(Greece) – According to the European Commission, the industrial sector in Greece has suffered a decline starting in 2008. This has impacted businesses of all sizes and has resulted in a considerable loss of revenue for the Greek economy as well as a loss of jobs.
From 2008 to 2005, around 35 major companies closed in Greece. At the start of 2008, the country had 142 large companies, each with at least 250 employees. By the end of 2015, the number was considerably less than that – there were only 106. When these 35 companies closed, it represented about 2.9 billion euros in production losses.
This is another blog to the already struggling Greek economy. The economic crisis has impacted various industries in the country for various reasons. In the steel industry, businesses are struggling because of rising energy costs, which makes Greek business’ costs higher than other competitors in Europe. For example, Hellenic Halyvourgia, one of the country’s largest steel companies, closed in 2014 after several years of not meeting its financial targets.
It’s not just larger businesses that have been hit hard by the financial crisis. In fact, small and medium-sized businesses (SMB) have suffered the worse because of the Greek financial crisis. In 2008, there were 849,389 SMB’s in Greece and at the end of 2015 the number was reduced to 692,286. Because of this, the number of available jobs has shrunk from 2,310,905 to 1, 815,465.
Greece has been in a recession since before the first bailout, which took place in 2010. The country had to accept their third bailout earlier this year to pay off loan balances to the International Monetary Fund and the European Central Bank. Because of the three bailouts, the Greek people have had to endure austerity measures such as pension cuts, salary cuts, and job losses. There are signs that the economy is improving, however, which has prompted the Greek banks to ease up on the capital controls that were put into place in the summer of 2015.