Crisis-Proof Sectors: Which Greek Industries Withstood COVID-19 and Why

Reading time: 15 minutes

Table of Contents

1. Introduction
2. Overview of Greece’s Economic Landscape
3. Resilient Sectors During the Pandemic
4. Factors Contributing to Sector Resilience
5. Government Support and Policy Measures
6. Future Outlook and Potential Growth Areas
7. Lessons Learned and Strategies for Crisis-Proofing
8. Conclusion
9. FAQs

1. Introduction

The COVID-19 pandemic has been an unprecedented global crisis, causing widespread economic disruption across industries and national economies. Greece, a country still recovering from its decade-long debt crisis, faced significant challenges as the pandemic unfolded. However, amidst the turmoil, certain sectors of the Greek economy demonstrated remarkable resilience, adapting to the new reality and even finding opportunities for growth.

This comprehensive analysis delves into the Greek industries that withstood the impact of COVID-19, examining the factors that contributed to their resilience and the lessons that can be drawn for future crisis-proofing strategies. By understanding these dynamics, we can gain valuable insights into the evolving nature of economic resilience in the face of global challenges.

2. Overview of Greece’s Economic Landscape

Before we dive into the specific sectors that demonstrated resilience during the pandemic, it’s crucial to understand the broader economic context in which Greece entered this crisis.

2.1 Pre-Pandemic Economic Indicators

Greece had been on a path of gradual recovery following its debt crisis, with the following key indicators showing positive trends in 2019:

• GDP Growth: 1.9% year-on-year
• Unemployment Rate: 17.3% (down from peak of 27.5% in 2013)
• Public Debt-to-GDP Ratio: 180.5% (still high, but stabilizing)
• Tourism Revenue: €18.2 billion (record high)

These figures painted a picture of an economy slowly regaining its footing, with tourism playing a particularly crucial role in driving growth and employment.

2.2 Initial Impact of COVID-19

The onset of the pandemic in early 2020 brought immediate challenges:

• GDP Contraction: 8.2% in 2020
• Tourism Revenue: Plummeted by 76.5% in 2020
• Unemployment: Rose to 16.3% in Q2 2020

The sudden halt in international travel and domestic lockdowns hit the Greek economy hard, particularly in sectors heavily reliant on tourism and hospitality. However, even as these traditional pillars of the Greek economy faltered, other industries demonstrated surprising resilience.

3. Resilient Sectors During the Pandemic

Several Greek industries not only weathered the storm but in some cases thrived during the pandemic. Let’s examine these sectors in detail:

3.1 Technology and Digital Services

The technology sector in Greece experienced significant growth during the pandemic, driven by:

• Increased demand for remote work solutions
• Growth in e-commerce platforms
• Expansion of digital health services

Notable success stories include Greek tech startups like Skroutz (e-commerce) and Beat (ride-hailing), which saw substantial user growth during lockdowns.

3.2 Pharmaceutical and Healthcare

Greece’s pharmaceutical industry demonstrated strong resilience, with:

• Exports of pharmaceutical products increasing by 62% in 2020
• Domestic production of medical supplies ramping up
• Investments in research and development for COVID-19 treatments

Companies like DEMO Pharmaceuticals and Lavipharm played crucial roles in supplying essential medications and medical equipment during the crisis.

3.3 Agri-Food Sector

Greece’s agricultural and food processing industries showed remarkable stability:

• Agricultural exports remained steady, with a slight increase in some products
• Domestic demand for local produce increased during lockdowns
• Food processing companies adapted quickly to changing consumer habits

The sector’s resilience was particularly evident in the performance of companies like Creta Farms and Melissa-Kikizas, which maintained strong sales throughout the pandemic.

3.4 Renewable Energy

The renewable energy sector in Greece continued its growth trajectory during the pandemic:

• Wind and solar power installations increased by 15% in 2020
• Government commitments to green energy transition remained strong
• International investments in Greek renewable projects continued

Companies like Terna Energy and Mytilineos Group saw their renewable energy portfolios expand despite the broader economic challenges.

4. Factors Contributing to Sector Resilience

The resilience demonstrated by these sectors can be attributed to several key factors:

4.1 Adaptability and Innovation

Companies in resilient sectors showed remarkable agility in adapting to new market conditions. This included:

• Rapid digitalization of operations and services
• Development of new products to meet pandemic-related demands
• Restructuring of supply chains to ensure continuity

4.2 Strong Export Orientation

Sectors with a significant export focus, such as pharmaceuticals and certain agricultural products, were able to maintain revenue streams even as domestic demand fluctuated. This international diversification proved to be a crucial buffer against local economic shocks.

4.3 Essential Nature of Products and Services

Industries providing essential goods and services, such as healthcare and food production, naturally saw sustained demand throughout the crisis. This ‘essential’ status also meant these sectors faced fewer restrictions during lockdowns.

4.4 Pre-existing Digital Infrastructure

Companies that had already invested in digital technologies and e-commerce capabilities were better positioned to transition to remote work and online sales models. This was particularly evident in the tech sector and among more digitally-advanced companies in traditional industries.

5. Government Support and Policy Measures

The Greek government’s response to the economic challenges posed by the pandemic played a significant role in supporting resilient sectors:

5.1 Financial Support Packages

The government implemented a series of measures to support businesses, including:

• Tax deferrals and reductions for affected companies
• Subsidies for employee salaries in hard-hit sectors
• Low-interest loans and guarantees for businesses

5.2 Targeted Sector Support

Specific initiatives were launched to bolster key industries:

• Increased funding for healthcare and pharmaceutical research
• Acceleration of renewable energy project approvals
• Support for digitalization efforts across industries

5.3 EU Recovery Funds

Greece’s access to EU recovery funds provided additional support, with a focus on:

• Green transition projects
• Digital transformation initiatives
• Healthcare system upgrades

These funds are expected to play a crucial role in sustaining the momentum of resilient sectors and supporting the broader economic recovery.

