The publication of the 2025 World Competitiveness Yearbook by the International Institute for Management Development (IMD) in Switzerland served as a cold shower for the narrative of the "Greek success story." Despite digitalization efforts and occasional triumphs regarding investment attraction, Greece has slipped to 50th place among 69 economies, losing significant ground compared to previous years. This decline is not just a number; it is a reflection of chronic pathologies that continue to keep the Greek economy tethered to a model unable to keep pace with global competition.
The Four Pillars and the Greek Deficit
The IMD ranking is based on four central pillars: Economic Performance, Government Efficiency, Business Efficiency, and Infrastructure. In Greece's case, the decline was horizontal, with Government Efficiency being the "black sheep" of the report. Despite the introduction of digital tools like Gov.gr, bureaucracy remains an insurmountable obstacle. Legislative complexity, slow judicial processes, and tax instability create an environment of uncertainty for investors.
In the area of Economic Performance, Greece appears to be paying the price for high inflation and energy costs. While tourism continues to provide relief, the lack of a productive base and reliance on imports make the economy vulnerable to external shocks. The report highlights that improvements in macroeconomic figures, such as the deficit, do not necessarily translate into a competitive advantage unless accompanied by structural reforms that facilitate the daily operations of businesses.
The Ghost of Bureaucracy and the Judiciary
Perhaps the most disappointing element of this year's ranking is the confirmation that Greece remains a "champion" in bureaucracy. Digitalization, though necessary, seems in many cases to have simply "digitalized" bureaucracy rather than eliminating it. Businesses continue to face labyrinthine procedures for licensing, while communication with public services remains problematic.
"Competitiveness is not a sprint; it is a marathon of institutional changes. Greece seems to have run out of steam halfway through," industry analysts note.
The slow administration of justice is the second major thorn. Greece ranks among the lowest globally regarding the time required to resolve commercial disputes. This acts as a deterrent for serious Foreign Direct Investment (FDI), as no multinational corporation wishes to get bogged down in legal battles that could last over a decade. Without a radical reform of the judicial system, climbing the competitiveness ladder will remain an elusive dream.
Business Efficiency and Human Capital
In the Business Efficiency pillar, Greece faces the paradox of "Brain Drain" combined with a simultaneous shortage of skilled personnel. While thousands of young scientists have left the country, Greek businesses report an inability to find staff with the necessary skills for the digital transition. The link between education and the labor market remains weak, and private sector investment in research and development (R&D) is still low compared to the European average.
Furthermore, the cost of capital for small and medium-sized enterprises (SMEs) remains prohibitive. Greek banks, despite cleaning up their balance sheets, continue to maintain a particularly conservative stance on lending, leaving a large segment of healthy business activity without the necessary capital for expansion and modernization. This creates a two-tier economy: on one side, a few large groups with access to international capital markets, and on the other, thousands of SMEs struggling for survival.
Conclusions and Outlook
The fall to 50th place in the global rankings must serve as a loud wake-up call for the Greek government and the business world. The country cannot perpetually rely on consumption and tourism. A re-evaluation of priorities is required, with an emphasis on production, innovation, and, above all, institutional strengthening. Reducing taxation and social security contributions, genuine simplification of procedures, and the acceleration of justice are no longer options but prerequisites for survival in a rapidly changing international environment. If Greece fails to reverse this course, it risks being trapped on the periphery of the European economy as a mere provider of low-value-added services.
