Amid European efforts to boost homegrown industry, Greece is stepping up its support for businesses with the goal of sharply expanding the manufacturing sector over the next five years. New incentives for industrial parks, digitalization, R&D projects have been rolled out, which, along with a national industrial policy that is in the pipeline, aims to boost the share of manufacturing to 15% of GDP by 2030, up from around 11% now.
Speaking at the Thessaloniki International Fair this month, Prime Minister Kyriakos Mitsotakis pledged to support the growth of advanced, value-added manufacturing in Greece and highlighted its importance to the economy and exports. “Ladies and gentlemen, important steps are coming in 2025 to boost economic productivity,” he said during his annual economic address at the Fair. “With an emphasis on enlarging businesses, mainly in their outward orientation, strengthening manufacturing and shifting to exportable industrial products.”
Over the past five years, external crises, like Covid and growing competition from China, have strained global supply chains and lead to growing calls for a European Union industrial policy. At the same time, Greece has been seeking to diversify its economy and reduce its heavy reliance on service sectors like tourism and shipping.
Though small, and despite the hollowing out of its industrial base, Greece remains a leader in certain key industrial sectors. Notably: pharmaceuticals, metals and mining, food processing, building products, maritime equipment and supplies. Increasingly, the country is also becoming an innovation leader and is developing capacity in select hi-tech products for the energy sector, defense, aerospace and shipping.
“These are all sectors with comparative advantages for our economy and our workforce,” Mr. Mitsotakis said. “We must therefore create the conditions for them to gain new momentum, with the aim of adding €15 billion a year to GDP in five- to ten years’ time and 150,000 additional well-paid jobs for knowledge workers.”
Senior Greek officials add that research, innovation and accelerating the green and digital transition for Greek industry are key prerequisites for the country to become more competitive and increase its exports.