Greek industry is producing more, but lags in the structural conditions needed to make that growth sustainable. That is the central message of the Composite Structural Competitiveness Index, prepared by Deloitte for the Hellenic Federation of Enterprises (SBE) and its institute (INSBE).
The survey’s interim results compare Greece with 23 other EU member states across eight dimensions of competitiveness. The country ranks no higher than 13th in any of them and is below the EU average in all eight.
In the same group as Bulgaria and Romania
The index divides the 24 countries into three groups. Greece is in the lowest-performing group, alongside Poland, Slovakia, Romania, Hungary, Croatia, Latvia and Bulgaria. The top group comprises Denmark, Germany, Sweden, Austria, Finland, the Netherlands, Belgium and Ireland.
The assessment is based on 108 indicators from 20 sources, including Eurostat and the OECD. The indicators are organised into eight dimensions and 23 subdimensions, covering the entire industrial competitiveness chain: from operating conditions and productive resources to technology, productivity and final outcomes.
Greece’s ranking in the eight competitiveness dimensions (among 24 EU countries)| Dimension | Rank (/24) | Greece | EU average |
|---|
| Energy environment & network reliability | 24th | 4,31 | 6,26 |
| Productivity & efficiency | 23rd | 2,84 | 4,33 |
| Business & regulatory environment | 21st | 4,82 | 6,00 |
| Circular economy & social resilience | 20th | 5,22 | 6,20 |
| Infrastructure, networks & transport | 14th | 5,35 | 5,98 |
| External orientation & international competitiveness | 14th | 4,76 | 4,79 |
| Human capital & skills | 13th | 5,66 | 5,72 |
| Technology & innovation | 13th | 4,56 | 4,87 |
Source: Deloitte for SBE/INSBE, Composite Structural Competitiveness Index (interim results). Ranks 20–24 Ranks 13–14
The gap from the average is relatively small in technology. In skills and external orientation, however, the relatively strong overall rankings are largely due to low labour costs and price competitiveness, while the other subdimensions lag significantly. The biggest shortfalls are concentrated in three areas: energy, productivity and the institutional environment.
Energy: last place, with 72% of businesses seeing it as an obstacle
Energy is the area in which Greece lags furthest behind. It ranks 24th among the 24 countries, with a score of 4.31 against the EU average of 6.26. Denmark, the top performer, scores 8.02.
Some 72% of manufacturing businesses consider energy costs an obstacle to investment, the highest proportion among the countries in the sample. Electricity costs for industrial users put Greece 23rd. It ranks in the same position for dependence on energy imports and diversification of energy supply.
The picture is different for manufacturing’s energy intensity, where Greece ranks fourth, while it is sixth out of 23 countries with available data for natural gas costs. The findings identify electricity costs and energy dependence as key weaknesses, without covering all aspects of energy efficiency.
More production, but not enough investment depth
Manufacturing output volume has increased by 16.2% compared with 2021. Greece ranks third in the EU on this indicator. The picture changes when the structural conditions needed to sustain and build on that growth are examined.
Greece ranks last for gross fixed capital formation as a share of gross value added (GVA). Capital stock per worker puts it 23rd, while total factor productivity ranks 24th. Overall, Greece scores 2.84 for productivity, compared with the EU average of 4.33 and Ireland’s 8.17.
Manufacturing also remains small in scale. The sector’s GVA as a share of GDP and the share of large businesses put Greece in last place. As the study notes, rising output volumes go hand in hand with low investment intensity and a low capital stock per worker. The SBE has identified the modernisation and expansion of the productive base as a policy priority.
Institutional weaknesses and difficulty accessing finance
Greece ranks 21st for its business and regulatory environment, with a score of 4.82 against an average of 6.00. The biggest problem lies in institutions: the “Institutions, transparency & justice” subdimension scores just 2.24, the country’s lowest result across the entire study.
Greece ranks last among the 23 countries with available data for the time taken to resolve civil and commercial disputes. It also ranks 20th for regulatory enforcement and 19th on the corruption perceptions index. The time taken to obtain an operating licence puts it 20th.
For access to finance, Greece ranks last among the 17 countries in the B-READY index for access to financial services. It also ranks 21st for the share of businesses that consider the availability of finance an obstacle to investment. The SBE’s conclusion is that investment incentives are not enough unless they are accompanied by competitive energy, access to capital and predictable, faster procedures.
Relative strengths: costs, prices and technology creation
The study identifies five subdimensions in which Greece records its strongest comparative performance. It ranks first for labour costs, fifth for price and quality competitiveness, ninth for technology and knowledge creation, 11th for tax competitiveness and 12th for the efficiency of transport services.
Cost and price advantages also support the overall picture for external orientation. Greece’s 14th-place ranking in this dimension, close to the average, is mainly due to its fifth-place ranking for price competitiveness. By contrast, it ranks 21st for export performance and 18th for attracting international capital.
Greece ranks second among 22 countries for new or significantly improved products. Its relatively strong performance in introducing new products is not matched by a corresponding technological upgrade of the productive base: Greece ranks 20th for the digital transition, 21st for the use of industrial robots and 20th for the share of medium- and high-technology industries in GVA. It ranks last for exports of high- and medium-high-technology products.
A similar gap is evident in skills. Greece’s 13th-place ranking for human capital is largely due to its first-place ranking for labour costs, which falls within the same dimension. Results are significantly weaker in the other three subdimensions: the country ranks 21st for talent availability, 22nd for digital skills and 22nd for labour market dynamism. At indicator level, it ranks 24th for overqualified workers and 23rd for lifelong learning.
The proposal: a unified government strategy
The SBE is calling for a unified government strategy for industry, supported by a common monitoring tool. The tool would be used by the Government Committee for Industrial Policy. The strategy would include shared priorities for the ministries concerned, clear responsibilities, a timetable and measurable targets, as well as ongoing dialogue between the government and industry.
The proposal is organised around five pillars:
- Competitive energy: long-term supply, self-generation, energy savings and networks.
- Effective institutions: predictable licensing and faster dispute resolution.
- Investment and finance: stable incentives, modernisation and growth for SMEs.
- Technology and skills: applied research, automation and training.
- External orientation and regions: links to ports, organised industrial zones and suppliers.
The index is intended to serve as a permanent monitoring mechanism, with an annual assessment. Each cycle would begin with data and business surveys, lead to a diagnosis and targeted interventions, and conclude with a new assessment and feedback.
* See the accompanying material column for details.