Industry provides 10.4% of GDP
Parliamentary Budget Office highlights the growing contribution of manufacturing to economy
In its quarterly report on Tuesday, the Parliamentary Budget Office (PBO) highlighted the growing contribution of Greek manufacturing to the country’s gross domestic product, noting that it reached 10.4% in the second quarter, much higher than the 8.6% rate in the second quarter of 2009.
“Manufacturing labor productivity has returned to and even exceeded its level before the triple crisis (financial, debt and banking) that hit our country in 2010,” the report notes. “This is due to various causes and factors, such as the strong export nature of the sector, the absorption of significant investments from the Recovery Fund, spending on research and development combined with fewer working hours.”
Also, the report states that due to increased productivity, the average wage in the manufacturing sector significantly exceeds the average monthly salary for the economy as a whole, reaching 1,700 euros compared to around €1,250.
“In conclusion,” the report emphasizes, “strengthening the manufacturing sector is the safe way for the Greek economy to acquire a third pole of development, beyond tourism and shipping. Therefore the degree of diversification of the country’s productive branch is increasing, which is compatible with long-term economic development and growth.”
In the PBO report, presented on Tuesday by coordinator Ioannis Tsoukalas, the office predicts a growth rate of 2.3% for the Greek economy in 2024, slightly above the 2.2% forecast in the government’s draft budget, which was adjusted to the European Commission spring forecasts. However, the forecast is below the 2.5% the PBO estimated in June. The report states that the range of its forecasts is from 2.1 to 2.7%.
Commenting on the Medium-Term Fiscal Plan forecast for a growth rate below 2% after 2026 (1.5% in 2027 and 1.3% in 2028), Tsoukalas argued that “the scenario is restrained because it does not include the maturation of investments from the Recovery Fund and the increase in productivity.”
