8 9-10 8.5-11 8.5-11 8.5-11 8.5-10 8.5-10.5
Source: Bank of Greece, Monthly Statistical Bulletin
1/ In addition to interest,commissions ranging from 0.25 to 1.0 percent are charged.2/ Source: Agricultural Bank of Greece
Table 7.1: LAND CLASSIFICATION
A. AREA CLASSIFICATION
1969 1975Million Of Million 0Of
.Hectares % _Hectares %
Total Area 13.2 100 13.2 100
Farm Land 3.9 29 3.90 29.5Pasture Land 5.3 4o 5.37 40.6Forest Land 2.5 19 2.64 19.9Non-Productive Land.1/ 1.5 12 1.31 10.0
B. FARM LAND UTILIZATION
1969 1975 _
Million Of Million OfHectares % Hectares %
Total Fam Land 3.90 100 3.90 100
Field Crops 2.55 65 2.43 62.3Vineyard 0.22 6 0.2Q 5.1Olive Groves 0.50 13 0.58 14.9Citrus 0.04 1 0.05 1.3Deciduous Fruit 0.11 3 0.13 3.3Fallow Land 0.48 12 0.51 13.0
C. CLASSIFICATION OF FIELD CROPS
1972 1975Crop Area Irrigated Area Crop Area Irrigated AreaMill. Mill. Mill. Mill.Hect. % Hect. % Hect. % Hect.
Totai2/ 3.42 100 0.80 100 3.39 100 0.84 100
Annual Crops 2.47 71 0.56 70 2.32 68.4 0.49 69.0Tree Plantations 0.70 20 0.14 17 o.76 22.4 0.15 97.9
Vegetable & Horti-cultural Crops 0.10 3 0.08 10 0.11 3.2 0.09 10.7
Vienyards (all Grapesincluded) 0.21 6 0.02 3 0.20 5.9 0.02 2.4
l/ Including inland waters, barren and built areas.
2/ Total farm land minus fallow land
Source: Ministry of Agriculture, National Statistical Service of Greece.
Table 7.2: DISTRIIUTION OF LAND HOLlDINGS
AverageAverage Number Of
Stze Group of the Number of lholdings Number of Parcels Area of Holdings Area Of Parcels PerTotal Area of 1961 1971 191 1971 1g961 1971. Parcel(ha.) HoldingIloldinrs (Ila.) '000 % TiZ ( 'Oo0 % '0 WX ha.7F 1000 ha. 1 9 1961 1971
Below 1.0 247.5 22.5 200.9 20.7 674.6 8.6 513.4 8.1 125.1 3.5 102.7 3.0 0.18 0.20 2.7 2.6
1.0 to 5.o 640.3 58.1 561.6 57.9 4,h20.6 56.3 3,468.7 54.8 1,605.0 15.] 1,h21.4 41.5 0.16 0.41 6.9 6.2
5.0 to 10.0 169.3 15.4 157.9 16.3 2,023.0 25.8 1,650.7 26.0 1,112.6 31.3 1,050.8 30.7 0.55 0.6h 11.9 10.5
10.0 to 50.0 44.8 4.1 49.3 5.] 727.7 9.3 668.5 10.6 662.9 18.6 761.6 22.3 0.91 ].1. 16.2 13.6
Above 50.0 .6 0.0 .8 0.0 9.8 0 1 23.1 0.4 53.2 1.5 84.9 2.5 5.143 3.67 16.3 28.9
Total 1,102.5 100.0 970.6 100.0 7,855.8 100.0 6,334.3 100.0 3,558.9 100.0 3,421.h 100.0 o0l45 0.54 7.1 6.5
Source: National Statistical Service of Oreece
Table 7.3: CROP AREAS(Thousand of Hectares)
1960 1970 1971 1972 1973 1974 1975 1976
CERALS
Wheat 1,142 920 960 904 865 934 910 920
Barley 181 343 379 394 411 419 404 398
Maize 211 161 163 164 166 138 135 132
Oats 128 77 79 76 74 79 71 67
Rice 14 16 15 15 17 20 20 19
Others - 8 9 7 6 5 5 5
FOOD LEGUMES 104 67 65 66 65 60 55 47
INDUSTRIAL CROPS
Tobacco 91 98 89 84 83 83 98 121
Cotton 165 132 130 167 147 154 135 149
Sugar Beet - 26 24 22 25 28 45 44
FEED & FODDER CROPS
Feed Legumes .48 38 38 32 31 28 27 24
Cereals fodders 581/ 31 33 34 32 37 38 35
Lucerne 701/ 194 i86 191 218 223 221 219
Other hay crops 192-/ 129 130 120 118 119 107 100
VEGETABLES ETC.
Potatoes 38 54 50 49 53 52 54 57
Tomatoes 27 31 33 32 34 38 4C 31
Other vegetables 55 70 69 69 70 69 70 67
Melons 29 33 34 34 32 29 32 29
1/ 1961
Source: Ministry of Agriculture.
