IOBE: Industrial activity proves crucial for economic expansion

A decisive contribution to sustaining growth momentum came from exports, which increased by 2.4% year-on-year. Goods exports rose by 2.8%, while services exports recorded an even stronger increase of 3.1%, underscoring the importance of outward orientation for the Greek economy.

At the same time, the labour market presents mixed signals. The unemployment rate stood at 9.6% in April, up from 8.7% in the same period last year, while the number of unemployed increased by 11%. Despite this development, economic sentiment improved in May, with the relevant indicator rising to 107.5 points from 105.8 in the previous month, reflecting greater optimism among both businesses and consumers.

Industry: A key driver of growth

The industrial sector shows a particularly positive picture. Business expectations in industry strengthened significantly in May, with the relevant index reaching 113.9 points, up from 109.2 in April and 110.8 a year earlier.

At the same time, the industrial production index increased by 2.1% in April on an annual basis, compared with a rise of just 0.9% in the EU27. Manufacturing also recorded a positive performance, posting a 1.0% increase.

Industrial exports rose by 5.5% in March; however, higher import growth led to a widening of the trade deficit to €3.4 billion, from €3.2 billion a year earlier.

The sector also made a significant contribution to employment. Industrial employment reached 440,000 people in the first quarter of 2026, marking a 5.2% increase and the highest level since 2011. Total employment in the economy increased by 1.3%.

However, businesses are faced with rising labour costs, as the relevant index in manufacturing increased by 7.0% in the first quarter, broadly in line with the overall economy (+6.8%).

Greece among the leading performers in the Eurozone

According to 2025 data, domestic industrial production increased by 2.2%, compared with 1.5% in the Eurozone. Even more striking is the cumulative performance over the 2020–2025 period, during which Greek industrial production grew by 24.3%, versus just 7.5% in the Eurozone.

Greece now ranks 7th among Eurozone countries in terms of industrial production growth, in a period during which major economies such as Germany and Italy continue to face persistent pressures.

By sector, the strongest performances were recorded in mining and quarrying (+8.0%), basic metals (+4.9%), food production (+3.8%), and pharmaceuticals (+2.5%), confirming the broadening of the country’s productive base.

Overall, the data indicate that industry is emerging as one of the key pillars of Greek growth, supporting exports, employment, and competitiveness in an environment of heightened global uncertainty.