GREEK NATIONAL PRODUCTIVITY BOARD - Annual Report 2023 - Challenges and Policies

Nevertheless, the gaps between the labour productivity of the Greek economy and the average labour productivity in the EA19 and the EU27 are considerable and persistent, with no signs of convergence. [...] The total factor productivity (TFP) growth of the Greek economy has reached the corresponding growth of the EA19 and the EU27, since between the year before the pandemic (2019) and the current year (2023), it increased by about three times more than the EA19 and the EU27 average. [...] Crucial for the materialisation of the expected growth dynamics of the Greek economy are, on the one hand, the increase in labour utilisation, a key factor considering the medium- to long- term adverse effects of population aging, and, on the other hand, the significant increase in fixed capital investment, particularly, in the business and high-technology sector of the economy. [...] The second part (Section 3) reports the main developments in public finance and the current accounts of the Greek economy, and recent improvements in cost/price competitiveness indices and the regional competitiveness and relevant gaps of the region of Attiki with the rest of the Greek regions. [...] To estimate the multiplier effects of RRP, we set the elements of the vector of autonomous demand equal to the weighted distribution of the RRP budget of each challenge of impacts to the 45 industries of the Greek economy.