Recent global crises, from the COVID-19 pandemic to geopolitical tensions in Ukraine and the Middle East, have put a significant strain on European economies. Greece, with its long-standing structural weaknesses, faces additional difficulties. High public debt, low employment rates, the need to upgrade the skills of the workforce, and the cost of transitioning to a greener energy system are long-standing issues, while natural disasters such as fires and floods are straining public resources.

Despite these difficulties, the Greek economy in 2023 showed signs of resilience, supported by prudent fiscal policies and modest productivity growth, according to the KEPE in the 2024 annual report of the National Productivity Council of Greece.

Greece's GDP grew by 2% in 2023, ranking the country seventh among EU member states. Employment grew by 1%, hours worked by 1.7%, and labour productivity per worker improved by 1%. Total factor productivity (TFP) recorded a significant increase of up to 3.8%, reflecting improvements in the efficient use of resources. Private consumption remains the main driver of GDP growth, with investment also playing an important role.

However, trade deficits continue to weigh on the economy. In 2023, imports accounted for 37.5% of GDP, far outstripping exports, which reached 22.6%, highlighting Greece's heavy reliance on imported goods.

One of Greece's most notable achievements is its progress in fiscal consolidation. The general government deficit has been reduced to 1.6% of GDP, well below the EU average (3.5%). At the same time, in 2023 debt as a percentage of GDP was reduced by more than 10 percentage points in one year and by more than 45 percentage points from 2020, reaching 161.9%.

Despite positive fiscal outcomes, productivity remains a critical challenge. Productivity in industry declined significantly by 8% in 2023 due to increased labour use without a corresponding increase in value added. High-tech and knowledge-based small and medium-sized enterprises (SMEs) have experienced a 20% drop in productivity since 2009, highlighting weaknesses in innovation. Regional disparities are also pronounced and persistent.

The metropolitan areas of Athens and Thessaloniki have recorded some of the largest labour productivity declines in Europe over the last decade, falling by 23% and 21%, respectively.

Cost competitiveness has improved. The overall exchange rate reached its lowest levels since 2010, while unit labour costs remained among the lowest in the EU. However, the heavy reliance on imported inputs for the production of exported goods limits the country's economic autonomy.

Greece ranks only 25th among EU countries in digital competitiveness. Therefore, accelerating the digital transition is imperative to close the gap with its European partners, improve economic efficiency, attract investment, and improve its already upgraded competitive position in international supply chains.