Quarterly Report for the Greek Economy

1 - 2016

April 13th, 2016

This presentation is supported by

Once again at a pivotal point

• Another significant delay in the negotiations between the Greek Government and its partners and creditors

• The recurrence of these developments and their possibly addictive

effect on observers does not take away from their negative significance

• This is the first time that the economy is in such a breaking point, with capital controls and banks not functioning smoothly for a 9-month period

• Most troubling fact: recently, the developments regardingthe Greek economic crisis have, to a great extent, been disconnected from the rest of the European economy’s problems

• Greece is not perceived as a noteworthy systemic danger

The decision and responsibility about the country’s orientation

must be looked for almost exclusively within Greece

Probably slightly higher recession in 2016

GDP fall of about 1%• The GDP trend will heavily depend on the characteristics and

the time of completion of the evaluation of the programme

• In case of a breach or an irregular implementation of the programme, the developments would be dramatic, whereas the relevant immediate and long-term damage would be irreparable

It is imperative that the completion of the ongoing

evaluation is only the first step of a systematic,

consistent and intense effort to exit the crisis

Lack of correct orientation in politics

• Prolonged, extreme uncertainty deters focus from the structural problems of the Greek economy

• (low productivity, factors of production devoted to introvert activities)

• As long as the economy is not under reform, the end date of the Greek crisis is moving further away

• Presently, instead of the economy being under transition towards a new direction of balance in the financial system, the inertia is reinforced

• Given the magnitude of the challenge that the country is faced with, one would expect that a genuine search for solutions to such lingering and acute problems would be in progress

• Indicative problems: social security system, taxation, non-serviceable private loans, management of public property, public debt

Top priority: Recovery of reliability

• The fiscal policy cannot in practice contradict the main aims it is supposed to serve, as well as about subtopics

• The Euro is by design an expensive currency, within whose area economies with low levels of productivity and competitiveness would systematically face problems

• Therefore, it is imperative that the institutions at the European level are reinforced and that the economic union is strengthened

• But also that the Greek and other, similar economies must proceed with reform policies that strengthen their productivity

The Greek economy has significant, not yet developed advantages that, under the appropriate conditions, could lead

to higher growth than the Eurozone

Quarterly Report Overview

The global economic environment continues deteriorating

• Slowdown of global economic growth and global trade in 2015: from3.4%(for both) in 2014, to 3.1% and 2.6% respectively

• slowest growth after the 2009 crisis

• Initial predictions for an acceleration of global growth in 2016 to 3.4% are considered hard to be realised

• Factors of Uncertainty:• i) A slowdown of the Chinese economy from its adjustment to a more sustainable growth

model

• ii) Trends in prices of energy and basic goods, for both buyers and sellers

• iii) The increase in US interest rates (attraction of international capital)

• iv) Continued geopolitical tensions in the Middle East

• Possible problems within Europe:i) Brexit’s dire consequences on the financial stability of the EU and by extension on its

cohesion

ii) Management of refugee-migration flows

The global economic environment continues deteriorating

• Economic Sentiment and Expectation Indices: a slowdown or a strong worsening trend prevailed in the most significant economic zones globally

• Rate of growth in the Eurozone: +1.8% (2015), 1.9% (2016)

• Changes in growth determinants in the EU and the Eurozone

• Negative or zero net exports since 2014, at least for the first time in the last 15 years, a trend that continued in 2015 In the medium-term, net exports will not constitute a developmental cog for the European economy

Return to recession for the Greek economy in 2015

Significant but mild GDP decline (Oct.-Dec. 2015): -0.8% against -1.7% in Q3 ’15

and an increase of 0.9% in Q4 ’14

Recession of 0.3% in 2015, against a moderate growth of 0.7% in 2014

Negative effects to GDP from:

• Extensive decline in investment (-13.2%), against +9.8% in 2014

o A fall brought about exclusively from a decline in inventories

o Increase of fixed capital formation for the first time since 2007 (+0.9%), from higher investments in the first half of the year in transportation & mechanical equipment

