Identification

• Greece has a capitalist economy focusing mainly on service provisions, with the public sector accounting for 40 percent of the gross domestic product (GDP). Tourism and agriculture are two important areas that benefit the economy.
  
  

History

• In 2002, Greece adopted the EU currency, the euro, replacing the previously used drachma. This switch provided Greece with competitive loan rates, increasing the rate of consumer spending. This led to the country increasing its GDP growth by about 4 percent through 2007. In 2008, the rate of increase slowed to 2 percent. In 2009, the Greek economy went into recession, from which, it is expected, it will take years to recover.
  
  

Problems

• The decline of the Greek economy began in 2008 when it went into a recession. Subsequently, the country became one of the greatest receivers of economic aid from the EU budget. The crisis caused by the failing economy increased the unemployment rate in 2009. As of 2010, Greece is under the EU's Excessive Deficit Procedure, which requires it to bring its deficit to 3 percent or less before 2012.