The Greek economy maintains higher growth rates than several European Union countries, however, this progress is not accompanied by substantial convergence in living standards or by a profound transformation of the productive sector, according to the GSEE’s annual report on the Greek economy and employment.
The Confederation maintains that the economic picture is characterized by relative stabilization but continues to exhibit significant structural weaknesses. Despite continued GDP growth in 2025, Greece remains far below the European average in terms of real per capita income, which stands at 19,400 euros compared to 34,110 euros in the EU-27. In terms of purchasing power, the country stands at just 68% of the European average.
Growth Centered on Consumption
The report notes that the current growth model continues to rely primarily on private consumption, which accounts for 67.8% of GDP compared to 51.2% in the EU. According to the GSEE, excessive reliance on consumption limits the potential for sustainable development, as it is not accompanied by a corresponding strengthening of the productive base.
Although the share of investment rose to 16.9% of GDP from 11% in 2019, it still lags significantly behind the European average (21.3%). Furthermore, the composition of investment raises concerns, as there has been a significant increase in residential investment, while the share of investment in technological and mechanical equipment has declined.
At the same time, net exports remain negative and the deficit is widening, a fact which, according to the report, highlights the economy’s continued dependence on imports.
Improvement in public finances, but...
On the fiscal front, the GSEE acknowledges the significant reduction in public debt, which fell to 146.1% of GDP in 2025 from 209.4% in 2020—a development attributed in part to high primary surpluses.
However, it emphasizes that fiscal stability alone is not sufficient to ensure long-term growth unless it is accompanied by productive investments, technological upgrades, wage increases, and a rise in domestic value added.
Labor Market: More Jobs, but Not Better Ones
The picture in the labor market appears to have improved in terms of quantitative indicators. The employment rate rose to 64.6%, and unemployment fell to 8.9% in 2025.
Despite this improvement, Greece still lags behind the European average in terms of employment, while regional and social inequalities remain pronounced. Lower employment rates are observed among women, young people, and people with disabilities.
Particular emphasis is placed on long-term unemployment, as more than half of the unemployed (55.8%) have been out of the labor market for more than a year—a rate significantly higher than the European Union average.
Wages continue to be under pressure
The report notes that the increase in nominal wages has not translated into a substantial recovery in purchasing power.
The average real annual wage rose by just 0.3% during the 2019–2025 period, while it remains 1.3% lower than in 2021, when the period of high inflation began.
At the same time, Greece continues to have one of the highest weekly work hours in Europe, a fact which, according to the GSEE, suggests that the labor market is characterized not only by low wages but also by high work intensity.
Persistent Social Pressure
The Confederation notes that the economic recovery has not led to a corresponding improvement in social conditions.
The risk of poverty remains high, particularly for young people, while in-work poverty continues to exceed the European average. Furthermore, more than one in three households with dependent children have overdue utility bills.
The GSEE’s Proposal
In conclusion, the report argues that the country needs to transition from a model based on consumption, construction, and imports to a new development model grounded in productive reconstruction, quality investments, industrial and technological upgrading, and improved productivity.
At the same time, it calls for a substantial increase in real wages, expanded coverage of collective bargaining agreements, active employment policies, and measures to improve the quality of work, arguing that only in this way can economic growth be transformed into real convergence in living standards and sustainable social development.
*See the full INE-GSEE report in the right-hand column under “Related Materials.”