Table 7.4: CROP OUTPUT
(Thousand of Tons)
1960 1970 1971 1972 1973 1974 1975 1976
CEREALS
Wheat 1,692 1,969 1,933 1,919 1,738 2,274 2,078 2,351Barley 232 778 795 873 857 983 924 955Maize 281 528 585 615 650 538 540 555Oats 149 108 112 108 102 118 106 105Rice 57 77 73 77 90 103 102 84Others - 9 11 8 7 7 7 8
FOOD LEGUMES 112 99 97 94 93 87 80 72
INDUSTRIAL CROPS
Tobacco (Oriental) 61 80 73 73 77 71 103 119Cotton 184 308 330 398 310 357 364 320Sugar Beet - 1,503 1,252 1,225 1,350 1,415 2,660 3,000Tobacco (Burley) - 15 15 12 14 11 14 16Olive Oil 79 198 183 249 192 237 257 225
FEED & FODDER CROPS
Feed Legumes 47 45 42 37 37 32 33 32Cereal Fodders 149 90 102 99 100 126 121 113Lucerne 596 1,808 1,781 1,930 2,167 2,272 2,300 2,227Other hay crops 316 354 377 329 352 337 323 324
VEGETABLE ETC.
Potatoes 425 796 727 731 787 795 868 933Tomatoes 455 1,021 1,168 1,046 1,300 1,590 1,647 1.109Other vegetables 604 875 909 930 958 969 973 976Melons 375 659 701 724 731 652 855 760
FRUITS
Currants & Sultanas 125 170 176 145 133 196 155 141Citrus 295 560 526 577 582 727 690 712Apple 90 207 225 183 233 200 250 255Peaches 61 160 207 238 268 250 301 333Pears 34 109 104 120 120 88 124 107Tables & wine grapes - 841 866 859 942 1,096 949 966Table wines 21 42 77 61 80 - -
Source: Ministry of Agriculture.
Table 7.5: CROP YIELDS, NATIONAL AVERAGES
(Tons per Hectare)
1960 1970 1971 1972 1973 1974 1975 1976
Cereals
Wheat 1.48 2.14 2.01 2.12 2.01 2.43 2.28 2.56Barley 1.28 2.27 2.10 2.21 2.08 2.35 2.28 2.40Maize 1.33 3.28 3.59 3.74 3.92 3.91 4.01 4.19Oats 1.17 1.40 1.42 1.43 1.37 1.49 1.50 1.57Rice 3.79 4.91 4.97 5.18 5.30 5.03 5.03 4.45Others 0.93 1.09 1.20 1.14 1.17 1.40 1.40 1.60
Food Legumes n.a. 1.46 1.49 1.42 1.43 1.45 1.46 1.53
Industrial Crops
Tobacco, oriental leaf 0.67 0.85 0.88 oQ87 0.99 0.90 1.11 0.98Tobacco, burley - 2.69 . 2.82 2.72 2.89 2.92 2.60 2.86Sugar beet - 58.20 53.22 54.81 54.43 50.35 59.78 68.18Seed cotton 1.11 2.34 2.52 2.38 2.11 2.36 2.73 2.14
Feed and Fodder Crops
Feed legumes 0.81 1.18 1.11 1.15 1.19 1.14 1.22 1.33Cereal hay 2.92 2.91 3.10 2.91 3.12 3.40 3.18 3.23Lucerne 8.51 9.30 9.56 10.10 9.97 10.18 10.44 10.19Other hay crops 2.70 2.74 2.89 2.74 2.98 2.83 3.02 3.23
Vegetables, etc.
Potatoes 10.99 14.82 14.64 14.82 14.76 15.25 16.08 16.25Tomatoes 16.60 33.32 35.23 33.15 38.46 41.62 41.07 36.12Other vegetables 10.98 12.40 13.17 13.48 13.69 14.04 13.90 14.57Melons 12.91 19.91 - 20.82 21.51 22.B4 22.48 26.72 26.40
Source: Ministry of Agriculture
Table 7.6: LIVESTOCK PRODUCTS
(Thousand Tons)
1966 1970 1971 1972 1973 1974 1975 1976
Beef and veal 63 88 87 88 91 110 123 109
Sheep and goats 89 90 96 99 106 112 116 115
Pork 42 55 66 73 91 104 110 111
Poultry 36 68 83 91 103 109 115 119
Other 5 5 5 6 8 9 8 6
Total Meat 235 306 337 357 399 444 472 460
Milk 1,223 1,344 1,395 1,443 1,570 1,635 1,692 1,704
Butter 8 7 7 7 7 7 7 7
Cheese 116 122 129 134 139 142 147 155
Eggs 88 101 110 109 103 108 108 118
1/ Including buffalo meat
Source: Ministry of Agriculture.
