BUSINESS

Doing business in Greece gets ever harder

DIMITRA MANIFAVA

TAGS: Economy

Greece dropped three spots in the Doing Business 2017 chart issued by the World Bank on Tuesday, sliding from 58th place last year to 61st this year out of 190 countries.

This is the second consecutive year that Greece’s position has deteriorated on the chart, as constant obstacles to entrepreneurship drive away investment, one of the main requirements for the recovery of the Greek economy. In the World Bank’s Doing Business chart, which is accompanied by a report, the higher the ranking, the more conducive the country is to the starting and operation of a business. The countries are ranked according to how well they score in 10 areas.

Greece got the same score this year as in 2015. This points to stagnation in a period when speedy reforms are imperative, while other countries have taken additional steps and gained an advantage over Greece in enhancing business activity and attracting investors.

Greece’s position has deteriorated in eight out of 10 areas, with the World Bank making special reference to corporate taxation in this country. It noted the total amount in taxes and social security contributions that businesses have to pay comes to 50.7 percent of their earnings. The average rate among Organization for Economic Cooperation and Development countries is 40.9 percent.

In Greece a business needs to operate for 193 hours per year to cover the amount of taxes and contributions due, while the OECD average stands at 163.4 hours, the report added. On average, it takes 13 days to start a business in Greece, against an OECD average of 8.3 days.

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