The period under examination spans between two events of political history: the 1897 war and the Asia Minor Catastrophe.

Economic developments follow a reasoning of their own and do not fall under conventional patterns. General economic trends cover large periods, they coincide however with the events of the conjuncture of circumstances. The agricultural production remains the dominant factor in the agricultural life of the country throughout the nineteenth and the first half of the twentieth century. The economic developments of the beginning of the twentieth century are determined to a large extent by the modernizing economic policy adopted by Harilaos Trikoupis in the previous phase and its consequences. The bankruptcy of 1893 resulted to establishment of the International Finacial Control of 1898, which at the same time was related to the obligations imposed by the 1897 defeat. Large works such as the railways, that have been the basic choices of the Trikoupist period, are completed in this phase and positively affect the whole of economy. Shipping is in a constant process of growth with the definite passage from sail to steam.

Between 1898 and 1909 economy begins to recover. The policy of Georgios Theotokis, prime-minister for the greatest part of the period, achieves a relative monetary and exchange stability. At the same time, performance in foreign trade has improved, whereas the slight excess of imports over exports is counter-balanced by the invisible resources originating from shipping and immigration abroad. Some efforts are observed in the development of industry to no avail though. The raisin issue held a prominent partr in the agricultural economy of southern Greece of the time and triggered social disturbances, which had no spectacular aftermath however.

Interest in the banking sector is not as intense as in the previous phase. This trend resurfaces in the 1910's. As concerns taxation, indirect taxation and the relatively small participation in public burdens of high-income households are still the dominant trend.

In the monetary level an improvement of the exchange status of drachma is observed which is related to the imporvement of public finance.

The amelioration of the country's finance creates the social preconditions for the military coup of Goudi in 1909 and the ensuing overall attempt for recovery by Eleftherios Venizelos, the military venture between 1912 and 1922 in particular. The state in that period had to face acute economic problems which are justified by the continuous involvement in war. War mobilized on the one hand the productive human resources of the country, on the other hand it had exhausted the potential of public finance. In that period the Greeks of the Diaspora transfer part of their activities to Greece and participate more actively in the economo-social affairs of the Greek state.

After the entrance of the country in the First World War, an allied aid was anticipated, the so-called Allied Credits. On this basis the Asia Minor Campaign has been planned. Their interruption after the political change of November 1920 with the reinstatement of King Constantine I in combination with the inability of contracting new loans contributed -from the economic point of view- to the debacle of the front. The Asia Minor Catastrophe finds the country in a pathetic economic state.