Table 7.7: IMPORTS OF SELECTED AGRICULTURAL PRODUCTS I/(Quantity in Thousands of Tons; Value in Millions of US DollarE)
1968 1970 1971 1972 1973 1974 1975 1976quantity Value Quantity Value Quantity Value Quantity Value Quartity Value Quantity Value Quantity Value Quantity Value
Food and live animals: 2/ 617.4 168.1 520.4 189.1 862.1 234.4 570.1 234.3 903.8 388.1 1,765.4 479.8 1,432.8 472.5 029.0 455.9of which: cereal products 2/ 156.7 9.3 110.3 7.3 441.2 29.2 73.4 45.5 383.3 29.9 1,331.3 201.2 1,012.3 141.9 635.7 94.6
refined sugar 88.9 6.2 19.8 2.1 20.2 2.8 82.1 18.3 63.0 16.4 86.7 35.4 79.8 60.3 0.2 0.1meat (incl. live animals) 4/+ 134.1 77.2 122.3 101.4 114.5 105.8 95.2 103.9 120.2 183.4 44.4 64.5 55.7 70.0 100.8 134.5dairy products (milk, butter,cheese) 59.6 22.1 69.6 25.3 73.9 28.3 69.4 32.7 94.0 49.0 104.2 60.8 85.5 59.6 83.2 57.0
Other commodities: - 31.3 - 59.6 - 57 .4 - 71.0 - 123.2 _ 136.6 - 159.9 - 164.1of which: wool 8.7 16.9 11.7 22.0 16.6 26.8 16.0 30.9 16.7 54.0 11.4 47.2 23.9 72.0 20.1 66.5
Total Agricultural products: 5/ - 199.4 - 248.6 - 291.8 - 305.3 - 511.3 - 616.4. - 632.4 - 620.0
On the basis of arrivals and shipments.2/ SITC revised.3/ Wheat, barley, maize and wheat flour.4/ Pig, sheep, beef, veal and poultry meat plus ham and other processed meat.5/ Including processed.
Source: National Statistical Service and Ministry of Agriculture
+ Valute of imported live animals is included;Quantity of imported live animals is not included;
Table 7.8: EXPORTS OF SELECTED AGRICULTURAL PRODUCTS I/
(Quantity in Thousands of Tons; Value in Millions of US Dollars)
1968 1970 1971 1972 1973 1974 1975 1976Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value
Food and live animals: 2! 716.4 113.7 749.9 147.3 892.9 167.7 963.5 217.2 827.3 303.1 903.3 392.0 1,450.2 511.3 1,743.0 570.9of which: Fresh fruits or dried, nuts
and fresh vegetables 396.5 75.5 466.6 91.9 427.0 89.1 504.1 107.8 411.8 164.8 550.9 222.0 693.9 259.0 762.3 282.5Vege'tables, preserved andfruits preserved 70.8 18.5 146.8 37.6 180.6 47.8 265.1 77.6 292.6 110.7 235.5 136.3 312.4 151.1 384.3 179.5
Beverages and Tobacco: 2! 159.4 120.8 205.2 112.3 175.2 106.2 185.8 138.9 169.5 116.1 140.1 198.0 163.4 187.0 157.1 215.6of which: Alcoholic beverages 89.2 8.9 141.9 19.7 115.7 19.6 111.3 24.8 123.0 38.9 72.5 26.7 112.3 31.5 95.5 37.2
Tobacco leaves 70.2 99.9 63.2 92.5 59.3 86.5 74.3 113.9 45.8 76.3 67.2 170.3 50.6 155.2 55.6 177.7
Other commodities: - 67.1 - 63.5 - 77.0 - 76.8 - 129.1 - 120.4 - 113.2 - 111.4of which: Hides and skins, undressed 6.9 13.1 6.8 14.2 8.1 17.3 7.5 22.7 6.2 30.9 7.4 36.6 8.4 37.6 8.2 43.2
Cotton 53.4 34.7 70.5 41.2 76.9 52.8 48.6 39.7 71.1 78.2 34.5 52.7 32.6 32.0 35.8 44.5
Total Agricultural products: - 301.6 - 323.1 - 350.9 - 432.9 - 548.3 - 710.4 - 811.5 - 897.9
1/ On the basis of arrivals and shipments.2/ SITC revised3/ Including processed.
Source: National Statistical Service and Ministry of Agriculture
Table 8.1: VALUE ADDED IN INDUSTRY
(In Millions of Drachmae, at Current Prices)
1970 1971 1972 1973 1974 1975.11 1976 /2
Food, drink and tobacco 9,317 10,173 11,177 14,139 17,548 21,006 25,620Textiles 6,937 e 8,363 9,854 14,017 16,821 20,258 26,620Clothing and footwear 4,627 5,165 5,911 7,524 8,778 10,431 12,700Wood products and furniture 3,051 3,483 3,936 5,649 5,585 7,031 7,720
Paper, printing and publishing 2,268 2,335 2,685 3,508 4,816 5,383 5,890Chemicals and allied trades 5,495 6,535 6,997 10,726 15,624 19,036 20,730Stone, clay and glass 3,736 4,082 4,146 5,495 6,951 7,813 9,730Basic metal industries 3,638 3,160 3,165 5,983 6,834 6,943 8,130
Metal manufacture, engineering 6,298 7,433 8,819 12,022 14,196 13,724 17,330and electric goods
Transport equipment 2,595 3,327 3,508 4,783 6,247 6,815 7,700Other manufacturing 1,304 1,515 1,740 2,305 2,753 3,281 4,130
Total Manufacturing 49,266 55,571 61,938 86,151 106,153 121,721 146,300
Mining and Quarrying 3,541 4,220 4,915 6,047 6,739 8,053 9,700
Electricity, gas and water works 5,152 5,649 6,274 7,109 2,071 9,292 11,200
Construction 23,017 26,258 33,574 42,740 37,938 42,883 52,900
Total Industry 80,976 91,698 106,701 142,047 158,901 181,949 220,100
Source: Ministry of CoordinationNational Accounts Service.
/1 Provisional data./2 Estimate.
