## External Sector Dynamics and Firms’ Competitiveness in Greece

_Selected Issues Papers, July 27, 2026_

## Source details

**Canonical URL:** [External Sector Dynamics and Firms’ Competitiveness in Greece](https://www.imf.org/en/publications/selected-issues-papers/issues/2026/07/27/external-sector-dynamics-and-firms-competitiveness-in-greece-578161)

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## Bibliographic details
- Authors: Tomohide Mineyama
- Published: July 27, 2026
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229056014.018

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### Overview
- 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.

### Key findings and sector dynamics
- 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.

### Policy recommendations
- 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.

### Publication and metadata
- 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).*

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_Source: https://www.imf.org/en/publications/selected-issues-papers/issues/2026/07/27/external-sector-dynamics-and-firms-competitiveness-in-greece-578161_