Productivity in the Information and Communications Technology sector in Greece has increased in recent years, showing a clear improvement since the years of the economic crisis. However, as shown by a new study by the Foundation for Economic and Industrial Research (IOBE), the gap between Greece and the rest of the European Union remains significant.
Specifically, based on data from the study “Productivity and Growth”conducted by IOBE on behalf of the Hellenic Federation of Enterprises (SEV), productivity in the Information and Communications Technology (ICT) sector declined significantly (-3.3%) during the 2009–2016 period, while wages remained virtually stagnant (+0.1%).
The gap with the EU
In the following years, however (2017–2024), the sector began to recover, with productivity increasing by 1.5% annually and the average wage rising by 1.9%. In fact, in 2024, the sector recorded productivity of 59,700 euros per employee, a level significantly higher than the economy-wide average (39,600 euros).
Nevertheless, productivity in the Information and Communications Technology sector in Greece lags significantly behind the rest of Europe, as in 2024 it amounted to just 51% of the EU average, with the country ranking 22nd among member states.
A structural productivity problem for the Greek economy
In general, according to the IOBE study, the Greek economy currently faces a structural productivity problem that limits its potential for sustainable growth and convergence with Europe. Despite the recovery of recent years, labor productivity in 2024 remained roughly at the 2000 level, while the gap with the EU average widened.
At current 2024 prices, Greece ranks 23rd in the EU-27 in terms of productivity per employee.
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.
Furthermore, industrial productivity, at 62,900 euros per employee (GVA at current 2024 prices), was 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.
On the other hand, manufacturing productivity improved (+2.7% over the 2017–2024 period), while it declined for the economy as a whole (-0.7% over the same period). At the same time, large manufacturing firms recorded the smallest productivity gap relative to the European average, reaching just 17%.
