Greece is gradually closing the investment gap that has long set it apart from the rest of Europe, Bank of Greece Governor Yannis Stournaras said on Monday during a conference on competitiveness.

Investment in Greece is expected to reach around 16% of GDP this year, up from 11% in 2019, while in the European Union the figure currently stands at approximately 22%, the central banker noted.

However, Stournaras emphasized that boosting innovation is essential, as improving productivity is the only way not just to raise but even to maintain, the standard of living in Greek society.

According to the latest European Commission data, average productivity per working hour in Greece is just 56.2% of the EU average.

This shortfall is largely a legacy of the financial crisis, during which Greece saw a steep decline in investment and lost a significant portion of its working-age population.

Even before the crisis, Greek productivity lagged behind the European average, Stournaras said, though in recent years the gap has narrowed.

He noted that Greek exports as a share of GDP have doubled since the crisis, supported by structural shifts, while investment increase in Greece has outpaced that of the EU, with a greater contribution to growth.

On the potential acquisition of the Athens Stock Exchange by Euronext, Stournaras said the deal is expected to deepen the market and improve access to capital for Greek businesses – particularly startups – through increased exposure to international investors.

Source: Ekathimerini.com