Trade deficit remains high
The trade deficit did not increase as steeply in June, but remains at very high levels, according to data released Friday by independent statistics authority ELSTAT.
Preliminary data for June show that imports increased by 53.5% to €8.26 billion compared to June 2021, while exports rose 59.8%, to €5.43 billion. If we exclude oil products, imports rose 25.6% year-on-year and exports 24.1%.
The June trade deficit was €2.83 billion, 42.7% higher than in June 2021. This is definitely a better performance than the €3.09 billion recorded in May, up 84.7% on May 2021.
Despite the improvement, the deficit for the first half of 2022 remains significantly high at €17.59 billion, according to ELSTAT. This is a 71.6% year-on-year increase if oil products are included. If not, the increase in the trade deficit was 50.3%.
The total value of imports during the first half of 2022 was €43.61 billion, 51.1% percent higher than during the same period in 2021. Without the oil products, imports increased 34.1%.
Exports at the same time were worth €26.01 billion, or 39.8% higher than the previous year. Excluding oil products, they rose 24.1%, that is, in both cases they lagged import growth.
According to an analysis by the Panhellenic Exporters’ Association, the value of exports increased in 2022 in all product categories. Oil products topped the list, rising 88.1%, followed by industrial products (43.8%), machinery (27.8%), foods and livestock (18.3%), raw materials (11.6%), chemicals (9.2%), spirits and tobacco (7.7%) and oils (5.7%).
The sharp increase in both imports and exports is not surprising, but the result of full resumption of economic activity following the Covid-19 pandemic. But if there is a global recession, both will be affected and there is a fear that, in Greece’s case, exports will be harder hit than exports. There are already warning signs: The data on the Purchasing Managers’ Index published recently by the Foundation for Economic and Industrial Research (IOBE) show a decline in orders from abroad to Greek manufacturers.
“The war in Ukraine and its effects on the energy sector and supply chains are putting pressure on Greek products’ competitiveness,” said Christina Sakellaridi, president of the exporters’ association.
