Establishing strong growth conditions requires a steady increase in productivity (GDP per employee). However, the recovery of the economy and the decrease in unemployment do not automatically lead to an increase in productivity, as we see in the case of Greece.

Even in 2017, when the economy recorded a positive GDP growth of + 1.4%, productivity continued to decline by -0.8%, as is consistently the case since 2008. Responsible for this development is extensive disinvestment. But an economy with low and declining productivity cannot be internationally competitive. Indeed, between 2013 and 2017, when unemployment declined by about 7 percentage points and the number of employees increased by + 4.3%, the change in GDP per employee was limited to -2.7%.

This suggests that the country’s productive mechanism responded to the increase in demand (mainly due to exports of goods – transportation and services – tourism), to existing capital equipment, as investments generally declined.

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