ECONOMY

Covid-19 crisis should herald change in Greece’s productivity model, Delphi forum told

covid-19-crisis-should-herald-change-in-greece-s-productivity-model-delphi-forum-told

The coronavirus crisis should herald a change in Greece’s production model, prompting a shift away from its tourism-dependent economy, the ongoing Delphi Economic Forum was told on Thursday.

“This model comes with risk. It was the easy solution and it has to change,” Evangelos Mytilineos, head of the industrial group of the same name, told a discussion on the challenges of the Greek economy which was moderated by Kathimerini English Edition Editor-in-Chief Tom Ellis.

Mytilineos further pointed to the need for the development of the energy sector.

In the same discussion, former deputy prime minister Evangelos Venizelos also emphasized the need to diversify the country’s economy.

“We need to soften the impact of the crisis but also restructure a productivity model which is suffering from distortions and reduced competitiveness,” he said: “Tourism monoculture is extremely dangerous. It is a fragile product.”

Greece’s vital tourism sector accounts for about 20 percent of economic output. Huge revenue losses are expected this year due to travel restrictions worldwide.

Currently in its fifth edition, the Delphi Forum is taking place in digital form this year due to Covid-19. It concludes on Friday.