• Decline in exports for the first time since 2011 (-3.7% against +7.4% in 2014)

o Exclusively from a fall in exports of services in the second half of the year (-22.2%), mainly in international transports - other services (-11.2% for total year)

o Increase in exports of goods in 2015 (+3.2%), primarily due to their upward trend in first half of the year

Return to recession…

Positive effects to GDP from:

• Marginal increase of domestic consumer spending

o Small increase in household consumption for the first time since 2009 (+0.2% against stability in the year before last)

− Increase from higher consumer spending in the first half of the year (+1.2%), as a result of the heightened political uncertainty due to the prolonged negotiations

o Public consumption was unmoved (-0.1%), against a reduction by 2.4% in

2014

− More public consumer spending from rehires & discontinuation of public sector reforms

• Decline in imports (-6.9%) after an increase of 7.8% in 2014

− Greater impact of limitations to capital mobility on imports

− Decrease of the external sector deficit by 43.3% in National Accounts terms, to 1.5% of GDP

State Budget 2015 - Final data

• Primary result of State Budget: surplus of €2.3 bn., against

initial target of €5.8 bn. (however, target of November 2014)

• Overall balance of SB: €3.5 bn. deficit, against a target of €0.1

bn.

• The overall result is burdened by the creation of new arrears by

the General Government, amounting to €1.6 bn., that will be

covered by State Budget

− The fall behind in revenues was the main cause of the big divergence

− Unofficial but significant revenue revision in the 2016 Budget (-€4.3

bn.)

− Hysterisis in revenues despite the urgent, one-off non-tax revenues,

as well as the measures implemented in past July

State Budget 2016

• Excess of the January – February target: primary surplus €3.0

bn., against a surplus target of €1.1 bn.

• Overall SB balance: surplus of €1.3 bn., against a deficit target

of €0.6 bn.

• Excess equally from a restraint of spending and higher revenues,

but also due to conjunctural factors:

− Higher than the target acceleration of drawings for the Public

Investment Program (PIP) by the EU; slowdown in the coming

months

− Excessive one-off non-tax revenues (BoG)

− Significant increase of arrears (+€716 mil. during the first two

months)

Several fluctuations in Industry

Sources: ΕLSΤΑΤ, Eurostat

2015: +0.6% against -1.9% in 2014

Jan. 2016: +4.6%, but Feb. 2016: -3.0%

+0.6% in the first two months of 2016, against +1.0% last year

Manufacturing +3.0%, Mining and Quarrying -9.6%, Electricity -3.9%, Water Supply -2.2%

Industrial Production Index

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

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005

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005

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015

Q2 2

015

Q3 2

015

Q4 2

015

Jan. -

Feb. '1

6

Eurozone-19 Greece

Construction: Strengthening of the significant 2014 ascent

Production Index in Construction and Building Activity Indicator (quarterly y-o-y changes)

Sources: ΕLSΤΑΤ - Eurostat

2015: -2.4%

2014: +15.1%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

-80

-60

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0

20

40

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Q1

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6

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7

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9

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9

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Q1

201

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5

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5

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201

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5

Q1

201

6

Building Activity Indicator Greece (Left Axis) Production Index Greece (Right Axis)

Production Index Eurozone (Right Axis)

Retail Trade deterioration in 2015

Volume Index in Retail Trade (2010=100) and Business Climate Index in Retail Trade (1996-2006=100)

2015: -1.5% 2014: -0.4%

Downward trend continues in January: -2.2%

Sources: IOBE, ΕLSΤΑΤ

40

50

60

70

80

90

100

110

120

130

40

50

60

70

80

90

100

110

120

130

Volume Index in Retail Trade (Left Scale) Business Expectation Index (Right Scale)

Increase in demand for services in comparison to 2014. Improvement in tourism but milder than in 2014

Sources: IOBE, ΕLSΤΑΤ

ΙΟΒΕ sentiment indicators: Pessimism in Q1’16 in all the sectors except from

Tourism

Turnover Index in Tourism (Accommodation and Food Service Industry)

A B C D A B C D A B C D A B C D A B C D A B C D A B C D

2009 2010 2011 2012 2013 2014 2015

Indicator 59 109 171 75 61 98 158 63 48 96 157 51 39 80 146 42 32 84 148 58 47 90 159 64 48 98 167 59

0

20

40

60

80

100

120

140

160

180

Improvement of economic sentiment in Q1’16, but lower levels than last year. Average European indicators also at lower levels.