Table 8.2: VALUE ADDED IN INDUSTRY
(In Millions of Drachmae, at Constant 1970 Prices)
1970 1971 1972 1973 1974 l975- 1976 -
Food, drink and tobacco 9,317 10,312 11,008 12,370 11, 995 12,931 13,760Textiles 6,937 8,133 9,096 10,791 10,675 12,568 14,460Clothing and footwear 4,627 5,045 5,545 6,129 6,409 6,755 7,330Wood products and furniture 3,051 3,321 3,668 4,142 3,389 3,970 4,020
Paper, printing and publishing 2,268 2,272 2,527 2,865 2,728 2,661 2,750Chemicals and allied trades 5,495 6,114 6,446 8,648 8,385 9,238 9,750Stone, clay and glass 3,736 4,037 4,023 4,935 5,041 5,206 5,960Basic metal industries 3,638 3,247 3,222 4,612 4,656 4,544 4,860
Metal manufacture, engineering andelectric goods 6,298 7,412 8,605 9,573 8,712 8,043 9,370Transport equipment 2,595 3,225 3,178 3,402 3,435 3,327 3,130Other manufacturing 1,304 1,468 1,574 1,761 1,841 2,075 2,310
Total Manufacturing 49,266 54,586 58,892 69,228 67,266 70,778 77,700
Mining and Quarrying 3,541 4,031 4,495 5,082 4,774 4,933 5,230
Electricity, gas and water works 5,152 5,911 7,389 8,133 7,701 8,577 9,550
Construction 23,017 26,274 31,179 31,924 22,082 23,040 24,300
Total Industry 80,976 90,802 1(4,955 114,367 101 823 107,328 116,780
Source: Ministry of CoordinationNational Accounts Service.
/1 Provisional data./2 Estimate.
Table 8.3 :VALUE ADDED PER PERSON EMPLOYED INMANUFACTURING
(Drachmae at Constant 1970 Prices)
1958 1963 1969 1973 1975
1. Food, drink, tobacco 38,364 49,550 76,540 111,803
2. Textiles 51,944 59,965 113,935 157,719
3. Clothing and footwear 37,436 36,842 64,344 85,090
4. Wood products and furniture 21,720 27,501 49,876 64,870
5. Paper, printing and publi-shing 54,421 64,559 109,006 119,704
6. Chemicals 50,629 80,868 160,115 217,003
7. Stone, clay, glass 46,073 56,891 97,443 131,723
8. Basic metals 91,623 167,468 450,166 584,843
9. Metal manufacture,engineering and electrical 42,077 44,187 73,537 93,835
10. Transport equipment 29,242 43,463 49,378 64,422
11. Other 44,049 41,147 57,990 69,984
All manufacturingl/ 40,020 48,055 85,008 114,608
Source: 1) National Accounts of Greece NO 23.2) Census of Industrial establishments.
l/ Sectoral Average.
Table 8.4: STRUCTURE OF GREEK INDUSTRY
Number of Establishments by Size
1965* 1968* 1969** 1973** 1975*No. of % ailf No. of % all No. of %all No. of % all No. of % allunits units units units units units units units units units
Units employingunder 10 people 113,110 94.9 112,976 94.6 118,437 94.9 113,479 93.5
10 - 20 people 3,505 2.9 3,853 3.2 3,438 2.8 4,240 3.5
Over 20 people 2,491 2.2 2,564 2.2 2,776 2.3 3,638 3.0
Total 119,106 100.0 119,393 100.0 124,651 100.0 121,357 100.0 n.a.
Employmentl! by Establishment Size
1965* 1968* 1969** 1973** 1975**Employ- % Employ- % Employ- % Employ- 7 Employ- %ees ees ees ees ees
Units employingunder 10 people 264,517 53.7 256,827 53.0 247,497 49.4 255,016 42.2
10 - 20 people 47,799 9.7 52,351 10.8 46,213 9.2 56,579 9.4
Over 20 people 180,051 36.6 176,336 36.2 207,812 41.4 292,446 48.4
Total 492,367 100.0 485,514 100.0 501,522 100.0 604,041 100.0 n.a.
.J1 Employment includes salaried employees, wage earners, working proprietors and non-paid family members.** Industrial census of industrial establishments.* Annual Industrial Surveys
Source: Annual Industrial Surveys, National Statistical Service of Greece
Table 8.5: EXPORTS OF MANUFACTURES1'
(In Millions of Dollars, Current Prices)
1970 1971 1972 1973 1974 1975 1976
Value % Value % Value % Value % Value z -Value--- % Value %
Food, drink, tobacco2 J 49.6 15.6 60.5 18.9 97.7 20.5 130.3 14.0 157.8 11.7 179.3 11.8 212.2 12.5
Textiles. 37.0 11.6 47.5 14.9 79.0 16.6 130.7 14.1 185.4 13.7 175.2 11.6 241.7 14.2
Clothing and footwear 15.7 4.9 21.0 6.6 38.5 8.1 77.2 8.3 123.9 9.2 179.3 11.8 256.5 15.0
Wood products andfurniture 1.3 0.4 2.0 0.6 3.5 0.7 8.5 0.9 13.8 1.0 14.0 0.9 23.2 1.4
Paper, printing andpublishing 4.0 1.3 4.8 1.5 5.8 1.2 6.2 0.7 12.1 0.9 11.0 0.7 11.8 0.7
Chemicals 41.0 12.8 40.7 12.8 61.7 12.9 266.6 28.7 264.2 19.6 362.3 23.9 232.6 13.7
Stone, clay, glass 7.1 2.2 11.0 3.4 15.0 3.1 15.9 1.7 82.9 6.0 113.0 7.6 141.9 8.3
Basic metals 124.2 38.9 84.2 26.4 106.2 22.3 185.9 20.0 319.6 23.7 209.3 13.8 276.9 16.3
Metal manufacture,engineering andelectrical goods 11.2 3.5 17.7 5.5 31.4 6.6 41.9 4.5 93.1 6.9 148.7 9.8 153.1 8.9
Transport equipment 3.0 0.9 2.7 0.9 3.1 0.6 7.6 0.8 12.3 0.9 33,0 2.2 50.7 3.0
Other 25.1 7.9 26.9 8.5 35.4 7.4 58.7 6.3 85.9 6.4 89.3 5.9 103.2 6,0
Total Exports 319.2 100.0 319.0 100.0 477.1 100.0 929.5 100.0 1,351.0 100.0 1514.4 100.0 1703.8 100,0
