It may sound “paradox”, but it is verified by statistics on: Its development increases the… , i.e. the gap between imports and exports against the latter. What does that mean? That the more the Greek economy enlarges, its economic dependence (and therefore its risk to potential international turmoil) increases from the products it introduces, as shown by the increase in its trade deficit during the periods of development! However, as one would assume ‘reasonably’ , the opposite would have to happen, i.e. the growth of an economy based not only on increasing exports (which is done in the case of Greece) but also on reducing imports by replacing them with locally produced products. According to an extensive study published today (22.11. 24) for the trade deficit, Eurobank Research’s research department, “the deficit in the balance of goods deteriorated significantly in 1988-2008, during which the Greek economy developed at an average annual rate of 2.9%, resulting in an annual rate of €44.3 billion in 2008 out of just €5.8 billion in 1988 (+7,6 times)”. On the contrary, Eurobank’s study “with the outbreak of the economic crisis and the implementation of the economic adjustment programmes the deficit was significantly reduced to €16.5 billion in 2015 (-62.9% compared to 2008). However, in the following years and by 2023 it nearly doubled to €31.9 billion in 2023, while the year before it reached 38.8 billion euros.” Eurobank’s study does not mention the average growth rate in 2009–2023. However, a look, in ELSTAT’s data, shows that during 2009 – 2023 (in which the trade deficit was generally reduced) , under the burden of bankruptcy, the Memoranda, the coronavirus crisis and then the energy crisis, etc., the Greek economy… sub – developed, i.e. shrunk, as the average rate (non) growth rose to -1.1%.
How the development of the Greek economy swells its trade deficit
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