Greece

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Greece is situated in southeast Europe on the Mediterranean. The mainland consists of the following regions: Central Greece, Peloponnese, Thessaly (east/central), Epirus (west), Macedonia (north/northwest) and Thrace (northeast). Euboea (Evvia) the second-largest of the Greek islands, lying to the east of the central region and connected to it by a bridge, is also considered to be part of the mainland region. The Peloponnese peninsula is separated from the northern mainland by the Isthmus of Corinth. The northern mainland is dissected by high mountains (such as the Pindus) that extend southwards towards a landscape of fertile plains, pine-forested uplands and craggy, scrub-covered foothills. The islands account for one-fifth of the land area of the country. The majority are thickly clustered in the Aegean between the Greek and Turkish coasts. The Ionian Islands are the exception; they are scattered along the west coast in the Ionian Sea. The Aegean archipelago includes the Dodecanese, lying off the Turkish coast, of which Rhodes is the best known; the Northeast Aegean group, including Chios, Ikaria, Lemnos, Lesvos and Samos; the Sporades, off the central mainland; and the Cyclades, comprising 39 islands (of which only 24 are inhabited). Crete, the largest island, is not included in any formal grouping.

Greece has a capitalist economy with the public sector accounting for about 40% of GDP and with per capita GDP at least 75% of the leading euro-zone economies. Tourism provides 15% of GDP. Immigrants make up nearly one-fifth of the work force, mainly in agricultural and unskilled jobs. Greece is a major beneficiary of EU aid, equal to about 3.3% of annual GDP. The Greek economy grew by nearly 4.0% per year between 2003 and 2007, due partly to infrastructural spending related to the 2004 Athens Olympic Games, and in part to an increased availability of credit, which has sustained record levels of consumer spending. But growth dropped to 2.8% in 2008, as a result of the world financial crisis and tightening credit conditions. Greece violated the EU's Growth and Stability Pact budget deficit criteria of no more than 3% of GDP from 2001 to 2006, but finally met that criteria in 2007-08. Public debt, inflation, and unemployment are above the euro-zone average, but are falling. The Greek Government continues to grapple with cutting government spending, reducing the size of the public sector, and reforming the labor and pension systems, in the face of often vocal opposition from the country's powerful labor unions and the general public. The economy remains an important domestic political issue in Greece and, while the ruling New Democracy government has had some success in improving economic growth and reducing the budget deficit, Athens faces long-term challenges in its effort to continue its economic reforms, especially social security reform and privatization.