Sources: ΙΟΒΕ, European Commission

Economic Sentiment Indicator

50

60

70

80

90

100

110

120

Mar-

05

Sep-0

5

Mar-

06

Sep-0

6

Mar-

07

Sep-0

7

Mar-

08

Sep-0

8

Mar-

09

Sep-0

9

Mar-

10

Sep-1

0

Mar-

11

Sep-1

1

Mar-

12

Sep-1

2

Mar-

13

Sep-1

3

Mar-

14

Sep-1

4

Mar-

15

Sep-1

5

Mar-

16

Economic climate EU Economic Climate Eurozone Economic Climate Greece Greece ave. (2001-2015)

Improvement of expectations in Q1’16 in most sectors

Souce: ΙΟΒΕ

ConstructionIndustry

Retail Trade Services

-50

-40

-30

-20

-10

0

10

50

60

70

80

90

100

110

120

Mar-

05

Sep-0

5M

ar-

06

Sep-0

6M

ar-

07

Sep-0

7M

ar-

08

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8M

ar-

09

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ar-

10

Sep-1

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ar-

11

Sep-1

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ar-

12

Sep-1

2M

ar-

13

Sep-1

3M

ar-

14

Sep-1

4M

ar-

15

Sep-1

5M

ar-

16

Industry - Greece

Greece ave. (2001-2015)

Industry - Εurozone (Right Axis)

-40

-30

-20

-10

0

10

0

20

40

60

80

100

120

Mar-

05

Sep-0

5M

ar-

06

Sep-0

6M

ar-

07

Sep-0

7M

ar-

08

Sep-0

8M

ar-

09

Sep-0

9M

ar-

10

Sep-1

0M

ar-

11

Sep-1

1M

ar-

12

Sep-1

2M

ar-

13

Sep-1

3M

ar-

14

Sep-1

4M

ar-

15

Sep-1

5M

ar-

16

Construction - Greece

Greece ave. (2001-2015)

Construction - Εurozone (Right Axis)

-30

-25

-20

-15

-10

-5

0

5

10

0

20

40

60

80

100

120

140

Mar-

05

Sep-0

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ar-

06

Sep-0

6M

ar-

07

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ar-

08

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8M

ar-

09

Sep-0

9M

ar-

10

Sep-1

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ar-

11

Sep-1

1M

ar-

12

Sep-1

2M

ar-

13

Sep-1

3M

ar-

14

Sep-1

4M

ar-

15

Sep-1

5M

ar-

16

Retail Trade - Greece

Greece ave. (2001-2015)

Retail Trade - Εurozone (Right Axis)

-30

-20

-10

0

10

20

30

40

50

60

70

80

90

100

110

120

Mar-

05

Sep-0

5M

ar-

06

Sep-0

6M

ar-

07

Sep-0

7M

ar-

08

Sep-0

8M

ar-

09

Sep-0

9M

ar-

10

Sep-1

0M

ar-

11

Sep-1

1M

ar-

12

Sep-1

2M

ar-

13

Sep-1

3M

ar-

14

Sep-1

4M

ar-

15

Sep-1

5M

ar-

16

Services - Greece

Greece ave. (2002-2015)

Services - Eurozone (Right Axis)

A significant loss of consumer confidence in Q1’16; big drop also in comparison to the corresponding period last year.

A slight deterioration noted in the corresponding European indicators.

