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Despite the global economic slump, Greece's economy will continue to show strong growth projected at 3.8 percent this year. The economy will be boosted by a stable macroeconomic environment, the adoption of the euro, the implementation of IT development programs, the strengthening of competitiveness and infrastructure, and the development of trans-European networks, among other things. Contributing to this growth are investments liked to the 2004 Olympic Games, the implementation of investment incentive laws, deregulation of the energy and telecommunication sectors, opportunities created by the country's economic reconstruction plan for the Balkan region, and the increase in productivity due to mergers, consolidation, and international cooperation. According to government forecasts, investments will rise 9.5 percent this year, while return on invested capital will climb 2.3 percent. Meanwhile, the government predicts a decline in unemployment from 10 percent in 2002 to 9.1 percent this year. Inflation is expected to slide by 2.7 percent. Greece will continue to safeguard fair competition, create needed institutional guidelines to streamline the product and capital markets, and further open up key business sectors. Under a law passed last year, Greece strengthened transparency and increased protection of investors interests by implementing new rules on corporate governance and internal audit of public limited companies. The government also completed an extensive program of reforms to streamline the tax system. In 2002, the government also instituted several reforms governing public utilities. Deregulation of Greece's telecommunication sector resulted in a steep decline in rates. Mobile telephony currently accounts for around 7 percent of the country's GDP. And as the government ended its monopoly over the energy sector, Greek households found themselves paying the lowest rates within the European Union. Meanwhile, Greece continues to promote the development and financing of new technology-related enterprises through tax breaks for investments on research and technology, as well as venture capital. The government also provides several investment incentives, including tax exemptions, interest-rate subsidies and sizeable direct grants, aimed at foreign capital. Greece's reconstruction plan for the Balkans is just one source of investment opportunities. More information about the Greek economy, investment incentives, legal and tax guidelines, and other forms of support can be obtained from The Hellenic Center for Investment (ELKE).
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