How do Digital Technologies Drive Greece's Economic Growth? Opportunities and Challenges

Abstract

Digital transformation is a driver of economic growth by improving labour productivity, increasing competitiveness and exploiting the potential of e-commerce. Digital revolution is “a game changer” as it reshapes the way production, distribution and consumption are organised within firms and across industries and markets, thus making traditional production models obsolete. By leveraging its human capital stock, Greece can catch up with the other EU-28 countries and gain multiple advantages from digital technologies, such as higher total factor productivity, enhanced competitiveness and increased extroversion. The end result will be sustainable growth. This paper aims to present the digital performance of the Greek economy and society and discusses how digital technologies can contribute to Greece’s economic growth, with a particular focus on jobs, skills and the learning ecosystem. Given that FinTech is a driver of financial sector development, we also explore the implications of digitalisation for the Greek financial system. To this end, specific policy recommendations covering five policy areas are set out with a view to harnessing the emerging opportunities and ensuring that the benefits are shared by all.

Keywords: 4IR, digital technology and growth, education and skills, FinTech, Greece