Prospects of the ICT sector in Greece

Study of the ICT sector in Greece: Current Situation and Future Trends
Deliverable 14: Prospects of the ICT sector in Greece-policy implications
1. Executive Summary
The analysis of the data gathered during the present study, the current developments, the
obstacles that are still persistent, and the possible sources for further development for the
ICT sector lead to the conclusion that the growth prospects of ICTs in Greece are moderate
optimistic. These appraisals are based on several factors: the gradual attenuation of
demand and supply limitations, especially in the telecommunication sector; the
macroeconomic environment that favours investments; and the gradual transition of the
State to the digital era, ameliorating its efficiency by offering more electronic services to
citizens and firms. However, the verification of these positive expectations depends also on
certain preconditions, whereas there are actions on behalf of both the firms and public
policy that could support this growth. More specifically:
The Global and European economies keep on growing at a rapid rate. Emerging and
developing economies are contributing more and more to this growth and gradually are
changing the structure of the international trade. Within this framework, Greek economy
sustains its high growth rates that outweigh the European averages. These conditions
create a favourable macroeconomic environment for all firms and therefore the domestic
ICT sector as well. Domestic demand is high, basically due to private consumption, while
public investments have also increased. The dynamic elements of the economy, the
improved business climate, and the expressed willingness for reformatory initiatives imply
that economic conditions do not constitute an obstacle for the domestic sector.
Nevertheless, it should be noted that favourable macroeconomic conditions are not a
necessary and mandatory condition for the sector’s growth. At the same time, the long
established structural problems of the Greek economy and possible delays in the
implementation of the planned policy measures and actions create difficulties for all firms,
touching upon ICT firms as well.
Domestic demand for ICT products or services (Public, firms, and consumers) remains small
scaled and problematic. Public sector’s primary demand is not strong and is hindered by
legislative inflexibilities and bureaucracy. As a result, the main projects are implemented
with significant delays. However, a secondary demand, that is a demand induced by actions
that aim at greater familiarization of citizens and firms with ICTs and by the proliferation of
additional electronic services, is far more important. It offers multiplying benefits and
increases the potential client base of the whole ICT sector.
October 2006
Observatory for the Greek IS 4