The integration of immigrants in order to fill the key gap in the labor force and skills in the domestic labor market, the governor of the Bank of Greece, Giannis Stournaras, asked in his speech at the second MD Forum.

As he said at the present time, there are significant labor shortages in key sectors of the economy, such as tourism, agricultural production, industry and construction, and many jobs remain vacant.

Therefore, in the midst of demographic challenges and an aging population, the debate on the overall positive impact of immigration on the Greek economy is more relevant than ever. Moreover, migration due to the climate crisis may surpass all previous ones, as the ever-increasing frequency of extreme weather events will drastically increase global mobility.

“In this context, the host country’s responsibility to define the institutional framework for migrant inflows, to draw up strategies and develop policies that promote their integration into society is crucial. Improvements are also necessary in the more effective interconnection of immigration with the needs of the labor market and in the establishment of incentives to attract skilled immigrants,” he said.

Referring to the progress of the Greek economy, he argued that despite the continuous international crises and the high uncertainty caused by the war in Ukraine and the war situation in the Middle East, the Greek economy is expected to grow at a faster rate compared to the Eurozone this year, as well as the next years. A sustained effort is required to maintain the confidence of international investors in the prospects of the Greek economy and to continue the upgrades of the credit rating of the Greek Government, which mitigate the effects of interest rate increases on the cost of borrowing, with positive effects on the real economy.

In this context, as he said, the labor market is expected to continue to improve in the medium term, however maintaining growth in an environment of increased interest rates and high uncertainty due to geopolitical tensions is another important challenge. The improving trend of the labor market will be supported by the implementation of the National Recovery and Resilience Plan “Greece 2.0” through the increase of private investments and the creation of new and better paid jobs.

The implementation of reforms, such as for example speeding up the administration of justice, effectively combating widespread tax evasion, limiting underreported and uninsured work, removing distortions that remain in the markets for goods and services, will enhance productivity and structural competitiveness, will lead to a higher potential growth rate and an improvement in the labor market. The benefits of labor market progress will spread to a larger part of the population, reduce inequalities and social exclusion and strengthen social cohesion.