Sources: ΙΟΒΕ, European Commission

Consumer Confidence

-90,0

-80,0

-70,0

-60,0

-50,0

-40,0

-30,0

-20,0

-10,0

0,0

Mar-

05

Sep-0

5

Mar-

06

Sep-0

6

Mar-

07

Sep-0

7

Mar-

08

Sep-0

8

Mar-

09

Sep-0

9

Mar-

10

Sep-1

0

Mar-

11

Sep-1

1

Mar-

12

Sep-1

2

Mar-

13

Sep-1

3

Mar-

14

Sep-1

4

Mar-

15

Sep-1

5

Mar-

16

Consumer Confidence E.U. Consumer Confidence Eurozone Consumer Confidence Greece Greece ave. (2001-2015)

Reduced unemployment in 2015: Unemployment at 24.9% from 26.5% in 2014

Number of unemployed in Greece 2001-2015

January 2016: 25.7%, from 26% in Jan. 2015 and 24.5% in 12/2015. Increased employment in 12 sectors in 2015. Indicatively: Real Estate Activities (+52.9%), Tourism (+9.6%), Professional,Scientific και Technical Activities (+6.4%), Manufacturing (+5.7), Retail and Wholesale Trade (+5.6%),Reduced employment in 9 sectors in 2015. Indicatively: Mines and quarries (-7.8%), Financial and Insurance activities(-5,1%), Electricity, Gas, Steam and Air Conditioning Supply (-4,5%), Construction (-4.2%).

Source: ΕLSΤΑΤ

508,4 492,7 472,7520,0

493,6448,2

418,4387,9

484,7

639,4

881,8

1.195,1

1.330,4

1.274,4

1.197,0

0

200

400

600

800

1.000

1.200

1.400

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Tho

u.

Marginal decrease in the rate of long-term unemployment last year for the first time since 2009

Long-term unemployed (number and percentage as per the total)

Source: ΕLSΤΑΤ

257,8 247,7 258,4 275,1 256,2 242,6207,9 182,6 195,6

285,2

435,0

706,2

892,7936,8

875,2

50,8 50,4

54,853,1 51,9

54,2

49,847,2

40,4

44,6

49,1

58,9

67,1

73,6 73,2

0

10

20

30

40

50

60

70

80

0

100

200

300

400

500

600

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800

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1.000

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

%

Tho

u.

Number of unmployed for over 12 months (Left Axis) Percentage (%) of long-term unemployed (Right Axis)

The current account balance was neutral in 2015, primarily due to a drop in imported goods

Current Account Balance, January – December 2009-2015

Source: Bank of Greece

-29.374,3

-25.847,9

-20.716,4

-7.329,6

-3.691,9 -3.767,4

-7,5

-35.000

-30.000

-25.000

-20.000

-15.000

-10.000

-5.000

0

2009 2010 2011 2012 2013 2014 2015

mil.

€

Current Account Balance

Fall in exports in 2015, after the increase in 2014

Source: Eurostat, data processing by ΙΟΒΕ

Exports and Imports of Goods and Services, values 2010 (% change)

Average change 2010-2014Exported goods and services: +3.1%Imported goods and services: -3.2%

-18,5

4,90,0

1,22,2

7,5

-3,8

-20,4

-3,4

-9,4 -9,1

-1,9

7,7

-6,9

-25

-20

-15

-10

-5

0

5

10

2009 2010 2011 2012 2013 2014 2015

%ch

an

ge

Exports of Goods and Services Imports of Goods and Services

15.8% decline in the deficit in the trade account in 2015

2015:

Exports : -5.3% (€25.6 bn., incl. fuels)

• +7.6% (€17.9 bn. excl. fuels - ships)

Imports: -9.8% (€42.6 bn.)

Trade Deficit: -17.1%

Intense Decline: Fuels (-26.4%)

Losses: Agricultural Goods (12.4%), Industrial Goods (6.8%)

Markets:

Losses: Turkey (47.6%), Esthonia (6.1%), Ukraine(24.1%), Bulgaria (5.9%), Russia (40.2%), Tunisia(42.2%), Morocco (39%), China (16.6%)

Increases: Ε.Ζ. (13.5%), EU-28 (10.6%), N. America(46.6%), Cyprus (14.4%), Italy (15.9%), UnitedKingdom (10%), Germany (4.2%), Egypt (38%),

Jan. – Feb. 2016 (provisional data): -7.6% (€3.6 bn., incl. fuels).

