By J. Kanoupakis
[email protected]
Greece’s industrial decline over the past three decades is neatly summed up by the fact that domestic production – excluding exports – covers only 26 percent of domestic demand, with the remaining 74 percent satisfied by imports.
The figure is derived from a joint study recently unveiled by center for export research and studies, which operates under the auspices of the national exporters’ association, and the Athens Chamber of Commerce and Industry’s relevant research center.
In terms of percentages, the estimate is that Greek industrial production eased 19.5 percent over the 1995-2015 period.
One of the primary reasons for the country’s deindustrialization, according to the study’s authors, is a cost inconsistency between labor and production, a contributing factor to high unemployment in the country.
Specifically, over the 1995-2020 period, the average yearly cost of labor increased by 117 percent, whereas productivity by only 9 percent, according to the study, which mostly focused on light manufacturing and processing.
The shrinking sector resulted in a significant reduction in investment, the number of employed and in the gross value of production.
As a whole, Greece’s industrial sector posted its best performances in the 1970s – before entry into the then EEC – when its share of GDP was roughly 20 percent and with a workforce of 400,000 – or 12 percent of the labor force.
Currently, the percentage that the manufacturing/light industry/processing sector accounts for in the national GDP is 5.4 percent annually, employing 168,000 people, a mere 4.5 of the total workforce.
