External Sector Dynamics and Firms’ Competitiveness in Greece

Selected Issues Papers, July 27, 2026

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Canonical URL: External Sector Dynamics and Firms’ Competitiveness in Greece

Greece’s external sector has undergone significant transformation over the past decades.
Pre-crisis imbalances—including large fiscal deficits, household overinvestment, and elevated labor costs—have largely been corrected.
The current account deficit remains sizable, reflecting persistent challenges such as subdued private saving, low value added in exporting sectors, and high external debt.
Advancing supply-side reforms would help strengthen international competitiveness and raise productivity, supporting higher domestic value-added and saving.
Maintaining prudent fiscal policy remains essential to further reduce external debt.

Pre-crisis drivers of imbalance corrected: large fiscal deficits, household overinvestment, elevated labor costs.
Persistent challenges:
- Subdued private saving.
- Low value added in exporting sectors.
- High external debt.
Policy levers to improve external sector outcomes:
- Supply-side reforms to strengthen international competitiveness and raise productivity.
- Fiscal prudence to reduce external debt over time.

Advance supply-side reforms to:
- Strengthen international competitiveness.
- Raise productivity.
- Support higher domestic value-added and saving.
Maintain prudent fiscal policy to further reduce external debt.

Author: Tomohide Mineyama
Publication date: July 27, 2026
Series: Selected Issues Paper No. 2026/071
Issue: 071
Volume: 2026
Pages: 22
DOI: https://doi.org/10.5089/9798229056014.018
Stock No: SIPEA2026071
ISBN: 9798229056014
ISSN: 2958-7875
Format citation (Chicago): Tomohide Mineyama. "External Sector Dynamics and Firms’ Competitiveness in Greece", Selected Issues Papers 2026, 071 (2026), accessed 9/18/2026, https://doi.org/10.5089/9798229056014.018

Source: IMF Selected Issues Paper — "External Sector Dynamics and Firms’ Competitiveness in Greece" (July 27, 2026).