Lex (“Greece’s banks cap a perhaps unlikely but remarkable comeback”, April 2) rightly points out that Greece has become a market darling following strong growth in gross domestic product and a lower 10-year cost of borrowing compared to Italy or the UK.
What is puzzling, however, is Lex’s reference to “falling wages and competitiveness improvements” in Greece. According to the latest report by the Bank of Greece real wages have grown by 2 per cent in 2023 and are expected to grow by 2.7 per cent in 2024.
This is rather reassuring for a country currently recording strong GDP growth.
The Bank of Greece’s report also warns of stagnating or even falling competitiveness. This should not necessarily put the blame on real wage gains but, rather, on stagnating productivity. Something for prospective investors to consider seriously.
Professor Costas Milas
University of Liverpool Management School, Liverpool, UK
