Eastern Macedonia and Thrace sees economic progress, but challenges remain
Eastern Macedonia and Thrace has recorded improvements in several economic and social indicators over the past two years, including GDP growth and declining unemployment, but housing affordability, youth unemployment and demographic pressures continue to pose major challenges, Regional Governor Christodoulos Topsidis said.
Speaking during an accountability session of the Eastern Macedonia and Thrace Regional Council on Thursday, 29 October, Topsidis presented the administration's performance in 2024 and 2025, acknowledging that living conditions remain difficult for many residents despite improvements in several areas.
His remarks followed criticism from Stergios Iliopoulos, head of the Independent United Initiative, who highlighted the region's persistent socioeconomic problems using Eurostat data and called for more targeted policies and better allocation of European funding.
GDP GROWTH OUTPACES NATIONAL AND EU AVERAGES
According to Topsidis, Eastern Macedonia and Thrace recorded real GDP growth of 2.9% in 2024, exceeding the national average of 2.1% and the European Union average of 1.1%.
The region ranked second among Greece's 13 administrative regions and 40th among 244 EU regions in terms of real GDP growth. This represented a significant improvement compared with 2023, when it ranked seventh nationally and 110th across the EU.
The governor also pointed to improvements in payment delays. The proportion of residents experiencing payment arrears fell from 61.8% in 2023 to 46.3% in 2025, a decrease of 15.5 percentage points.
Regarding EU funding, the region ranked first among Greece's 13 regions in project commitments under its Regional Programme as of August 2026, reaching 110% of its allocated budget. It ranked fourth in payments, with an absorption rate of 35%.
HOUSING AFFORDABILITY REMAINS A MAJOR PROBLEM
Housing costs emerged as one of the region's most serious challenges.
Iliopoulos cited Eurostat figures indicating that 33.9% of households in Eastern Macedonia and Thrace spend more than 40% of their disposable income on housing-related expenses, including rent, mortgage payments and utility bills.
He also highlighted the region's position at the top of the EU housing cost overburden rankings in 2025, after ranking second in 2023. Topsidis acknowledged the problem, noting that the first 12 positions in the EU rankings were occupied by Greek regions in 2025.
The governor argued that addressing the housing crisis requires more than housing support schemes, which largely fall under national government responsibilities. He stressed the importance of increasing household incomes and strengthening the regional economy.
As part of the second revision of the 2021–2027 EU funding programme, the regional administration secured €10 million for affordable housing initiatives. According to Topsidis, this was the third-largest allocation among Greek regions, after Attica and Central Macedonia.
UNEMPLOYMENT FALLS, BUT YOUTH JOBLESSNESS REMAINS HIGH
The governor also reported improvements in employment indicators between 2023 and 2025.
Overall unemployment declined from 12.1% to 10.6%, while the number of long-term unemployed people fell from approximately 18,800 to 13,300.
The long-term unemployment rate also decreased from 61.5% in 2023, according to the figures presented.
Youth unemployment among people aged 15–24 dropped from 31.8% to 23.8%, an eight-percentage-point reduction. Meanwhile, the proportion of young people not in employment, education or training (NEETs) declined from 13% to 10.6%.
However, Iliopoulos stressed that structural weaknesses persist. He pointed to the continued prevalence of long-term unemployment, gender inequalities in part-time employment and the limited diversification of the regional economy.
According to the figures he presented, women's part-time employment stood at 11.46%, compared with 3.66% among men.
TECHNOLOGY SECTOR AND DEMOGRAPHIC TRENDS
The region also faces challenges in diversifying its economic structure and expanding high-skilled employment.
Topsidis said employment in high-technology sectors, measured through a broader Eurostat indicator, nearly doubled from 0.9% in 2023 to 1.9% in 2025. Although still below the national average, he described the increase as a positive development.
He also highlighted an unexpected demographic trend: between 1 January 2023 and 1 January 2025, the region's population reportedly increased by 6,188 people, while Greece as a whole lost nearly 30,000 residents.
The old-age dependency ratio also improved slightly, falling from 38.4% to 38.1%, while the national figure deteriorated.
Topsidis cautioned, however, that these developments should not be interpreted as a reversal of the region's demographic problems and said the population increase required further investigation.
Participation in lifelong learning also improved, rising from 2.4% in 2023 to 4.6% in 2025.
MILLIONS ALLOCATED TO YOUNG PROFESSIONALS AND INNOVATION
The regional administration has introduced several funding initiatives aimed at strengthening employment, entrepreneurship and innovation.
These include:
Young Scientists Programme: €19.3 million allocated to support the recruitment of highly qualified young unemployed people. A total of 273 businesses benefited, creating approximately 300 jobs for specialised personnel.
Research and Innovation: A budget of €17 million to support approximately 84 businesses.
Youth Entrepreneurship: €3 million allocated, enabling 66 residents to establish businesses.
RIS3 Strategic Innovation: €55 million allocated to support 225 existing businesses.
The regional administration has also worked with the Organisation for Economic Co-operation and Development (OECD) on a report entitled Rethinking Regional Attractiveness in Eastern Macedonia and Thrace, presented in February 2025. The report identifies priorities including transport and digital infrastructure, skills development and social cohesion.
REGIONAL SOCIOECONOMIC OBSERVATORY UNDER IMPLEMENTATION
Responding to Iliopoulos's request for a Socioeconomic Indicators Observatory with data updates every six months, Topsidis said the initiative was already being implemented and that regional policies were increasingly being designed around socioeconomic data.
Iliopoulos had called for a reassessment of European funding priorities, with greater emphasis on young people and the region's structural problems.
Concluding his remarks, Topsidis acknowledged that significant challenges remain in unemployment, poverty, productivity and demographic development.
He argued that problems accumulated over decades cannot be resolved within a few months, stressing the need for long-term planning, institutional responsibility and collective efforts.
"Eastern Macedonia and Thrace continues to face significant development and social challenges. Nobody claims that unemployment, poverty, low productivity or demographic pressures have been definitively overcome," the governor said.
He added that Eurostat's findings reflected genuine weaknesses but also documented measurable improvements, arguing that regional performance should be assessed through objective comparisons rather than one-sided interpretations.
