Greece

Greece ranks less well in Economic Competitiveness (43rd) than in Comparative Liveability (32nd). It ranks 34th overall. Good education and health-adjusted longevity are important to Greece’s success.

Despite a large public sector and a negative trade balance, Greece saw GDP levels rise by approximately 4% per year between 2003-2007. The country joined the European economic and monetary system in early 2001. It has consequently become a net recipient of aid, receiving subsidies worth 3.3% of GDP per year, although this does not translate into a high dependence score, because the Index weight on aid is very small at Greece’s level of income.

Foreign trade and investment only account for roughly a quarter of GDP, reducing the country’s openness score. Levels of investment in research and development and in worker education are among the lowest in the EU-27, which produces mediocre scores for innovation. The number of patents filed is notably low.

Greece also trails the rest of Europe on other key economic indicators such as public debt, current account deficit, inflation and unemployment. However, there are a number of signs of hope that are likely to have an important influence on future growth. The quality of governance is high, in terms of both regulatory quality and efficiency, although it still trails the leading countries in Europe. Levels of capital investment are also well above the global mean and Greeks show considerable entrepreneurial spirit, with the region’s highest rates of business ownership.

Greece’s ranking in the Comparative Liveability Index is over ten positions higher than its rank in the Economic Competitiveness Index. This strong Comparative Liveability performance is accounted for by Greece’s substantial protection of political rights and civil liberties, as well as high average incomes in line with other Western European countries.

The health-adjusted life expectancy for Greece is extremely good at 71 years, but the troubled pension system is in need of dramatic reform. Scores for community life are poor by comparison with the rest of the region, with Greeks among the least likely to volunteer or give to charity. Only 7%^g of respondents in to the Gallup World Poll had volunteered in the last month. Other elements that are detrimental to Comparative Liveability include poor environmental protections and limited religious freedom.

Greece ranks first amongst the EU-27 on inward migration. Immigrants make up nearly one-fifth of the work force, although a large number occupy unskilled jobs. The sense of opportunity that migrant workers evidently perceive is not matched by Greek citizens, who are among the most cynical in Europe when it comes to thinking that anyone can get ahead through hard work. Meanwhile, with only 66%^g reporting satisfaction with freedom of choice, Greece competes with Turkey and Hungary for the unenviable title of Europe’s worst-scoring country on this indicator.