Exports keeping industry afloat

Industrial output in Greece declined a total of 30.3 percent from 2008 to 2013, with more than 50,000 jobs lost in manufacturing over the same period, according to a survey jointly conducted by the Panhellenic Exporters Association and the Athens Chamber of Commerce and Industry.

The easy conclusion might be that this contraction is due to the economic crisis and the reduction in domestic consumption. But that is only part of the truth, as the figures are the result of a long process that saw a major increase in unit labor costs without a proportionate increase in productivity. The opportunity for growth in Greek manufacturing was missed and the sector is now seeking a way out of the crisis, mainly through exports.

The survey found that the average annual growth rate of the industrial output index from 1995 to 2007 - i.e. before the crisis broke out - was just 0.6...