By V. Kostoulas
A drop in the value of Greek exports in the first half of the year, which aggravated an already recession-plagued economy, has been mostly attributed to still low oil prices, which affected fuel product exports.
Nevertheless, a 1.4-percent decrease in exports of non-fuel products, compared with the same period in 2015, again raised acute concerns over the anemic – and now sliding – course of Greece’s exporting sector.
Economic planners have repeatedly pointed to robust exports as an essential ingredient in reversing the economic meltdown and placing the Greek economy on more solid foundations for future growth. Boosting competitiveness and an outward-looking business model have long been identified as the “keys” to achieving greater exports, yet seven years into the economic crisis exporters’ groups are now issuing urgent calls for more action and measures.
While exports posted a slight increase in the first half of 2015, the gains were reversed in the second half, with the first six months of 2016 showing a further decline.
As “N” reported last week, the exporters’ association announced that exports for H1 2016 dropped to 2012 levels, falling by 8.1 percent and below 12 billion euros at 11.8 billion euros. The corresponding figure for 2015 was 12.8 billion euros.
According to Aristos Doxiadis, the author of a Greek-language book on the crisis and its causes, Greek businesses with export potential are small and often family run. As a result, professionals with different backgrounds are seldom recruited or trusted with the top spots in such firms.
Doxiadis also points out that Greece’s best corporate performers were those with state contracts and dealings. Another negative factor, as he said, is an inability by many Greek firms to chart a long-term sales strategy for overseas markets, given that patience and a “long view” are usually necessary for success in a foreign market setting.
