Greece Economy Suffers, Business Creation Down by 50%

Tourism and medical services are two areas with positive performance.

Tourism aside, Greece is still unable to restore its ailing economy to health and reverse the country’s brain drain as demonstrated by a massive 50 percent drop in the number of new companies established compared to 2008, according to the latest Endeavor Greece report.

Released on Wednesday, the report assessing General Commercial Registry (GEMI) data in the eight years of recession, found that in 2016 a total of 28,615 new businesses were registered, down by 33 percent against 2012. Company/factory closures, meanwhile, in 2016 surpassed new company creation by 6,500 with main losses in retail (955), construction (640) and manufacturing (424). The energy sector suffered the greatest drop which by 93 percent.

The report identified tourism and medical services as the two areas with positive performance. Indicatively, tourism marked a 31 percent increase  compared to 2012 with the establishment of 1,347 new enterprises, and fresh business in medical services rose by 9 percent.

The study also revealed that 84 percent of businesses set up between January and November 2016 were in the food/catering, entertainment, retail commerce and accounting/consultancy services and remain strictly focused on ‘’non-productive” domestic consumption.

Launching its first European office in Athens in 2012, Endeavor identifies entrepreneurs leading high-growth innovative companies in emerging markets and provides strategic advice, access to key networks and other tools to strengthen their performance.