2J On the basis of arrivals and shipments
11 Exports of preserved olives, olive oil, wine in barrels and tobacco leaves, are excluded.
11 Exports of ginned cotton are excluded.
Source: National Statistical Service
Table 8.6 :IMPORTS, EXPORTS, PRODIJCTION AND INTERNAL CONSUMPTIONOF PETROLEUM PRODUCTS
(In Thousands of Tons)
1965 1970 1971 1972 1973 1974 1975 1976
IMPORTS
Crude Oil 1,804 5,015 5,381 7,044 13,717 11,514 10,428 11,870Motor Gasoline 90 -- 90 81. .106 192 56 98 89Jet Fuel 152 .278 328 428 562 430 332 326Fuel Oil+Diesel 1061 1,209 1,493 1,840 1,415 787 258 1,088Fuel Oil 647 886 L,153 1,368 828 512 94 709
EXPORTS :
Motor Gasoline - 19 19 3 128 36 23 43Jet Fuel - 73 42 62 221 149 249 202Kerosene - 5 10 2 50 - 9 2Fuel Oil + Diesel - 58 11 5 3,495 1,290 2,000 1,232Fuel Oil - - 17 - - 2,135 738 1,192 836PRODUCTION OF FINAL PRODUCTS :
Liquified gases 42 98 106 94 122 110 132 137Motor Gasoline 240 582 651 665 772 836 851 991Jet Fuel 32 325 369 336 454 297 644 591Kerosene 133 77 75 158 120 55 48 51Fuel Oil+Diesel 1228 3,391 3,638 4,643 9,091 8,215 8,368 7,942Fuel Oil 616- -.1e751 1,929 2,691 5,634 5,251 5,428 5,272
INTERNAL CONSUMPTION OF FINAL PRODUCTS :
Liquified gases 45 118 130 138 148. 141 146 157Motor Gasoline 350 649 725 819 854 '851 927 1,056Jet Fuel** 230 532 590 712 792 614 636 671Kerosene 131 75 77 70, 70 56 54 50Diesel Oil 623 1,720 1,938 2,154 2,527 2,164 2,308 2,503Fuel Oil 1,804 2,222 2,651 3,240 3,835 3,765 3,597 3,883
1/ Imports for Internal Consumption only;
**
lt includes JP-4 and, JP-1 for international airlinen.* .nplprted to be refined in the Country.-
(
Table 8.7; ELECTRICITY GENERATION AND CONSUMPTION(In million KWH)
ConsumptionInstalled Power Breakdown of Gross (Net of Distribution
Capacity Gross Domestic Donmestic Production Losses and Electric(in MW) Production (Percent) Plants ConsumPtion) _ Actual Sales of P.P.C.
Commercial Alumi-Thermal Indus- nium
Year Total P.P.C. Total P.P. Hydro Lignite fuel TSIal LR..-C- Domestic trial Othp-P lp,
1961 663 627 2,543 2,453 21.9 47.9 30.2 2,155 2,103 616 1,265 222 -
1961 1,122 1,066 4,399 4,132 17.3 50.7 32.0 3,841 3,745 1,083 2,320 343 -
1968 1,870 1,787 7,339 6,949 18.4 35.7 45.9 6,657 6,479 1,519 3,475 357 1,128
1969 2,374i 2,290 8,422 8,010 23.9 35.3 40.8 7,650 7,434 1,773 3,996 473 1,192
1970 2,577 2,495 9,399 8,991 26.8 35.6 37.6 8,581 8,357 1,990 4,554 532 1,281
1971 2,783 2,695 11,043 10,611 23,0 42.6 34.4 10,063 9,822 2,291 5,111 602 1,818
1972 2,946 2,857 12,451 12,034 20.4 37.0 42.6 11,428 11,184 2.677 5,902 663 1,942
1973 3,546 3,442 14,009 13,546 15.0 35.0 50.0 13,014 12,701 3,070 6,758 747 2,126
1974 4,119 3,989 t4,194 13,724 17.0 36.0 47.0 13,175 12,846 3,002 6,903 729 2,212
1975 4,868 4,736 15,168 14,618 13.3 44.9 41.8 14,020 13.600 3,340 7,381 809 2,070
