Greek industry sits at the bottom of EU rankings for energy costs, productivity, and investment intensity. The Federation of Greek Industries (SBE) presented the interim results of a structural competitiveness study on Thursday.
The comprehensive report compared Greece against 23 other European Union member states. The data identifies soaring electricity prices and a high reliance on energy imports as the largest obstacles for domestic manufacturers.
Conversely, low labor costs remain the country’s sole primary competitive advantage. This single factor places Greece first in the European ranking for labor cost competitiveness.
Operating within Europe’s worst industrial energy environment
The SBE report ranks Greece last among 24 nations for its overall energy environment and network reliability. The country scored just 4.31 points against a significantly higher European average of 6.26 points. Specifically, Greece ranks 23rd for retail electricity costs targeted at industrial users.
An overwhelming 72 percent of local business owners label these high energy prices as a major barrier to expansion. Furthermore, the country ranks 23rd for energy supply diversification. This leaves industrial factories vulnerable to international price spikes and supply disruptions.
Lagging behind in productivity and bureaucratic efficiency
The second critical weakness highlighted by the SBE involves exceptionally low industrial productivity and efficiency. Greece scored a mere 2.84 points in this category compared to a European average of 4.33 points.
The study places the nation last in total factor productivity and fixed capital investment intensity. Additionally, Greece ranks 23rd for capital stock per employee.
Heavy state bureaucracy also weakens the institutional operating framework for businesses. Greece ranks 23rd for the time required to resolve basic civil and commercial disputes. Furthermore, the nation ranks last among 17 surveyed countries for ease of access to corporate financing.
Scoring high marks for innovation and quality
Despite these severe structural hurdles, the study highlights two remarkably positive trends for Greek manufacturers.
Greece ranks second among 22 countries for the percentage of businesses introducing new or significantly improved products. This high rank demonstrates impressive resilience and innovative capability among local corporate leaders. The nation also secured the fifth spot overall for general price competitiveness and product quality index. To maintain this momentum, the SBE demands competitive energy caps, simplified licensing laws, and rapid technological upgrades.
