During 2014, the amount of money flowing out of Greece to pay for imported products amounted to US$62.2 billion. That total is far greater than the $35.8 billion Greeks earned from sales of its exports.

Officially called the Hellenic Republic, Greece’s trade deficit for 2014 is $26.4 billion. Given a population of 10.7 million increasingly stressed people, that metric has a human face: an annual $2,452 per person is contributed to the nation’s growing international debt.

While the 2014 deficit is down 32% compared to the $38.9 billion shortfall during 2010, Greece actually grew its negative trade balance by 6.2% since 2013 thus breaking what looked to be an improving trend since 2008 when its deficit stood at $63.2 billion.

Just as troubling are the imported products that drive the greatest percentage of Greece’s trade deficit.

 

Greek Trade Deficit-Causing Imports

Below are the top 10 imported products that are the major factors accounting for 88.1% of Greece’s trade deficit in 2014.

1. Crude oil: -$14,887,979,000 (56.3% of Greece’s trade deficit)
2. Cruise/cargo ships, barges: -$2,264,926,000 (8.6%)
3. Medication mixtures in dosage: -$1,601,841,000 (6.1%)
4. Petroleum gases: -$1,074,117,000 (4.1%)
5. Cars: -$1,060,324,000 (4%)
6. Swine meat: -$557,867,000 (2.1%)
7. Fresh or chilled bovine meat: -$486,276,000 (1.8%)
8. Ethylene polymers: -$464,165,000 (1.8%)
9. Phone system devices: -$449,075,000 (1.7%)
10. Electrical energy: -$431,805,000 (1.6%)

Not only did raw petroleum result in over half of Greece’s deficit, crude oil debt has accelerated by 34.4% since 2010.

In contrast, Greece has reduced the negative cash flow from cruise ships, cargo vessels and barges with a 40.3% improvement on the $3.8 billion deficit on those imported big-ticket items since 2010.

It’s hard to see how the Hellenic Republic can overcome its addiction to foreign oil while keeping the Greek economy running efficiently given the magnitude of $14.9 billion spend on imported crude during 2014.

Greece’s Top 10 Surplus-Creating Exports

Greece did have some winners among the products bought and sold in international trade markets. The following list shows the top 10 Greek products that created surpluses in 2014.

1. Processed petroleum oils: $8,739,055,000 (33.1% of Greece’s trade deficit)
2. Aluminum plates, sheets, strips: $520,189,000 (2%)
3. Whole fish (fresh): $508,296,000 (1.9%)
4. Miscellaneous vegetables (non-frozen): $420,790,000 (1.6%)
5. Copper tubes, pipes: $411,509,000 (1.6%)
6. Cotton (uncarded or uncombed): $404,016,000 (1.5%)
7. Miscellaneous preserved fruits: $349,106,000 (1.3%)
8. Olive oil: $301,756,000 (1.1%)
9. Hydraulic cements: $266,475,000 (1.0%)
10. Furskin clothing and accessories: $231,692,000 (0.9%)

Can Greece dramatically increase production of processed petroleum sold to its trade partners without aggravating deficit spending on crude oil? The answer would appear to be beyond Greece’s control, and depend more on the going price of oil and relationships with its trade partners.

One thing is for sure.

Greece’s $345.9 million worth of olive oil exports may generate a $301.8 million surplus while its fresh fish shipments adds another $508.3 million in positive cash flow. However, both a far cry from the $14.9-billion-and-growing headache that imported crude oil is causing.

Research Sources:
International Monetary Fund, World Economic Outlook Database (GDP based on Purchasing Power Parity). Accessed on June 28, 2015

The World Factbook, Field Listing: Exports and World Population, Central Intelligence Agency. Accessed on June 28, 2015

Trade Map, International Trade Centre, www.intracen.org/marketanalysis. Accessed on June 28, 2015