GDP per capita is recovering from a deep and extended recession, but remains around half of that of the upper half of OECD countries. The gap in labour productivity is substantial. The employment rate is improving and a larger share of new jobs are full-time, but it remains low especially among the youth.
High poverty rates have declined slightly in recent years but income inequality remains above the OECD average. Greenhouse gas emissions per capita are below the OECD average and they have decreased since the crisis. Exposure to air pollution and poor waste management practices harm well-being.
Progress has been significant over the past two years across many reform priorities, notably in expanding and improving the effectiveness of the social protection system, strengthening revenue collection and public financial management, and easing product market regulations. A National Growth Strategy frames ongoing reforms to improve judicial processes, education quality, the public administration, management of state assets and reducing the regulatory burden.
Continuing to reduce regulatory burdens and improve administrative processes would address major impediments to investing and doing business in Greece. Improving the quality of all levels of education and better linking curricula with workplace needs would raise skills. Better support for poor households, while ensuring that new requirements that beneficiaries engage in effective active labour market programmes are implemented, would relieve Greece’s high poverty rates and avoid poverty traps.
