Sectoral Dynamics Index (SDI): Introducing a sectoral performance monitoring tool for the Greek economy
September 2025
- Until now, our research team has developed bottom-up assessments tools that provide valuable insights into the performance of sectors, utilising data from the financial statements of the whole Greek corporate universe, based on the respective methodology criteria and data availability.
- This approach is very meticulous, since our tools examine the performance of a wide range of firms, from the micro enterprises to the large corporations. However, due to the data nature, the publication of our analysis is annual. Moreover, the data usually has a two-year lag at the time of publication because of the pace of financial statements releases and subsequently the completion of adequate updating of the relevant databases.
- So, we wanted to fill in the time and frequence gap with the construction of a new analytical tool, which bridges the above limitations.
- We are proud to introduce a new sectoral monitoring tool, which aims to provide useful, more updated, insights into the performance of the Greek economic sectors. We constructed a new Index, named Sectoral Dynamics Index (SDI), with quarterly frequency and lag of only one or two quarters at the time of publication.
- The difference from our previous assessment tools is that we use a top-down approach. This allows us to take advantage of the sectoral aggregated secondary data released by statistical sources.
- Our new monitoring tool comes to supplement the existing assessment models and to give a holistic view of the sectoral health. The Sectoral Dynamics Index reflects the dynamics over time and sectoral shifts, and it could be a useful repository for stakeholders to make informed decisions based on scientifically structured analysis.
- We intent to update the Index on a continuous base, giving insights into recent trends. The frequent updates allow us to incorporate short-term fluctuations and capture significant market dynamics. In other words, our new Index, the SDI, has the characteristics of a coincident indicator and so, it can be used by stakeholders for proactive responses and effective policies to market conditions.
- By comparing the SDI index and its change, each sector can be classified into four categories:
i. sectors with high and accelerating dynamics,
ii. sectors with high but decelerating dynamics,
iii. sectors with low and decelerating dynamics, and
iv. sectors with low but accelerating dynamics.
- Since 2020, the Greek economy has encountered several external shocks, including the effects of the COVID-19 pandemic, Russia's invasion of Ukraine, and the resulting energy crisis. While some sectors experienced setbacks, others benefited.
- In 2021, activity in many sectors was suspended, which slowed down their business performance.
- Consequently, 2022 saw a recovery in economic activity, with nearly all sectors showing improvements in sales and profits.
- However, economic activity was further affected by disruptions in the global supply chain following the reopening of economies and rising energy costs. This disruption contributed to rising prices driven by cost inflationary pressures, which were largely passed on to consumers. These effects are captured in our new sectoral index (SDI) and its components. Conversely, labour costs shifted favorably for most sectors.
- The manufacturing of petroleum products and the energy sectors were the primary beneficiaries of the positive momentum in 2022.
- Since 2023, the mining and quarrying sector has demonstrated positive momentum, thus increasing its footprint in the Greek economy.
- The positive trend from 2022 continued into the first quarter of 2023, but declined during the remainder of the year, mainly due to the base effect from 2022. The labor costs and mixed contributions from business dynamics and lending were the drivers of 2023 trends.
- In 2024, most sectors did not outperform compared to the previous year. Business dynamics had the highest negative significance to the lower performance of SDI, following by labour cost.
- Based on the SDI results for Q1 2025, the sectors demonstrating the most robust performance dynamics included:
i. water supply, sewerage, and related services,
ii. agriculture,
iii. mining and quarrying, and
iv. professional, scientific, and technical activities.
- Lastly, when comparing Q1 2025 to the average SDI score of 2024, two sectors were identified as exhibiting high and accelerating performance:
i. water supply, sewerage, and related services, and
ii. agriculture.