Greece GDP: Which sectors determined growth in 2022

The contribution of important sectors of the Greek economy to the GDP in 2022 was decisive, although each with a different intensity.

This is highlighted in Alpha Bank’s weekly economic report, according to which the past year was particularly positive, both in terms of strengthening economic activity and creating new jobs. Gross domestic product increased by 5.9% and employment grew by 5.4%.

Tourism – trade – transport

The broad sector of tourism, wholesale and retail trade and transport, which constitutes ¼ of the total gross value added (GVA), contributed more than 50% to this increase in 2022.

At the same time, those employed in the activities of this large and wide sector increased by 68.1 thousand, which corresponds to 32% of the total increase in employment in 2022 (212.6 thousand). Although 77% of new jobs in the sector came from tourism, it is noteworthy that, according to a recent study by the labor institute INSETE, the shortage of human resources in Greek hotels at the peak of the 2022 summer season amounted to 23% of their total needs.

The other sectors of the tertiary sector also had a significant positive contribution to the increase in GDP, equal to 1.7 percentage point (p.p.m.), as the product of this category increased by a total of 3.1%. In terms of employment, the same category, i.e. services, excluding accommodation and catering services, trade and transport, contributed 38% of new jobs (81.2 thousand). In more detail, employment increased by 32 thousand in education, 19.9 thousand in professional, scientific, technical, administrative and support activities and 16.4 thousand in the arts, entertainment, entertainment and other services category.

Construction

In addition, construction GPA increased by 26%, the highest rate for this category since 2006. Their contribution to the overall increase in GPA, however, was 0.5 p.p.m., as they constitute only 2.4% of this. At the same time, employment in the construction sector increased last year, by 6.8 thousand.

Industry – agriculture

Finally, although industry and the primary sector had a marginally positive contribution to the change in GNP in 2022 (0.3 p.p. and 0.1 p.p. respectively), employment in these two categories increased significantly. Specifically, the industry registered the second largest increase after accommodation and catering in 2022, creating 36.5 thousand additional jobs, with 62.6% of them in manufacturing, while in the agriculture-forestry-fishing sector the employed increased by 15.4 thousand

The above picture is – in general – compatible with the evolution of turnover by branch, it is pointed out. Overall, the turnover of Greek companies, in nominal prices, increased in 2022 by 34.6%, with the majority of individual sectors having recorded an increase. The highest year-on-year growth was recorded in the turnover of accommodation and food services activities, which stood at 51.6%, against an also high growth of 62% in 2021. It is worth noting that the turnover of the sector fully recovered after the decline of 48.9% in 2020, exceeding the corresponding size of 2019 by 25.5%. It was followed by the arts-entertainment-entertainment sector whose turnover increased by 43.1% in 2022 and manufacturing by 40%.

The significant increase recorded in turnover in nominal terms during the past year is attributed, to a significant extent, to the rise in the general price level. However, after removing the effect of inflation, the turnover change of Greek companies in 2022 remains, in most sectors, positive and high. The growth rates, however, were significantly softer compared to the corresponding rates of change in nominal quantities, particularly in sectors where inflationary pressures were stronger, such as the primary sector, but also manufacturing and transport, which include energy products.