1976 4,947 4,806 16,662 16,323 11.2 54.1 34.7 15,429 15,091 3,749 8,415 834 2,093
Source: OECD, Public Power Corporation
Table 9.1: PRICE INDICES
A. Annual Average Percentage_Chanes : 1968-1976
1968 1969 1970 1971 1972 1973 1974 1975 1976
Consumer PricesGeneral Index 0.3 2.5 2.9 3.0 4.3 15.5 26.9 13.4 13.3
Foodstuffs - 3.4 3.1 5.1 4.0 21.2 27.7 11.8 13.9
Wholesale prices1. Athens-Piraeus area
General Index -0.2 2.8 2.5 2.4 4.1 24.3 35.3 7.0
Foodstuffs o.6 2.2 2.3 3.9 3.8 25.6 23.3 12.4
2. All GreeceGeneral Index 0.0 3.9 3.9 3.5 6.3 23.4 36.7 6.8 14.0
Domestic FinalProducts for HomeConsumption 0.3 3.8 3.2 2.1 4.7 21.0 39.1 7.6 13.6
Foreign FinalProducts -0.1 4.o 8.4 10.4 l1.4 22.6 37.7 8.6 12.3
B. Monthly Percentage Changes = 1971-1974
JAN. FEB. MAR. APR. MAY. JUN. JUL. AUG. SEPT. OCT. NOV. DEC. JAN-DEC
General ConsumerPrice Index
1971 -0.2 -1.8 2.2 1.5 1.2 -0.8 -1.5 -1.8 2.3 0.3 0.3 1.2 2.9
1972 0.1 -1.5 2.7 1.3 0.4 -0.4 -1.2 -1.5 2.2 1.5 0.9 1.9 6.6
1973 o.4 -1.o 3.1 1.8 2.0 2.5 -1.3 0.4 5.9 4.7 6.0 2.9 30.7
1974 2.7 -1.2 3.2 1.1 1.4 1.2 -0.1 -2.1 2.8 1.4 1.0 1.3 13.5
1975 1.3 0.3 3.6 1.1 0.3 0.2 -1.9 -1.0 4.2 2.7 1.4 1.5 15.7
1976 0.7 -0.3 2.9 1.0 0.9 0.8 -1.2 -1.4 3.0 1.7 1.4 1.8 11.?-
General WholesalePrice Index(All Greece)1971 0.8 0.1 0.3 0.3 0.1 o.8 -o.6 0.0 0.5 o.4 0.7 0.9 4.6
1972 0.8 1.2 o.8 -0.2 0.1 o.4 -0.3 -0.1 1.4 0.7 2.2 2.9 10.5
1973 1.0 1.1 1.9 1.3 2.3 3.0 2.3 +2.3 5.9 3.6 8.8 4.1 44.2
1974 6.o 3.2 o.4 0.5 0.9 -0.1 -o.4 -1.5 0.4 0.7 0.6 1.1 12.4
1975 1.9 1.6 0.7 1.2 -1.2 -1.2 -0.7 0.3 1.9 2.2 1.9 1.2 10.1
1976 2.0 2.1 2.4 1.5 0.4 -n, -1.3 0.9 1.1 2,1 1.0 2.4 1S.2
Source: Ministry of Coordination
Table 9.2: PRICE INDICES FOR ENTIRE GREECE
(Average Annual Rates of Change During the Period)
A. CONSUMER PRICE INDEX
1970 1971 1972 1973 1974 1975 1976
GENERAL INDEX 2.9 3.0 4.3 1L 26.9 13.4 13.3
Food 3.1 5.1 4.0 21.2 27.7 11.8 13.9Alcoholic Beverages and Tobbacco 0.1 - 0. 4 4.0 13.9 17.3 8.6Clothing and Footwear 1.9 1.2 4.1 14.o 22.0 11.2 13.5Housing 0.4 0.7 1.5 6.7 27.4 11.7 11.0Household Equipment 2.3 2.9 3.4 13.2 26.7 6.7 10.6Medical and Personal Care 2.7 2.3 8.4 17.2 24.4 20.6 24.8Education and % creation 10.0 2.8 6.2 15.6 28.7 16.0 15.9Transport and Communications 4.0 2.5 8.5 10.1 37.4 19.6 11.5Miscellaneous 1.8 2.5 7.4 16.2 23.6 17.1 9.7
B. WHOLESALE PRICE INDEX
1970 1971 1972 1973 1974 1975 1976
GENERAL INDEX 3.9 3. 6.3 23.4 36.7 6.8 14.0
Domestic Primary Product for Home Consumption 3.2 1.9 6.6 26.1 29.9 i.4 18.6
Domestic Industrial Product for Home Consumption 3.1 2.2 3.1 16.8 47.4 ',8 9.6
Exported Domestic Primary and Industrial 3.0 2.6 10.7 46.3 18.2 -- 8 21.5Products
Final Product of Foreign Origin 8.5 lo.4 11.4 22.6 37.7 F.6 12.3
Source: Ministry of Coordinationw.
