K. Skrekas: “We are among the 35 richest countries in the world, with low wages and very expensive products”

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The Minister of Development, Mr. Skrekas, stated during a television interview that “Greece is one of the 35 richest countries in the world, but has one of the lowest wages in Europe, as well as the most expensive products.”

Of course it would be nice to clarify his words. We have no doubt that he means wages. Does he mean high prices? This is exactly what we are talking about, because in Greece there are many goods that cost more than in Germany, and everyone knows how high wages are there and how high they are here. At the same time, he confirmed that the price of baby milk on the Greek market ranges from 30 to 213%!

Minister’s Statement

In particular, Mr. Skrekas stated: “In 2019, Greece ranked second to last in terms of growth rates in the eurozone. In 2023, Greece was among the top three countries in the eurozone in terms of growth rates. In 2019, Greece was an example of bad economic policy, and in 2023, according to the Economist magazine, Greece was the global country of the year, the country with the highest growth, and one of the 35 richest countries in the world.

Of course, we still have a lot to do, and of course we will have to have stronger growth than the rest of the European countries for many years to come if we want to get closer to the European average household living standards. The challenges for the Greek family remain great, and wages are still lower than the European average. That is why our government will continue to pursue economic policies in the coming period aimed at ensuring strong growth that will bring more jobs and higher income to the Greek family.”

Efforts to combat rising prices continue until inflation is subdued and controls are being strengthened, as are measures to stimulate competition, the minister said. He noted that “Perhaps it is not yet visible from the state of the pockets, but the package of measures adopted by the Greek government is gradually bringing results.” “Price stabilization with a 5 percent reduction has been fixed for 1,300 products and will be in effect for 6 months.”– he said.

A review of prices relative to other countries showed that food inflation in Greece is at 25%*, while in Bulgaria it is 35%, in Romania – 29%, and in Spain – 27%, Skrekas added, citing As an example, three countries similar to Greece.

Multifactorial reasons leading to rising prices

• Increasing inflation, that is, rising interest rates, is one of the factors.
• An increase in wages, because wages are rising in Greece and throughout the world, and this contributes to rising prices.
• Disruptions in supply chains due to wars are one of the main reasons for rising prices. In addition, the consequences of the climate crisis and huge disasters in agricultural production, for example, olive oil, citrus fruits, oranges, have pushed up the prices of staple foods, especially for the Mediterranean diet, the development minister said.

“As a government, we will continue to try and will not stop until we see food prices stabilize and, if possible, even begin to decline.”he added.

Three new development programs in 2024

The development minister announced three programs that he said would strengthen the country’s industrial and manufacturing base with the aim of “re-industrializing” Greece.

“Greece must build on the main pillar of growth, which is tourism, and develop other sectors so that we have a multi-dimensional development policy. Industry, processing of Greek agricultural products and sectors related to critical raw materials, as well as research and technology, are the sectors which in the coming period will be supported by the Ministry of Development with the help of new development tools”, – said Kostas Skrekas.

*Food inflation was 25% for subsidized products and 134% for other products and essential goods.

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