“Greece has completely changed,” Giannis Stournaras stressed at the 11th Delphi Economic Forum.
The governor of Bank of Greece participated with Philippe Rogge, Worldwide Public Sector & Sovereignty Leader in a discussion, during which the focus was on the algorithmic era as a catalyst for economic and social growth in Greece and the EU.
Yannis Stournaras placed particular emphasis on the determining role of productivity, investment, reforms and education for the long-term growth of the Greek economy. He stressed that “it is productivity growth that at the end of the day makes an economy more resilient and increases the well-being of its citizens”, noting that it is a key prerequisite for sustainable growth.
He said there are two key factors that determine productivity: productive investment and reforms that boost an economy’s potential growth rate.
Referring to the investment in Greece, he noted that despite significant progress in recent years, there is still an investment gap compared to the European average. “In 2019, investment was at 11% of GDP. Today it is at 18% of GDP, but it remains about four percentage points below the European average, which is 22%,” he said.
The Bank of Greece governor particularly focused on structural weaknesses that continue to affect the country’s competitiveness. He said major problems remain in infrastructure, delays in the administration of justice and the mismatch between supply and demand in the labour market.
At the same time, he made a special reference to the demographic problem, describing it as another critical challenge for the Greek economy.
He paid particular attention to education, which he described as a decisive factor for the adaptation of society to the new era of artificial intelligence. “Education can solve many of these problems. It is extremely important that artificial intelligence does not remain a cutting-edge technology, but that it is diffused in society and businesses,” he said.
Greek economy’s positive performance
Mr. Stournaras also referred to the positive performance of the Greek economy in recent years, noting that the country has made significant progress since the crisis period.
He said the Greek economy is currently growing at a rate almost twice the eurozone average, while public debt as a percentage of GDP is falling rapidly.
“Greece has completely changed,” he noted, stressing that exports have increased significantly, not only in tourism and shipping but also in industry, pharmaceuticals, cement and cables.
Closing his remarks, the governor of the Bank of Greece warned that the development of artificial intelligence should be complementary to work and not at the expense of social cohesion, stressing the need for quality education. “If artificial intelligence substitutes labour, then only capital will benefit. But if it acts as a complement to work, then it can open up a new era for humanity,” he said.
For his part, Philippe Rogge stressed that the next critical priority is skilling, i.e. the development of digital skills to ensure equal access to new technologies. “The next step is skills development. This leads to equalisation of opportunities and equal access,” he noted.
He also placed particular emphasis on the role of the public sector, stressing that it can act as an accelerator for the whole economy. He said that when the state is the first to adopt new technologies, it improves services to citizens, reduces bureaucracy and boosts the competitiveness of businesses. “If the public sector leads, then the whole economy will benefit,” he said.
Closing his remarks, the head of Microsoft’s Worldwide Public Sector appeared optimistic about Greece’s digital transformation. He said the country still has significant room for improvement, but it already excels in one critical area: the adoption of technology by the public sector. “This is the key for Greece to unlock the full potential of these technologies,” he concluded.
The discussion was moderated by journalist Pericles Dimitrolopoulos, editorial director of the newspaper To Vima.
