Demographic crisis threatens Greece’s economic future
Greece is facing a severe demographic crisis that could cause significant damage to its economic growth, according to recent studies by the Foundation for Economic & Industrial Research (IOBE) and Eurostat.
The population is projected to decline from approximately 10.4 million today to 9.5 million by 2050, and fall below nine million by 2100 if birth rates do not increase. Alongside this, an aging population will lead to seniors outnumbering active workers, with the ratio rising from 0.35 in 2020 to over 0.60 after 2050.
This demographic shift will dramatically reduce the labor force, shrinking Greece’s GDP by an estimated 31% by 2100 — a loss valued at €58 billion in today’s terms. The decline will also result in nearly 2.1 million fewer jobs, with small and medium-sized enterprises particularly affected by labor shortages and decreased domestic demand.
A separate Bank of Greece study highlights the broader impact, linking a 10% rise in the population over 60 to a 5.5% drop in GDP per capita.
The findings underscore the urgent need for policies addressing population decline to safeguard Greece’s economic future.
tovima
