The Greek economy continued to grow at a rate that exceeded the Eurozone and EU average in the period 2023–2024, according to the National Productivity Council’s Annual Report for 2025. Real GDP increased by 2.3%, one of the highest rates in Europe, reflecting the recovery in economic activity and the improvement in key labor market indicators.
Productivity recorded a mild recovery: labor productivity increased by 1% per employee and by 0.77% per hour worked, when in the Eurozone and the EU the changes were marginal. For the period until 2026, a cumulative increase of 2.3% in GDP per employee and 2% in GDP per hour worked is forecast. Total factor productivity (TFP) strengthened by 1.1% in 2024, while capital productivity increased by 1.5%, indicating a gradual normalization and better utilization of investments.
The Report notes that growth was mainly supported by investments with medium- to long-term returns, especially public ones, as well as by the reduction of unemployment. This explains – as stated – the relatively limited improvement in productivity. At the same time, it is emphasized that maintaining high growth rates requires further increase in employment through the integration of those who remain outside the labor market and education, as the “stock” of unemployed people with lower skills is limited.
A critical factor for sustainable growth remains fiscal stability. The reduction in the debt-to-GDP ratio and the significant primary surplus in 2024 — the result of spending restraint and revenue growth — create room for future investments in new technologies, innovation and strategic sectors such as agri-food, clean energy, raw materials and defence. At the same time, upgrading human resources through modern education and training systems is considered essential.
Public administration remains characterized by low efficiency, lagging behind the Eurozone average. The Report highlights the need for the adoption of performance-based budgeting, greater transparency and enhanced accountability.
In the field of Research and Development, Greece is making progress, but remains below the European average in terms of R&D intensity, business spending and commercial exploitation of research. Despite high scientific output, patenting and high-tech exports remain low. The innovation ecosystem remains strongly academic, with the Report highlighting the need to strengthen partnerships between universities, research centres and industry.
The country’s digital competitiveness continues to lag behind despite reforms over the past five years. Businesses are slow to adopt digital technologies, while gaps remain in workers’ digital skills and cybersecurity management.
On the manufacturing side, manufacturing has improved, but its share of GDP (8.7%) remains well below the EU average (14%). Strengthening the industrial base is a strategic priority. The Recovery and Resilience Fund plays a central role, financing the digital transformation of businesses, the creation of new industrial parks, the CO₂ capture and storage framework and flagship programs such as “Smart Industry”, “New Industrial Parks” and “Produc-e Green”. Important initiatives are also being developed in the domestic defense industry, aiming to strengthen capabilities and expand international collaborations.
The Report concludes that improving productivity, technological empowerment, upgrading institutions and strengthening the industrial base are key conditions for sustainable convergence with Europe. Exploiting investment opportunities, strengthening R&D and digital transformation can act as levers for a new period of strong productivity and economic resilience.
