That’s because the multi-billion dollar trade deficit represents international sales opportunities for exports to Greece since the country is a net spender on a specific set of goods highlighted below.
Drilling down from its overall negative balance, Greece performed worst in its international trade with partners from Europe incurring a -$17.4 billion shortfall. Exporters in Asia also profited at Greece’s expense, accounting for a -$10.8 billion trade deficit at Greece’s expense. Middle Eastern exporters also satisfied demand as shown by a -$2 billion Greek deficit.
Country-specific trade deficits indicate Greece’s competitive disadvantages and areas which foreign businesses can and do exploit. Greece accumulated the world’s tenth-biggest trade deficit during 2014.
Greece’s trade deficit in 2014 shrank by 32% since 2010 when its negative balance was -$38.9 billion.
International Sales Opportunities for Exports to Greece
- Top 10
- Growth
- Detail
Top 10
The following list shows the top 10 general product categories under which Greece racked up the severest trade deficits during 2014.
- Mineral fuels including oil: -US$7.6 billion (24.3% of all product deficits)
- Ships, boats: -$2.3 billion (7.3%)
- Pharmaceuticals: -$2.1 billion (6.7%)
- Machinery: -$2.1 billion (6.6%)
- Vehicles : -$1.9 billion (6%)
- Electronic equipment: -$1.6 billion (5.3%)
- Meat: -$1.3 billion (4.1%)
- Organic chemicals: -$1 billion (3.1%)
- Paper: -$776.7 million (2.5%)
- Plastics, plastic articles: -$686.1 million (2.2%)
The above top 10 product categories represent 68% of Greece’s overall product-category deficit subtotal which amounted to -$31.3 billion. For that subtotal, 81 of Greece’s 97 general product categories incurred deficits in 2014 while the remaining 16 categories delivered surplus amounts.
Growth
Detail
Major International Sales by Greece’s Supplying Countries
- Top 10
- Growth
- Russia
- Iraq
- Germany
Top 10
The following list presents trade partners with which Greece racked up the highest trade deficits in 2014.
- Russia: -US$6 billion (15.5% of Greek country-specific deficits)
- Iraq: -$5.1 billion (13.4%)
- Germany: -$3.8 billion (10%)
- Kazakhstan: -$3.2 billion (8.3%)
- China: -$2.9 billion (7.7%)
- Netherlands: -$2.5 billion (6.6%)
- France: -$2 billion (5.1%)
- South Korea: -$1.6 billion (4.1%)
- Italy: -$1.4 billion (3.6%)
- Belgium: -$1.3 billion (3.4%)
The above 10 trade partners represent 77.6% of Greece’s subtotal deficit of -$38.5 billion from the 98 geographic entities with which Greece demonstrated strong import demand. That subtotal excludes the 120 geographic entities with which Greece earned trade surpluses.
Growth
Russia
Iraq
Germany
Research Sources:
The World Factbook, Country Profiles, Central Intelligence Agency. Accessed on December 25, 2015
Trade Map, International Trade Centre. Accessed on December 25, 2015
Investopedia, Net Exports Definition. Accessed on December 25, 2015