Pharmaceutical market in Greece remains challenging amid govt austerity measures

The macro-environment for the Greek pharmaceutical industry remains challenging according to a new report from Espicom Business Intelligence. In addition to the huge budget deficit, recession in Greece is still ongoing with Gross Domestic Product projected to contract further in 2010 and 2011, after a contraction of 2.0% in 2009.

Greece has an aging population, and latest projections expect that the population aged 65 and over will constitute around 20.5% of the total by 2015. As a result, health care is increasingly focused on preventative care and there will be a continuing demand for new therapies so that patients can be treated more effectively.

The Greek Prime Minister, George Papandreou, has announced strict austerity measures to reduce the government deficit, facing considerable pressure from international markets and the European Commission. Following concerns about Greece defaulting on its debt spreading to other euro area member states, euro zone ministers approved a 30 billion euros ($42 billion) rescue package for Greece on April 12, 2010.