Greece Urgently Pushes €31.1 Billion Economy Overhaul as Tourism Reaches 13% of GDP
Updated
Updated · Greek Reporter · Jun 7
Greece Urgently Pushes €31.1 Billion Economy Overhaul as Tourism Reaches 13% of GDP
2 articles · Updated · Greek Reporter · Jun 7
Summary
Greece needs an urgent shift toward a more complex, manufacturing-linked economy, with experts warning the current model is too dependent on services and imports despite strong tourism receipts.
Tourism accounted for 13% of GDP in 2025, while services made up 68.6% of GDP from 2013 to 2023; industry contributed 15.2% and agriculture 3.3%, underscoring the economy’s narrow base.
Only 4% of Greeks work in sectors tied to the complex economy, generating about 11% of GDP value added, as fragmented small businesses keep labor productivity and wages low.
The proposed fix centers on Industry 4.0—IoT, automation, data sharing, digital platforms and circular-economy models—to connect Greek firms to international and regional production networks.
That transition is meant to be backed by the 2022-2026 Greece 2.0 recovery plan, which allocates €31.1 billion in EU-linked funding across green and digital transition, skills, and private investment.
Greece is betting its future on AI and automation, but can its workforce learn the required skills in time?
As tech giants invest billions, can Greece fix its deep-rooted 'trust gap' to secure its economic future?
After the RRF: How Greece Plans to Sustain Growth, Tackle Tourism Pressures, and Build Economic Resilience
Overview
As Greece enters the post-RRF era from 2026, the country faces a pivotal moment to maintain the economic progress and reforms achieved with EU support. Leading up to this period, Greece strengthened its investment climate and fiscal health, with the Hellenic Development Bank approving €2.9 billion in loans to SMEs—90% of which went to smaller companies—and the 'My Home II' program supporting over 12,000 families. These efforts, combined with robust fiscal discipline and innovative investment, set the stage for Greece to build on its momentum, address ongoing challenges, and pursue sustainable growth beyond direct EU funding.