Low productivity remains a major hurdle for Greece’s economy, frequently flagged by domestic and international analysts and institutions as a drag on competitiveness. The Hellenic Federation of Enterprises (SEV) President Spyros Theodoropoulos this week stressed the need to link wage growth with productivity gains.
Recent Eurostat data reveal a striking paradox: Greeks work more hours than anyone else in the EU—nearly 40 a week—well above the EU average of 36.
However, this intense work schedule does not translate into corresponding levels of productivity. Greece’s hourly labor productivity is under 60% of the EU average, a gap flagged by the European Commission in its 2024 Semester report.
According to the Commission, while Greece has maintained steady growth since 2021, labor productivity still trails behind the rest of the bloc. In 2024, Greece’s GDP per capita in purchasing power standards ranked second-lowest in the EU, at just 70% of the EU average. In 2023, Greece had the lowest labor productivity per hour worked across the EU, at only 56.2% of the bloc’s average.
This productivity gap is partially rooted in the structure of the Greek economy. Sectors with traditionally low productivity—such as accommodation and food services—occupy a larger share of employment compared to the EU average. In contrast, employment in medium- and high-tech manufacturing in Greece was only 1.4% of total employment in 2024, far below the EU average of 6%. Moreover, these roles are heavily concentrated in the greater Athens area.
The Greek business landscape is also dominated by micro and small enterprises, which tend to face significant barriers to accessing capital, scaling operations, competing internationally, and investing in research and development—further limiting productivity potential.
To boost productivity, Greece must pursue both internal modernization and broader structural changes, argue prominent economists. On one hand, sectors can increase output by updating technology and improving work processes. On the other, the economy as a whole can benefit by shifting resources from less productive areas to more dynamic ones, even if productivity within those target sectors remains unchanged.
Source: tovima.com
