What type of economy does Greece have?


Quick Answer

Greece has a capitalist economy with the public accounting for around 40 percent of the gross domestic product, or GDP. The majority of Greece's economy centers around the service sector, which includes such areas as gambling, banking and health care. A sizable portion of the country's economy comes from the tourism industry, which produces around 18 percent of the GDP.

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Full Answer

Greece was hit hard by the world financial crisis in 2009. The country's economy went into recession and shrank 26 percent by 2013, compared to the pre-recession levels of 2007. This large drop in economy, the country's inability to pay its debts and the public's deteriorating finances caused the world's major credit rating agencies to drop the country's debt rating. The European Union has given Greece large loans to try to help pull the country out of the economic crisis that existed. The city of Athens specifically received its own bailout due to issues the city was having before the main economic crisis occurred. During the second quarter of 2014, the country managed to reverse its economic downfall. Many government service-related cuts were required to get the country back on track, but have caused severe unrest with the public.

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