+0.4% (€2.83 bn. excl. fuels – ships)

0 €

10.000 €

20.000 €

30.000 €

40.000 €

50.000 €

60.000 €

70.000 €

2008 2009 2010 2011 2012 2013 2014 2015m

il.DEFICIT IMPORTS EXPORTS

Deceleration of deflation continues, although at a slower pace than last year

• Q1’16: Evidently smaller fall in pricesagainst the corresponding period of2015: -0.9% against -2.4%

• Slight acceleration of deflation againstQ4’15 (-0.6%)

• Increase in V.A.T. led to anincrease in prices (+2.7% in hotels-cafes-restaurants, +1.3% inalcoholic beverages-tobacco)

• Deflation is sustained by a furtherdecline in fuel prices (Housing -4.5%, Transport -3.3%)

• Producer Price Index (Jan. - Feb. 2016): -9.4%, greatest decrease of the

decade

• Import Price Index (Jan. 2016): –8.3% against -12% a year earlier

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

Mar

-11

Jun

-11

Sep

t-1

1

Dec

-11

Mar

-12

Jun

-12

Sep

t-1

2

Dec

-12

Mar

-13

Jun

-13

Sep

t-1

3

Dec

-13

Mar

-14

Jun

-14

Sep

t-1

4

Dec

-14

Mar

-15

Jun

-15

Sep

t-1

5

Dec

-15

Mar

-16

HICP trend

Eurozone -19 Greece

Medium-term developments

• Implications of prolonged evaluation to the economy

• The negative impact of the upcoming changes is already discounted in the

decisions of the financial units, households and firms, regardless of the actual

measures

• High cost for banks for drawing liquidity from ECB via the ELA

• Even though uncertainty is not beneficial for economic activity, the delay in the

agreement about the measures limits their recessionary effect this year

(transfer to 2017 carry over effect)

• Immediate effects from the completion of the evaluation (measures of almost €2 bn. for 2016)

• Pressures on households’ disposable income from tax measures, increases in

contributions, changes to the social security system

• Increase in the business cost from higher indirect taxes in energy, as well as

from a possible increase of employer’s contributions

Medium-term developments

The ‘other’ side of a deal:

• Upcoming negotiations for facilitating public debt servicing

• Almost certain acceptance of the Greek bonds as collaterals by the ECB (return to the waiver) reduction of the cost of capital

• Strengthening of depositors' confidence in the outlook of the Greek economy and the robustness of the banking system:

o Gradual return of deposits;

o Greater ease of providing credit and

o Acceleration of lifting capital controls

• International credibility recovery: completion of a programmeevaluation after 1.5 year

Nonetheless, in order to restore the credibility of the country internationally, particularly to investors, a regular implementation of the agreed measures and policies is required, not their partial or selective implementation

Medium-term developmentsThe banking system still under transition – limited liquidity in the economy

• Level of private sector deposits almost on par with that of July ’15 (+€854 mil. up to

past February, -€18.8 bn. since last year)reliability is not recovering

• Ongoing implementation of the new law for loan borrowers and NPLs

• New, sizeable drop in the funding for businesses (-7.7% in Jan. - Feb.)

• A sequence of developments is necessary for an increase in private sector deposits

a heating of investments is possible afterwards (from Q4/2016)

Boost to investment activity from the PIP:

• A significant acceleration has been noted since the beginning of 2016; financing of

€2.7 bn. in Dec. ’15

• Bigger PIP budget in 2016 (+ €350 mil.), also from the start of the new NSRF, for the

programming period 2014 - 2020

However, the activity of the HRADF remains low:

• Completion of ‘mature’ tendering procedures, low activity regarding non-completed

calls for tenders and those programmed for the current year

Medium-term developments

Further factors which may impact investment

• Tension from wars in the wider region

• Possible decline in international demand

• Low energy cost

The refugee-immigrant inflows are an additional parameter influencing the socio-economic conditions

• Presently, a financial evaluation of their effects would be difficult

• Intensified concerns by the uncertainty regarding the future trend of the flows, as well as the ability of an effective coordination within the state services, with other countries and international organisations

