In 2023, the business sector saw a notable increase of 3.6% in sales, in real terms. However, the year unfolded with two distinct periods: the first half witnessed particularly robust annual growth rates of +6.5%, while the second half experienced a significant slowdown to +1.3%. This deceleration aligns with the gradual decline observed in investment and employment trends. Despite this, Greek enterprises managed to expand their share within the European business sector, rising from 1.09% at the end of 2022 to 1.12%. This growth stands out as many EU countries encountered more pronounced contractionary pressures during the aforementioned period.
Our outlook for the prospects of 2024 remains optimistic, with the potential for a 4% growth in real terms. Key supporting factors include the anticipated gradual strengthening of European demand and the availability of EU funds, such as the RRF, which finance infrastructure and digital upgrade projects. Encouragingly, early indications for the new year are positive, with January's sales performance for large enterprises (+3.6%) confirming a stronger recovery trend compared to the weak second half of 2023. Despite the potential for growth, 2024 presents significant challenges due to the persistently high uncertainty in the international environment. Geopolitical pressures continue to create focal points of economic tension, exemplified by events like the 40% reduction in passages through the Suez Canal in the first quarter of the year. Additionally, businesses are facing the task of managing phenomena associated with climate change, which could have repercussions on the local and national economy.
Looking beyond cyclical fluctuations in the mid-term horizon, Greek entrepreneurship is witnessing a significant trend: the continuous ascent of the "new economy" segment, encompassing activities such as IT, high-tech industry, and R&D. This segment has notably expanded its share of business sales to 10.9% in 2023, a substantial increase from 7.6% in 2019. Remarkably, the "new economy" segment outpaced the rest of the business sector by threefold in terms of sales growth in 2023 (11.2% vs. 2.8%). Maintaining this growth trajectory, its sales share over the business sector could increase by 20% by 2030. The expansion of the "new economy" is expected to have a positive side effect across all business sectors. Therefore, the success of this new entrepreneurial model represents the ultimate challenge for Greece, with implications for the broader economic landscape.
See the infographic:
