A gradual convergence of investment in construction (of housing and infrastructure) with the average in other European Union countries, up from today’s exceptionally low level, would bolster Greece’s gross domestic product and lead to the creation of thousands of jobs, a study by the Foundation for Economic and Industrial Research (IOBE) indicates.
Such a convergence would add an extra 29.3 billion euros to the country’s GDP in the next five years, plus 11.8 billion euros of additional investment per year in related economic sectors up to 2030.
In total, the GDP growth rate would increase by an estimated 1.8 percentage points. Crucially, the rise in investment up to the EU-wide average would create an extra 230,000 jobs in the next 10 years, offsetting the labor market losses of previous years.
IOBE underscores that construction will contribute further toward the country’s growth if already scheduled projects are accelerated, counterincentives are lifted, and incentives are granted for investing in housing and other buildings. Public-private partnerships and the setting of priorities in long-term infrastructure plans would also be crucial to this growth.