Low Productivity and the Investment Gap: “Thorns” for the Greek Economy

Low productivity and a ample concern spread stay large “thorns” for the Greek economy, according to a study published today by the OECD. At the aforesaid time, debased innovation and the slow adoption of technologies by businesses proceed to bounds Greece’s maturation potential.

According to the report, the Greek economy has held up well during caller crises and has outpaced the eurozone successful maturation rates successful caller years. The per capita GDP spread comparative to the much precocious OECD economies has begun to narrow, arsenic accrued superior intensity, occupation creation, and structural reforms person supported a steady betterment from the prolonged crisis. However, advancement has been constrained by weak productivity gains, while the concern gap, though narrowing, remains large, and galore businesses, particularly smaller ones, proceed to struggle with adopting integer technologies and innovating.

The OECD study notes that successful bid to raise incomes, competitiveness indispensable beryllium ensured and ample spending needs indispensable beryllium met, while astatine the aforesaid clip further indebtedness simplification is needed, productivity indispensable beryllium boosted, and the improved conditions successful the labour marketplace indispensable beryllium maintained. It besides notes that if small and medium-sized enterprises had amended entree to financing, they would innovate much and put successful much precocious technologies.

Furthermore, the OECD highlights skills shortages successful the Greek labour market, recommends improvements successful acquisition and accrued information of women, and notes that removing remaining regulatory burdens would strengthen contention and concern dynamism.

Non-Performing Loans

The banking assemblage is the main source of outer financing. Although the wellness of the banking assemblage has improved significantly, the decade-long economical situation near its people connected the fiscal system. The non-performing indebtedness (NPL) ratio connected banks’ equilibrium sheets remains comparatively high, contempt the important simplification achieved done the “Hercules” programmes. The servicers, to whom the risks person been transferred, look obstacles successful resolving NPLs owed to the cumbersome liquidation of collateral and delays successful ineligible proceedings, while debtors of unresolved NPLs stay efficaciously excluded from the banking system. A judicial betterment successful 2024 aims to speed up insolvency cases.

Digital Technologies

The persistent productivity spread is accompanied by the slow diffusion of integer technologies. The use of integer tools, from creating a firm ιστότοπος to utilizing unreality computing and artificial intelligence, lags down different OECD countries, peculiarly among smaller businesses. The accelerated but still constricted rollout of high-speed broadband infrastructure, the deficiency of managerial capabilities, and constricted entree to innovative forms of financing are the main obstacles to reaping the benefits of digitisation.

Skills Shortage

The skills shortage is important and growing, hindering some concern improvement and innovation. Although unemployment is connected a downward trend, it remains precocious compared to different OECD countries. Unemployment and skills shortages coexist, arsenic the skills mismatch is large. Adult skills lag down those successful different OECD countries, and information successful training is low. Targeted training for the unemployed done the Public Employment Service (DYPA) has improved, but constricted backing for progressive labour marketplace policies hampers further progress.

Women’s Unemployment

The employment spread betwixt men and women remains large, and the pistillate labour unit information rate, while improving, is still among the lowest successful the OECD. Achieving a amended work-life equilibrium would facilitate women’s entree to the labour market, thereby expanding the skills supply. However, childcare capableness is low, arsenic spending is directed towards commencement allowances alternatively than in-kind support.

Heavy Regulatory Burden

Low concern dynamism is accompanied by the cognition that the regulatory load is high. Business introduction and exit rates are low, arsenic the system is dominated by small firms that often grounds debased productivity and neglect to grow. Although the regulatory model has go much broadly conducive to competition, there is still country for improvement, peculiarly regarding the prime of regularisation and nonrecreational services that supply important intermediary solutions for businesses.