Greece climbed 10 spots this year in the World Economic Forum’s competitiveness chart, which was published on Wednesday. However, the country remains constrained by corruption in public administration, a lack of transparency and the inefficiency of the state, according to the Global Competitiveness Report.
The country rose from 91st to 81st spot among 144 countries thanks to the fact that labor relations have become more flexible as well as to the gradual opening up of certain markets, although it remains below par in the operation of basic state structures.
Interestingly, the report notes that the Greeks are technologically advanced, but Greek companies are not, which confirms that despite six years of recession the country’s growth model has yet to evolve from one based on consumption to one of production.
The banking system’s reluctance to issue loans and the existence of bureaucratic obstacles to foreign direct investments are preventing Greece from becoming more competitive, according to the WEF.
The reform rally observed over the last few years led the organization to focus on Greece. It commented that it is one of the few economies that are adopting and applying the reforms that are necessary to attain improved competitiveness. Among the factors seen to have bolstered competitiveness in Greece are the smooth operation of commodity markets, the intensity of domestic competition and the flexible labor market.