Economy

Greece has traditionally been a largely agricultural country, and agriculture remains an important sector of the economy. Since 1970, however, manufacturing and services have accounted for the largest share of the gross domestic product.

Normally, Greece imports more than it exports. The resulting trade deficit is partly offset by money spent by the many tourists who visit Greece each year, by the earnings of Greece's merchant fleet, and by money sent home by Greeks working abroad. Trade is primarily with other members of the European Union.

From the late 1950's to the early 1980's manufacturing underwent impressive growth. Most enterprises are small, employing fewer than 10 workers; many are family owned and operated. Large firms, however, control most of the heavy industry. Large industrial complexes are engaged in metallurgy; petroleum refining; the making of chemicals, fertilizers, and plastics; and shipbuilding and ship repairing. Textiles, processed foods, leather items, and tobacco goods are products of long-standing importance.

The Athens metropolitan area, including the port city of Piraeus, is the leading center for manufacturing. Other large centers are Thessaloníki and Iráklion (on Crete). Pátrai, Vólos, and Eleusis are also significant.

A dry climate, poor soils, and rugged terrain make farming difficult in much of Greece. About 30 per cent of the land is cultivated. The terracing of hillsides is a common practice. Pasture, generally of poor quality, occupies slightly more land than crops.

Nearly one-fourth of the people make a living by farming. Modernization has taken place in many areas, but there are still many small farms that lack modern equipment and are worked by age-old methods.

Wheat, corn, and barley are the leading grain crops. Fruits and vegetables—notably tomatoes, citrus fruits, grapes, olives, melons, and figs—are widely grown. Tobacco, sugar beets, and cotton are the main industrial crops. Sheep, goats, and poultry are the chief animals raised.

Greece is a large producer of bauxite. Other metallic minerals mined in significant amounts are chromium, lead, and zinc. Important nonmetals produced are asbestos, magnesite, and stone, sand, and gravel. Petroleum from wells in the northern Aegean and lignite, a low-grade coal, are the chief mineral fuels produced. Output, however, falls below domestic needs and large amounts of fossil fuels must be imported.

Despite its maritime heritage, Greece is not a major fishing nation. The relatively small catch comes from both Mediterranean and Atlantic waters. The chief species caught, by weight, are sardines, anchovies, and mackerel. Sponge fishing is carried on in the Aegean.

Transportation. Few places in Greece lie more than 80 miles (130 km) from the sea, and shipping is a major form of transportation. Piraeus, part of greater Athens, is the leading port. The Corinth Canal links the Aegean and Ionian Seas.

The main line of the railway system runs from Athens to Thessaloníki and northward. Greece has good roads in most of its mainland coastal areas, particularly the Aegean coast. Elsewhere, there are relatively few good roads. The Greek national airline, Olympic Airways, provides domestic and international service.