Table 9.3: ANNUAL AVERAGES HOURLY WAGES OF WORKERS IN INDUSTRIAL
AND HANDICRAFT ESTABLISHMENTSl/: 1970-1975
(In Drachmae)
Both Sexes Males FemalesAverage Change Annual Average CGange Annual Average Change AnnualHourly Index Average Hourly Index Average Hourly Index Average
Years Wage 1266=100 Chan Wage (1 66=100) Chane2! Wage (1966=100) Change
1970 16.0 140.35 5.96 17.9 134X58 5.91 12.2 146.98 4.27
1971 17.4 152.63 8.75 19.7 148.12 10.06 13.0 156.62 6.56
1972 18.9 165.78 8.62 21.4 160o.90 8.63 14.4 173.49 10.77
1973 22.0 192.98 16.40 25.4 190.97 18.69 16.5 198.79 14.58
1974 27.9 244.74 26.82 31.8 239.10 25.20 21.3 256.63 29.10
1975 34.7 304.39 24.37 39.3 295.49 23.58 27.3 328.92 28.17
1976 44.7 392.10 28.82 50.05 379.70 28.50 35.5 427.71 30.03
1/ Establishment with 10 workers or more
2/ Percentages
Source: National Statistical Service of Greece; Ministry of Coordination, Prices and IncomeDistribution
Table 9.4: MINIMUM DAILY WAGES: 1970-1975
(In Drachmae)
AVERAGE AVERAGEYEARS MALES (INDEX;1966=100) ANNUAL FEMALES (INDEX:1966=loo) ANNUAL
CHANGE (%) CHANGE (%)
1970 103.50 138. 00- 86.25 143.75 -
1971 110.00 146.66 6.28 93.00 155.00 7.82
1972 115.00 153.33 4.54 97.00 161.66 4.30
1973 165.60 220.00 43.47 144.o0 240.00 48.45
1974 182.16 242.66 10.30 158.40 264.00 10.00
1975 219.00 292.00 20.33 199.30 332.17 25.82
1976 256.00 341.33 16.89 240.64 401.07 20.74
Source: Ministry of Coordination, Prices and Incomes Division.
Table 10.1: TOURIST ARRIVALS
(In Thousands)
Of Which Arrivals of Foreign CitizensTotal Arrivals Greek From America From Europ_,
Year number of cruise of Citizens Total Total U.S.A. Total E.E.C.- U.K.Arrivals Passengers from
Abroad
1955 208.4 12.5 24.4 171.5 35.6 34.2 110.5 47.4 17.9
1960 399.4 55.5 28.1 315.8 79.2 75.3 196.9 96.9 40.8
1]965 976.1 129.2 30.7 816.3 184.9 172.5 546.6 258.2 84.9
1966 1,131.7 134.1 30.7 966.9 211.0 195.3 659.7 297.8 105.9
1967 996.5 147.5 27.9 821.1 193.8 178.2 539.3 257.9 103.5
1968 1,017.6 138.1 92.7 786.8 218.0 201.9 467.6 249.1 99.0
1969 1,306.0 166.6 91.6 1,047.8 339.4 311.8 623.6 334.9 138.4
1970 1,609.2 201.8 153.0 1,252.9 357.4 304.6 761.8 379.3 166.9
1971 2,257.9 276.7 199.7 1,781.6 503.7 438.9 1,129.4 529.9 245.5
1972 2,731.5 295.2 202.1 2,234.2 626.6 548.1 1,423.8 607.2 310.1
1973 3,177.7 331.1 226.5 2,620.1 697.4 615.6 1,714.4 721.1 335.8
1974 2,188.3 231.9 190.3 1,766.1 425.6 371.8 1,166.0 494.1 244.6
1975 3,173.0 332.9 197.5 2,642.6 522.5 458.6 1,903.6 656.9 319.5
1976 4,243.6 398.4 173.2 3,672.1 575.1 493.0 2,780.6 1,123.3 433.5
1/ Six original members.
Source: National Statistical Service.
Table 10.2: TOURISM: HOTEL FACILITIES
Classification
Luxus (AA) Class A Class B Class C TotalYear Hotels Beds Hotels Beds Hotels Beds Hotels Beds Hotels Beds
(1000) (1000) (1000) (1000) (1000)
1955 7 1.2 77 5.3 144 5.4 214 8.4 442 20.3
1960 10 2.1 84 6.6 137 7.8 289 10.7 509 27.1
1965 20 5.1 105 9.8 217 14.3 406 18.9 748 48.1
1966 20 5.2 114 11.3 235 16.2 448 21.9 817 54.5
1967 21 5.5 111 11.5 255 18.2 478 24.1 865 59.3
1968 22 5.8 113 13.4 269 19.6 542 28.4 946 67.1
1969 22 5.8 108 13.9 294 22.1 618 34.4 1042 76.1
1970 22 5.6 110 15.4 324 27.2 641 38.0 1097 86.3
1971 25 7c0 123 20.1 342 32.9 689 42.5 1179 102.5
1972 27 8.1 133 25.0 364 39.2 725 45.9 1249 118.1
1973 31 10.3 140 29.1 387 44.8 759 48.8 1317 132.9
1974 32 10.8 150 33.0 403 49.8 782 49.4 1367 142.9
1975 31 11.1 160 36.3_ 395 57.4 772 51.2 1358 153.0
1976 33 12.0 173 43.7 415 58.8 1025 6P.6 1646 175.1
Source: Ministry of Coordination.
