Greece records 2% Q1 growth as investment rises and income inequality persists

At a conference on economic reforms, Finance Minister Kyriakos Pierrakakis said Greece’s 2% growth in the first quarter was driven by higher investment, stronger exports and lower taxes. He noted that the European Commission has removed Greece from the list of countries with macro‑economic imbalances and granted greater flexibility for public spending on energy, focusing on green investments rather than direct household support.

A study released by the Institute for Labour Market and Employment (IOBE) identified five main drivers of Greece’s enduring income inequality: a high share of self‑employment (about 24% of workers, well above the EU average), a large informal‑economy sector, low labour‑force participation, low overall employment rates and weak union density. The report urges stronger labour‑inspection bodies, improved unemployment insurance and active employment policies to curb disparity.

Both pieces underscore the balancing act for Greek policymakers between sustaining growth through investment and addressing structural labour‑market challenges that fuel wage gaps.