The competitiveness of the Greek economy is almost stable

Greece’s position in terms of competitiveness fell by just one position compared to last year, according to data from Swiss-based International Institute for Management Development (IMD) published today. The country is now in 47th place in the relevant ranking, falling from 46th place last year, among 63 countries.

In any case, the country for another year is in positions of low competitiveness, but having improved its position from 2018 until today by 10 positions, according to the Federation of Industries of Greece (SBE).

Despite the effects of the pandemic, Greece is falling marginally by only one place in the international competitiveness ranking. At the same time, despite the country’s marginal decline in the world rankings, the country’s overall score has improved.

Greece is still ranked low in the Global Competitiveness Yearbook. Greece’s low competitiveness stems from the decline in three of the four categories of indicators of the IMD World Competitiveness Yearbook. In particular, the country shows a decline in the category of “Government Efficiency” indicators by three positions, in the category of “Business Efficiency” indicators by two positions and in the category of “Infrastructure” also by two positions.

Improved economic efficiency due to international trade

Greece has improved its ranking by one position in the category of “Economic Efficiency” indicators, mainly because of the improvement of performance in the individual indicators related to “International Trade”. The rise of Greece by 22 places (from 39th in 2021, to 17th in 2022) in the subcategory of “International Trade” indicators is mainly due to the strong differentiation in terms of markets and in terms of products, as well as the significant increase recorded in the product exports. This highlights the potential that the practical support of manufacturing and industry for the production of internationally marketable products of high added value can offer to the growth of the Greek economy.

According to SBE, a basic condition for the further improvement of Greece’s position in the international competitiveness ranking, is the continuation of the reforms in the economy and the return of manufacturing as a focus of state priorities.

In this context, the Federation proposes that the following five challenges be addressed immediately:

1. The introduction of special programs for the adaptation of the domestic industrial base to successfully face the challenges of the 4th industrial revolution.
2. The technical reskilling of industry executives and professionals.
3. The adaptation of local industrial ecosystems to the principles of energy efficiency and circular economy.
4. The introduction of educational programs that will support the adaptation of the Greek economy to the digital and green transition, and,
5. The attraction of Foreign Direct Investments, utilizing as examples emblematic foreign investments implemented to date. “