IMF analyzes Greek exports and German trade surplus

An IMF study indicates that Greek exports, while projected to reach 40% of GDP by 2025, are characterized by low quality and low added value. The report notes a domestic value-added multiplier of only 0.43, meaning for every 1 euro of exports, only 43 cents are added to the national income. This is attributed to significant import leakages, where raw materials and intermediate goods must be imported to produce exportable products. Traditional sectors like petroleum, metals, and agriculture remain low in value-added, while high-tech sectors like pharmaceuticals show growth but limited impact on domestic value addition.

In Germany, September exports rose by 2% to 141.1 billion euros, significantly exceeding analyst expectations of a 0.5% increase. This growth was primarily driven by demand from the European Union, where shipments rose by 3.5%. However, a 4.2% increase in imports led to a contraction of Germany's trade surplus, which fell to 15.6 billion euros from 17.9 billion euros in August. While European demand bolstered performance, exports to China, the United States, and the United Kingdom saw declines.