DYTIKI MAKEDONIA - Economy
A strong energy sector
Although the primary sector employs almost one quarter of the total labour force, it generates only 19% of GDP. The main crops are grain cereals and fodder crops.
The bulk of output in the secondary sector (some two-thirds) is generated by mining and quarrying and by energy production. The nomós of Kozani, which is the most heavily industrialized in the region, accounts for 97% of Western Macedonia's energy production and 16% of Greece's total. Western Macedonia has a number of large State-owned companies such as the DEI (National Electricity Board ? lignite extraction and power generation) and Aeval (manufacture of nitrate fertilizers), which employ the bulk of the region's labour force. The private sector, on the other hand, is characterized by a wealth of very small businesses, which have limited vertical integration, lack modern technology and skilled labour and have high operating costs.
Fur production used to be one of the region's main manufacturing activities, with some 4 000 companies generating 7% of Greece's total exports. Today, the fur trade has retrenched and a large number of businesses have closed down as a result of high interest rates, the cost of finance, international competition and high production costs. The rearing of animals for fur, which also contributed to the vertical integration of fur processing, is another sector that has been affected by the recession, animal numbers having fallen by some 50%.
In 1999, Dytiki Makedonia accounted for less than 3% of Greek expenditure on research and development. About 51% of the research and development expenditures came from the higher education sector, 35% from the government sector and 14% from the business enterprise sector.
The region?s communications network is inadequate. Its major roads cross rough mountain passes, and in winter communications are hampered by snow. Its rail network does not serve passenger traffic, and the two airports ? at Kastoria and Kozani ? are underused.
If information is available, please add comments on the following subjects:
- Productivity, competitiveness, imports/exports/foreign investments
- Restructuring, conversion, privatization (policy, state of progress, etc.)
|
|