Table 10.3: LAND TRANSPORT STATISTICS
1970 1971 1972 1973 1974 1975 1976
RailwaysPassengers(millions) 12.6 13.3 12.9 12.7 12.3 12.9 12.9Passenger kilometers 1530.7 1635.1 1563.0 1615.0 1468.5 1559.5 1582.7
(millions)Freight (million tons) 2.9 3.4 3.0 3.3 3.9 4o0 3.5Ton Kilometers (millions) 688.1 748.1 755.6 797.9 902.0 930.7 844.5
Motor VehiclesPassenger Cars& / 344.8 392.7 444.8 509.4 564.0 649.3 747.4
(in thousand)Of which:In private use (in thousand) 211.6 246.6 281.7 323.4 355.5 414.1 484.9Interurban buses 3.4 3.4 3.4 3.4 3.4 3.4 3-5
(in thousand)Interurban bus trips 155.6 159.6 166.9 172.9 180.4 184.8 191.0
(in million)Interurban Passenger 4783.3 4973.2 5095.0 5240.4 4648.1 4749.8 4766.2
Kilometers (in million)Urban buses for public 2.7 2.7 2.7 2.7 2.7 2.7 2.7
transport (in thousand)Urban bus trips (in million) 1068.2 1061.8 1012.7 976.7 928.0 882.2 805.2All buses?./ (in thousand) 10.5 11.0 11.5 12.4 13.0 13.4 13.9All trucks3] (in thousand) 107.4 118.3 130.9 150.4 170.8 196.8 223.5Of which:In private use (percent) 86.5 96.7 109.1 128.0 147.9 173.6 200.2In public use (percent) 20.9 21.6 21.8 22.4 22.9 23.2 23.3Motorcycl s (in thousand) 69.2 72.2 75O7 _30O0 84_ 1 87_.8 91.0
TotalIA (in thousand) 531.9 594.2 662.9 _ 752_2 831.9 947.3 1075.821/ All users.X21 Excluding vehicles beloiging to the Armed Forces, Pub1'-- Security Force, Flre Service, Public. Service, Diplomatic
Corps, Foreign missions and war invalids..1 Passenger cars (all users) and all busses, trucks, aud motorcycles (except for tbe restriction in note 2)
Source: National Statistl.cal Service and Ministry of Tranoportation.
Table 10.4: PORT MOVEMENTS
All Greek Ports
Total traffic Goods Loaded ('000 Tons) Goods Unloaded ('000 Tons)Arrivals Domestic Inter- Total Domestic Inter- Total(NRT ('000) national national
1965 58,167 4,318 2,727 7,045 4,240 8,885 13,1251970 86,518 7,476 4,158 11,634 7,397 13,391 20,7881971 93,025 9,181 4,415 13,596 9,078 14,170 23,2481972 102,702 10,279 5,929 16,208 10,262 17,772 28,0341973 111,852 11,850 8,846 20,696 11,866 25,257 37,123
1974 104,734 12,598 12,179 24,777 12,610 25,284 37,8941975 112,180 13,079 14,339 27,418 13,085 23,022 36,1071976 118,515 12,893 13,246 26,139 12,890 25,948 38,838
Pireaus
1965 15,775 569 212 781 547 3,128 3,6751970 20,771 801 353 1,154 1,574 3,681 5,2251971 23,380 827 446 1,273 1,885 3,612 5,4971972 26,344 851 480 1,331 2,298 4,290 6,5881973 26,721 1,042 496 1,538 2,435 4,768 7,203
1974 23,432 948 697 1,645 1,947 3,841 5,7881975 23,158 964 985 1,949 2,064 3,704 5,7681976 25,331 1,016 1,163 2,179 2,249 4,113 6,362
Salonika
1965 2,016 277 240 517 1,031 736 1,7671970 3,875 1,847 565 2,412 600 4,478 5,0781971 4,741 2,384 684 3,968 680 5,062 5,7421972 5,173 2,291 928 3,219 580 5,477 6,0371973 4,413 1,398 874 2,272 427 5,429 5,856
1974 4,582 1,434 933 2,367 642 5,447 6,0891975 5,133 1,604 971 2,575 553 5,573 6,126
1976 5,209 1,403 1,108 2,511 537 5,535 6,072
Source: Ministry of Coordination..
Table 10.5: GREEK MERCHANT FLEET: VESSELS OF 100 GRT. AND OVER
(End of Period, GRT. in Million)
1970 1971 1972 1973 1974 1975 1976Units GRT Units GRT Units GRT Units GRT Units GRT Units GRT Units GRT
Dry Cargo Ship 1612 8.0 1780 9.2 1985 11.4 2137 13.6 2149 13.9 2231 14.5 2475 17.0
Laid-up 0.1 0.6 0.3 0.2 0.1 0.5 0.5
Tankers 316 4.8 343 5.5 391 6.9 456 8.9 471 9.3 467 9.4 494 - 10.6
Laid-up - 0.2 0.2 0.1 0.2 1.6 i.5
Passenger 203 0.6 221 0.6 283 0.7 303 0.8 301 0.8 307 0.6 327 0.9
Laid-up 0.3 0.2 0.3 0.3 0.3 0.2 0.3
1/Other - 188 0.1 199 0.1 167 0.1 217 0.1 224 0.1 211 0.1 213 0.1
Laid-up - -
TOTAL 2319 13.5 2543 15.4 2826 19.1 3113 23.4 3145 24.1 3216 24.8 3509 28.6
LAID-UP 0.4 1.0 0.8 0.6 0.6 2.3 2.3
- Salvage, Fishing, Cable Vessels, etc.
Source: National Statistical Service