A press release from Hellenic Production notes that the study “Productivity and Growth,” conducted by the Foundation for Economic and Industrial Research ( IOBE ) on behalf of the Hellenic Federation of Enterprises (SEV ) and presented a few days ago, yields very important conclusions.
It is fully documented that the problem of low productivity is decisive for the future of the Greek economy, for growth, prosperity, and living standards.
Specifically:
- Labor productivity in 2024 remains at 2000 levels, while in the EU it has increased significantly, widening the gap between us and the European average.
- At current 2024 prices, Greece ranks 23rd in the EU-27 in terms of productivity per worker.
- With the exception of financial services, industry emerges as the most productive sector of the economy and the one with the smallest gap relative to the European average among sectors, with industrial productivity ranking 14th in the EU.
- Industrial productivity, at 62,900 euros per employee (GVA at current 2024 prices), is 60% higher than the economy-wide average (39,600 euros), and 2.5 to 3 times higher than in the Trade (€25,200), Construction (€22,900), and Accommodation & Food Services (€20,400) sectors.
- Manufacturing productivity is improving (+2.7% over the 2017–2024 period), while productivity in the economy as a whole is declining (-0.7% over the same period).
- Large manufacturing firms show the smallest productivity gap relative to the European average, at just 17%.
The study fully highlights the positive correlation between wages and productivity, as well as the correlation between productivity and invested capital, making productivity growth an urgent priority and a prerequisite for growth and income improvement.
Combined with findings showing that productivity in large modern industrial plants is even more than ten times the economy’s average, and taking into account the very strong multiplier effects of manufacturing on the rest of the economy (multipliers ranging from x3 to x6 depending on the size of the enterprise), as documented in previous IOBE studies, very clear conclusions emerge regarding the direction in which the Greek economy must move in order to converge with more developed countries.
The Chairman of the Board, Mr. Michalis Stassinopoulos, emphasized in a statement: “The IOBE study is a valuable tool and compass for the Greek economy. The manufacturing industry is the sector par excellence that contributes and can contribute even more to significantly boosting the economy’s productivity.
Changing the economy’s production model by significantly strengthening the manufacturing industry pillar is the only path to growth and prosperity, to higher incomes and quality jobs. It is a national goal that must unite all Greeks and all political forces.”