A look at Greece's deserted towns reveals a nation grappling with a severe 'population crisis'.

• The "ghost" towns and villages of Greece provide an eerie glimpse into the future of a country whose Prime Minister has warned of an "existential" population collapse.
• The country has large empty areas due to a decline in births, economic difficulties, and widespread emigration.
• The decline in population is putting a significant strain on society, as there are insufficient young workers to drive economic growth and care for the elderly.

Saint George cafe in Lasta, Greece, is now unstaffed as there are no people left to manage it.

An honor system is in place; simply consume a drink, make a contribution, and immerse yourself in the remnants of a forgotten past.

The abandoned school and derelict houses in the deserted square hint at the potential population collapse of the country, despite the lively residents depicted in photos on the walls.

Hundreds of depopulated or abandoned "ghost" towns and villages across Greece serve as a visible reminder of declining births, economic hardship, and mass emigration.

A country emerging from crisis is facing a significant strain due to a population decline, as there are insufficient young people to sustain the economy in the future.

ING's chief economist, Bert Colijn, stated via phone to CNBC that although Greece is currently experiencing strong growth, maintaining this pace in the future will be challenging due to a decreasing workforce.

Falling birth rate an 'existential' threat

In Europe, Greece has one of the lowest fertility rates, at 1.3, which is half of the 1950 rate and below the 2.1 needed for population replacement.

The number of births in Greece last year was the lowest since records began almost a century ago, down around 6% from the previous year. The country now has one birth for every two deaths, and the share of the population aged over 65 is nearly twice that aged 0 to 14.

The Prime Minister of Greece, Kyriakos Mitsotakis, issued a warning about an "existential" threat to Greek society due to the country's susceptibility to broader demographic changes affecting developed nations.

Last year, at a Greek demographic conference, Mitsotakis stated that our people are among the oldest in Europe.

Some areas of the Greek mainland and its numerous islands are more affected by the issue than others.

"The population decline is not uniform across the country, with certain areas experiencing higher peaks. This necessitates both national and local strategies to address the issue, as the demographic collapse poses an existential threat to our future."

The decline is evident through the emergence of numerous ghost towns and villages, which are deserted as local populations depart or perish. Despite their remote locations, it is challenging to determine the exact number of such places, but recent estimates suggest that there are approximately 200 entirely abandoned towns and villages.

While many places have faded into obscurity, with dilapidated structures being the only remnants of their past, others, such as Lasta, have become popular tourist destinations, drawing visitors to their cafes and abandoned buildings to witness history.

In 2021, Greece's last census recorded Lasta's permanent population as 12. However, during CNBC's visit in 2024, there were no indications of permanent residents in the area.

Remnants of the Greek Financial Crisis

The country's sovereign debt crisis of 2009 led to a significant demographic decline in Greece. The resulting bailout programs and years of austerity caused the economy to contract by as much as a quarter over the past decade.

In the first quarter of 2013, the unemployment rate among young people reached a peak of 59.5%, which was more than twice the national average of approximately 27%.

Many were unable to create new lives outside their family homes. Of those who did, many went overseas, with an estimated 400,000 people - 9% of the workforce - emigrating during the period. The majority of the remaining population relocated to Greece's big cities in search of better work and education opportunities.

Over half (53.5%) of the Greek population resides in Athens, Thessaloniki, and the surrounding Attiki region, while all other regions, including the islands, have experienced population decline in recent years.

Demographers claim that the country's population decline can be traced back to the 1980s, a time of economic decline. Since then, a decrease in birth rates has resulted in a reduction of women of childbearing age, with the number of women aged 20 to 40 now 150,000 lower than five years ago.

Initiatives to support population growth

By 2050, the population is projected to decrease by more than a quarter, from approximately 10.4 million to 7.5 million.

Last year, Mitsotakis established a new Ministry of Social Cohesion and Family Affairs to strengthen and coordinate assistance for children and at-risk populations.

The ministry declared in October that it would allocate 20 billion euros ($21 billion) by 2035 to encourage population growth through incentives such as child benefits, parental leave, and tax breaks. Sofia Zacharaki, head of the office, stated that the measures were intended to prompt society to take action.

The younger population requires a sense of security and optimism, which can be achieved through something that creates a shock, as stated by Zacharaki, minister of social cohesion and family affairs, during a video call with CNBC.

The recurring crisis and sense of disillusionment have instilled a mindset issue in many young people, which is not just an economic impact. The funding should provide more people with the choice to start a family.

Colijn expressed doubt that child support measures would reverse the trend and that significant policy changes may be necessary to support demographic shifts.

No policy has been introduced that has resulted in a swift turnaround in the decline, he stated. He suggested that other policies, such as incentives to keep young people in Greece and attract back those who left, might be effective.

Demographic shifts weigh on economic growth

Despite Greece's improved economic outlook, its demographic decline remains a challenge.

In 2024, the Greek economy is expected to grow 2.2%, and in 2025, it is projected to grow 2.3%, surpassing the growth rates of Europe's major economies. Despite a wider EU slowdown, the country's initial 2.9% 2025 GDP forecast was only slightly revised.

Demographic decline could undermine economic growth in the long run, warn economists.

Economic growth is largely dependent on demographic changes, particularly the growth of the working age population and their productivity, according to Colijn.

Many developed nations, including Greece, Japan, South Korea, much of the West, and China, face the issue of demographic decline. Japan and South Korea have fertility rates of 1.2 and 0.72 in 2023, respectively, while many Western countries have rapidly aging populations and require greater government support.

According to Jim Reid, Deutsche Bank's global head of macro research, the world is currently experiencing an unprecedented demographic transition, characterized by a slowing global population growth with no clear indication that the trend is about to reverse.

If demographics continue to deteriorate in the 2024-2049 quarter century, it is likely that another quarter century will see below-average real GDP growth and equity returns, particularly in developed markets.