The debate over transforming Greece’s production model often feels like an exercise on paper—broadly agreed upon in principle, yet elusive in practice. While there is consensus that growth can no longer rely solely on services and real estate development, the shift toward a globally competitive, export-oriented economy remains Greece’s most pressing challenge.
A Counterintuitive Export Story
In an interview with newsit.gr, Kostas Theos—General Director of Elliniki Paragogi (Greek Production), the industry advisory council for development—cuts through common assumptions with hard data. Though some progress has been made—what he describes as “significant and visible” steps—the gap between Greece and the EU average remains wide.
One of the most striking points he raises concerns exports. Contrary to the widely held belief that tourism alone drove recent economic improvement, Greek goods exports nearly tripled between 2009 and 2024—growing more than tourism revenue itself. “This fact is largely unknown to the public,” Theos notes.
Yet the broader picture is sobering. Greece still ranks among the lowest in the European Union for goods exports—less than half those of similarly sized countries like Portugal and Austria.
The Structural Weakness
At the heart of Greece’s economic challenge lies a deep-rooted structural issue: industry’s minimal contribution to GDP. According to Theos, Greece ranks fourth from the bottom in the EU—outperforming only Luxembourg, Cyprus, and Malta. This weak industrial base directly correlates with low labor productivity.
“Industry is uniquely capable of multiplying labor productivity—and enabling higher incomes,” he emphasizes.
Better Pay, But Lower Appeal
Despite these challenges, domestic industry proves resilient and attractive to workers. Jobs in manufacturing pay roughly 35% more than the national average across other sectors—and offer greater job stability and career progression.
Yet industrial employment remains low on the preference list for job seekers—a reflection not just of economics, but of culture. “Many applicants would rather work as delivery drivers than take stable, upwardly mobile industrial jobs,” Theos observes with concern. He stresses that Greece’s education system must bridge this gap by aligning more closely with the needs of manufacturing and advanced production.
For sustainable growth, Theos argues it is essential to remove disincentives that hold Greek industry back—particularly high energy costs and an unfavourable tax framework—so Greece can finally catch up with its European peers.