Medium-term developments

External Sector

Exports

• Stability in exported products excluding fuels – ships in early 2016, against a

significant increase in the previous year notable loss of growth dynamics if

this trend continues or results in a decrease

• The euro / dollar exchange rate is steadily low improved cost competitiveness

• Increase of receipts from tourism for one more year, albeit smaller than in 2015

• Decline of the negative impact of fuels

• New drop in international transport services

Mixed effects exports around last year’s level or slightly lower

Medium-term developments

External Sector

Imports

• A stronger reaction than exports to each easing of the capital controls

o Large transfer of import needs in the future due to limitations in capital mobility,

which currently prevents their widespread decline

• New decline in imports, due to the drop in consumer demand and investment, as well as from exceptionalpurchases in the first half of 2015 (≈ -5%)

o Last year’s strong implications of the capital controls is an

inhibiting factor to their fall

Predictions 2016

• Private consumption decline as a result of the implementation of new measures

and from the basis effect of the first half of 2015 (≈ -1.0 to -2.0%)

o Fall moderated by higher employment in the first half of 2016 compared to past year

• Reduction in public consumption as a result of the restart of fiscal adjustment (≈

-2.0 to -3.0%)

o Single payroll in the public sector

• Postponement of investments (≈ -4.0 to -5.0%) because of:

o Limited investment resources (excluding the PIP)

o Decline in domestic as well as in international demand for Greek products

o Low activity in concessions - privatisations

o Outstanding loan settlements

o Pending new measures

2016: Slight deepening of recession, to 1.0%

Predictions 2016 Slight increase in unemployment

• Due to the implications of the new measures on private consumption and subsequently on employment in the sectors producing goods - services for final consumers (Retail Trade – Restaurants)

• Slight increase of employment in Tourism, fall in Manufacturing

• Construction: Increase in public works due to PIP – decline in Building activity

• Contribution to employment by the public sector through public works programs

Slightly greater unemployment in 2016 (25.2%)

Relatively stable prices, after three years of intense fall

Continuing deflationary effect from a decline in oil prices (smaller than last year)

New deflationary factor: Lower disposable income, due to the new fiscal measures

The increase in V.A.T. has significantly contained the deflation since Q4 ’15

o It will continue and be reinforced by the upcoming, new increase in indirect taxation

Inflation at 0% or small price fall in the current year

ΙΟΒΕ study presentation:

THE CONTRIBUTION OF THE MINING INDUSTRY TO THE GREEK ECONOMY

The complete study is available here: http://iobe.gr/research_dtl.asp?RID=123

Study Scope

Evaluation and assessment of the broader economic importance of the mining industry in Greece

Examination of the conditions that will ensure its sustainability and further development

Min

ing

Ind

ust

ry

Mines - Quarries

Lignite mining

Mining of non-ferrous metals

Mining of aggregates and marbles

Mining of industrial minerals

Basic Metallurgy*Magnesite products,

alumina - aluminum, ferro-nickel

Cement-Industry*

* Vertical integration of Greek raw mining materials

The sales value of the mining industry is estimated at €2.3 bn. in 2014 from €2.5 bn. in 2009

Decline in value added by 50% over the same period, with an increase in 2014

Sources: GMEA, PCC Annual Reports, Eurostat, Data Processing: ΙΟΒΕ

N.B.: Figures for 2014 from estimates. All the values are expressed in current prices.Source: Eurostat

1,19 1,2 1,2 1,2 1,1

1,3 1,3 1,3 1,1

1,0

2,50 2,452,48

2,32

2,152,27

0,0

0,5

1,0

1,5

2,0

2,5

3,0

2009 2010 2011 2012 2013 2014

bn

.€

Sales

Vertically-integrated manufacturing

Mining-quarrying activities

Mining industry

896 818 776875 856

701574 592

705

576493

424329

202

94202

1.601

1.393

1.270 1.299

1.185

903

667795

0

200

400

600

800

1.000

1.200

1.400

1.600

1.800

2007 2008 2009 2010 2011 2012 2013 2014

mil.

