Greece faces export mismatch with European Union demand

An analysis by IOBE reveals a growing gap between the composition of Greek exports and the actual demand within the European Union. While Greece has strengthened its commercial ties with the EU, its trade complementarity index stands at 59 points, one of the lowest in the bloc, surpassed only by Cyprus, Ireland, Malta, and Slovenia.

This indicates that the basket of Greek goods does not align closely with the products European economies are importing. While the EU average for complementarity has remained stable over the last twenty years, Greece’s index has shown a declining trend, suggesting that increased trade volume has not been accompanied by an adjustment of the production mix to meet European market needs.

In contrast, the trade intensity index shows a different trend. Greece recorded 204 points, meaning its share of exports to the EU is approximately double what would be expected based on the EU’s weight in global trade. This high intensity is attributed to geographic proximity, the absence of tariffs, and participation in the single market, though the index still remains below the EU average.