Bell for the Greek economy by the European Stability Mechanism (ESM): Without substantial reinforcement of productivity, the Greece It is in danger of being stuck in anemic growth rates, despite progress at fiscal level.
According to ESM report findings, productivity increased is a decisive factor in the eurozone’s economic viability – and much more for countries such as Greece.
As ESM notes, the Greek economy has recorded significant improvements in its fiscal stability and recovery of investment confidence, but long -term growth prospects remain fragile if there is no systematic progress in boosting productivity.
Productivity in Greece remains below the European average, despite improvements in recent years. This, according to the ESM, is due to chronic structural weaknesses, such as over -the -work market and products, the low performance of public administration, as well as the inadequate connection of education to market needs.
The report calls on the Greek authorities to accelerate productivity reforms, such as public digitization, supporting business innovation, improving infrastructure and attracting investment in high value -added sectors.
It is noteworthy that, according to the data, even the resources of the recovery fund can only give a maximum result if they are combined with targeted policies for increasing productivity and boosting human capital.
ESM points out that if Greece does not change speed in boosting productivity, it is in danger of being trapped in a long -term pattern of low growth and limited investment. In contrast, a steady course of improving productivity can ensure not only higher GDP but also sustainable conditions for increasing income and employment.