€

Gross Value Added

Vertically-integrated manufacturing

Mining-quarrying activities

Mining industry

Employment was relatively stable from 2007 to 2014

* FTEs: Full – Time Equivalents

Source: Eurostat

Increase of the share to the Industrial sector’s production from 2.9% in 2007 to 4.2%

1,9%

2,2% 2,2%2,3%

2,7% 2,7%2,9%

3,0%

1,0%1,2%

1,0% 1,1%1,2% 1,1% 1,1% 1,1%

2,9%

3,4%3,2%

3,4%

3,9% 3,8%4,0% 4,1%

0,0%

0,5%

1,0%

1,5%

2,0%

2,5%

3,0%

3,5%

4,0%

4,5%

2007 2008 2009 2010 2011 2012 2013 2014

Employment (% of total Industry)

Mining-quarrying activitiesVertically-integrated manufacturingMining industry

10,812,7 12,1 11,7 12,3

11,1 11,3 11,6

5,9

6,85,5 5,3

5,5

4,8 4,5 4,2

16,7

19,5

17,6 17,0 17,8

15,9 15,8 15,8

0

5

10

15

20

25

2007 2008 2009 2010 2011 2012 2013 2014

tho

usa

nd

FTE

s*

Employment

Vertically-integrated manufacturing

Mining-quarrying activities

Mining industry

The value of exports amounts to 50% of the total sales of the mining industry

38

Source: GMEA, Activity Report 2014

The dispersion of products, applications and export destinations contributes to thesustainability of activity and the reduction of risks

Aluminium19%

Nickel19%

Marble11%

Alumina10%

Betonite6%

Other Minerals

6%

Mixed Sulphides

4%

Perlite3%

Bauxite 2%

Cement20%

Share of exports based on the value per mining product for 2013

0

20

40

60

80

100

2008 2009 2010 2011 2012 2013

%

Ratio of exports to total sales of the Mining Industry

Metallic Minerals Metals

Industrial Minerals Marbles

Cement

Overall impact on the GDP and on employment is approximately 3.4% (€6.2 bn. and 118 thousand, respectively)

39

* Full-time Equivalent

Sources: Multi-regional input-output model ΙΟΒΕ, Eurostat

Particularly strong effects on a local level (Parnassos-Gkiona-Oiti-Elikonas areas in Central Greece, prefectures of Kozani and Florina in Western Macedonia, etc.)

Activity Direct Indirect Induced Total

Impact on GDP (mil €.)

Extracting activities 741 407 1,547 2,696Manufacturing 324 247 743 1,314Electricity 772 553 875 2,200Total 1,837 1,207 3,164 6,209

Impact on employment (FTE*)

Extracting activities 11,196 11,191 32,490 54,877Manufacturing 5,866 6,557 15,593 28,017Electricity 6,833 9,424 18,565 34,822Total 23,895 27,173 66,648 117,716

Better growth prospects entail the elimination of obstacles

Spatial

•Mapping of areas with deposits

•Provision for areas with deposits of high economic significance

•Provision for land uses for the years after exploitation

•Review of regional spatial plans

•Update of studies for protected areas

Issuance or permits

•Simplification of procedures according to the spatial planning

•Issuance of guides and manuals

•Implementation of the commitment for operating and maintaining the Electronic Environmental Registry of works, according to law No. 4014/2011

•Avoidance of duplications and of parallel actions

Other legal issues

•Law codification and fast information of all the concerned parties

•New law on quarrying

Research - Education - Knowledge

•Support of research institutions concerned with RMM

•Creation of a GIS database

•Education and training of geoscience students and geoscientists about the sustainable development of RMM

•Teaching of classes about geosciences in lower and secondary education

Publication of information about the implementation of best

practices

Ensuring of the social license

• More effective functioning of supervising authorities

•Prevention of quarries functioning illegally

•Establishment of financial guarantees

•Intensification of the Regional Administration Organisations’ offsetting benefits

• Restoration of abandoned mines

• Establishment of a forum for the National Policy for the Development of Mineral Resources Resources

40

Priorities of policies for Raw Materials - Minerals

First and most important step: specialisation and implementation of the National Policy for the Development of Mineral Resources

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