6. Future Outlook and Potential Growth Areas

As Greece emerges from the immediate crisis, several trends and opportunities are shaping the future outlook for resilient sectors:

6.1 Continued Digital Transformation

The acceleration of digital adoption is expected to continue, creating opportunities for:

• Expansion of e-commerce and digital services
• Development of smart city technologies
• Growth in fintech and digital banking solutions

6.2 Green Economy Initiatives

Greece’s commitment to renewable energy and sustainable development presents significant growth potential:

• Expansion of wind and solar power capacity
• Development of energy storage solutions
• Green hydrogen production initiatives

6.3 Health and Wellness Sector

The pandemic has heightened focus on health and wellness, creating opportunities in:

• Telemedicine and digital health services
• Production of nutraceuticals and functional foods
• Health tourism and wellness retreats

6.4 Advanced Manufacturing

There’s potential for growth in high-value manufacturing, particularly in:

• Pharmaceutical and medical device production
• Precision engineering for renewable energy components
• Advanced materials and nanotechnology applications

7. Lessons Learned and Strategies for Crisis-Proofing

The experiences of resilient sectors during the pandemic offer valuable lessons for businesses and policymakers:

7.1 Diversification is Key

Companies and sectors with diversified revenue streams, whether through a mix of products or geographical markets, proved more resilient. This underscores the importance of not relying too heavily on a single market or product line.

7.2 Invest in Digital Capabilities

The pandemic accelerated digital transformation across industries. Businesses that had already invested in digital infrastructure were better positioned to adapt. Continued investment in digital technologies and skills will be crucial for future resilience.

7.3 Focus on Innovation and Adaptability

Companies that quickly pivoted their operations or developed new products in response to changing market conditions fared better. Fostering a culture of innovation and maintaining operational flexibility are essential for navigating future crises.

7.4 Build Robust Supply Chains

The pandemic exposed vulnerabilities in global supply chains. Developing more resilient, potentially localized supply networks can help buffer against future disruptions.

7.5 Prioritize Sustainability

Sectors aligned with sustainability goals, such as renewable energy, demonstrated strong resilience. Integrating sustainability into business models can enhance long-term viability and attract investment.

8. Conclusion

The COVID-19 pandemic has been a stark reminder of the unpredictable nature of global crises and their potential to reshape economies. However, the resilience demonstrated by certain sectors of the Greek economy offers valuable insights and hope for the future.

Technology, healthcare, agri-food, and renewable energy emerged as standout performers, leveraging their inherent strengths and adapting quickly to new realities. Their success underscores the importance of innovation, digitalization, and sustainability in building economic resilience.

As Greece moves forward, the lessons learned from these resilient sectors can inform broader economic strategies. By fostering innovation, investing in digital infrastructure, and prioritizing sustainable development, Greece can build a more robust and adaptable economy capable of withstanding future shocks.

The path ahead will undoubtedly present new challenges, but it also offers exciting opportunities for growth and transformation. By embracing the principles that enabled certain sectors to thrive during the pandemic, Greece can position itself for a more resilient and prosperous future.

For those looking to invest in Greece’s recovering economy, the property for sale greece market offers interesting opportunities, particularly in areas aligned with resilient sectors.

9. FAQs

Q1: How did Greece’s tourism industry fare during the pandemic?

A1: Greece’s tourism industry, traditionally a major economic driver, was severely impacted by the pandemic. Tourism revenue fell by 76.5% in 2020 compared to the previous year. However, the sector has shown signs of recovery in 2021 and 2022, with the government implementing measures to ensure safe travel and accommodation.

Q2: What role did EU funding play in supporting Greece’s economy during the crisis?

A2: EU funding played a crucial role in supporting Greece’s economy. The country received significant allocations from the EU’s Recovery and Resilience Facility, which are being used to support digital transformation, green transition, and healthcare system upgrades. This funding is expected to contribute significantly to Greece’s economic recovery and long-term resilience.

Q3: How has the Greek startup ecosystem evolved during the pandemic?

A3: The Greek startup ecosystem showed remarkable resilience and growth during the pandemic. Many tech startups experienced increased demand for their services, particularly in areas like e-commerce, fintech, and digital health. The crisis also accelerated investment in Greek startups, with several companies securing significant funding rounds despite the challenging economic environment.

Q4: What measures has Greece taken to support its renewable energy sector?

A4: Greece has implemented several measures to support its renewable energy sector, including streamlining the approval process for new projects, offering financial incentives for green energy investments, and setting ambitious targets for renewable energy adoption. The government’s commitment to phasing out coal-fired power plants by 2028 has also created additional opportunities in the renewable sector.

Q5: How has the pandemic affected Greece’s efforts to attract foreign investment?

A5: While the pandemic initially slowed foreign investment, Greece has maintained its efforts to attract international capital. The government has implemented reforms to improve the business environment, including digitalization of public services and simplification of investment procedures. Sectors like technology, renewable energy, and logistics have continued to attract foreign interest, with several notable investments announced even during the height of the pandemic.

Article reviewed by Georgi Ivanov, Corporate Lease Negotiator | Industrial Real Estate Strategist, on March 22, 2025