Income: The Long Road to Convergence with the Average European

Despite signs of growth, Greeks feel economically insecure. Incomes are rising, but the gap with the average European remains large.

According to Eurostat, in 2024 the purchasing power of Greeks was 30% below the European average, ranking Greece second to last in the EU, above Bulgaria.

Economic analysts point to a chronic imbalance between productivity growth and labor compensation. The Greek economy has lower productivity compared to the European average.

The recession of the previous decade led to a decrease in incomes. High indirect taxation and price increases in basic goods exacerbate the situation.

Experts estimate that convergence with the European average requires more than 10 years, perhaps even 15, with high growth rates above 2% and improved productivity.

Forecasts for the 2026-2027 biennium converge on positive growth rates, supported by investments, increased private consumption and reduced public debt.

However, the Greek economy relies mainly on European funding and domestic demand, rather than a new production model.