In less than 2 months, with speculation on the drachma no longer a threat, interest rates returned to normal levels. A similar wave of speculation was beaten back in fall 1997, following the Asian financial crisis. One of the successes of recent Greek economic policy has been the reduction of inflation rates. For more than 20 years, inflation hovered in the double digits, but a combination of fiscal consolidation, wage restraint, and strong drachma policies resulted in lowered inflation. High interest rates have been a significant problem, despite recent cuts in both treasury bill and bank rates for savings and loans.
Tourism is a major source of foreign exchange earnings.
Although it is one of the country's most important industries, it has been slow to expand and suffers from poor infrastructure. With more than 10 million tourists visiting Greece in 1996, the tourist industry faced declining revenues, partly due to the strong drachma. The food industry is one of the most profitable and fastest-growing areas of manufacturing with significant export potential. Other important areas include textiles, building materials, machinery, transport equipment, and electrical appliances. Greece is traditionally a seafaring nation and has built an impressive shipping industry based on its geographic location and the entrepreneurial ability of its ship owners.