Trade with Greece
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improvement of key fundamentals during 2014,
and signal the return of the Greek economy to
positive growth rates, following six years of inces-
sant and deep recession, which caused a cumu-
lative contraction of GDP by more than 25%. The
latest available quarterly data show that the
recession started to subside since the 1st quarter
of 2014, and, as a result, the year as a whole saw
positive growth of 0.8%, for the first time since
2007. The main drivers of this development were
the growth in the exports of goods and services
(shipping and tourism) and the increase in private
consumption. Moreover, despite the fact that the
unemployment rate remains high and is the high-
est in the EU, total employment improved by
0.3% and dependent employment improved by
2.3%, while the number of the unemployed fell by
3.3% for the first time since 2008. This is
undoubtedly an auspicious development, in which
the tourism services sector of the Greek economy
played a major part.
Based on a study by the Association of Greek
Tourist Enterprises, the overall contribution of
tourism to the Greek economy in 2014 is esti-
mated at 20.9-25.1%, taking, of course, into
account the multiplier effects of tourist activity. In
other words, this contribution stood at €37-45 bil-
lion, while the direct contribution of tourism to the
country’s GDP stood at €17 billion. According to
the same study, this figure consists of incoming
tourist expenditures of €13.2 billion; cruise pas-
senger expenditures of €468 million; cruise com-
pany expenditures of €227 million; sea transport
expenditures of €1.18 million; domestic tourism
expenditures of €1.58 billion; and an investment
expenditure of €200 million.
More specifically, in the case of 3 island regions
(Crete, South Aegean, Ionian Sea), tourism
directly accounted for almost half of their GDP!
According to other research concerning the inter-
dependence of tourism with other industries, it is
estimated that tourist consumption affects 60% of
all economic sectors, while the value of the
tourism multiplier stands at 2.18. Plainly speak-
ing, this means that every €1 consumed in
tourism generates more-than-double secondary
consumption in other sectors of the economy.
Indeed, in periods of recession or weak growth
and high unemployment, as the one currently
experienced by the Greek economy, apart from
the rational reform of chronic distortions and the
systematic restructuring of the country’s produc-
tive fabric that will enable its adaptation to the
new conditions —which will anyway take too long
to bear fruit— first priority should also be given to
measures and policies that offer quick solutions,
