Economic analysts report concerning news for Greek agricultural exports as 2024 saw significant shifts in trade patterns. According to Eurobank Research, 55% of Greek exports were directed to EU countries, showing the continent’s importance as the primary market for Greek goods.
Only 4.8% of the exports reached the U.S., indicating potential growth opportunities for Greek exporters within the American market. The overall export value of commodities diminished slightly to €49.9 billion, compared to €51 billion the year before—an overall decline of 2.2%. This decline raises concerns about the underlying structural issues affecting Greek export performance.
Despite the general downturn, the agricultural sector saw promising growth. Greek agricultural exports jumped 12% to reach €11.258 billion, showcasing the resilience of this sector amid broader economic challenges. The data, which reflects the economic situation up until today, highlights how certain products have managed to flourish, even as other categories lag behind.
The Greek Statistics Authority (ELSTAT) emphasized the growth of the fruit and vegetable market, noting strong performances particularly for kiwis. The report indicates fruit and vegetable exports amassed around €672 million, achieving impressive growth of 23.94% by value even as the volume slightly fell by 3.3%. Such figures illuminate the potential of Greek agricultural exports on the international stage.
Further demonstrating Greece's agricultural prowess, the country ranked fourth worldwide for kiwi production and fifth for kiwi exports. The export value of kiwis reached €306.5 million—an impressive increase of 51.24% compared to previous years, even though the volume dipped slightly. This growth attracted many farmers focused on diversifying their production to include more kiwi plantations, driven by the crop’s profitability and favorable market conditions.
International organizations, including the UN's Food and Agriculture Organization (FAO), ranked Greece favorably as it competes with Italy for kiwi supremacy, especially considering Italy’s recent agricultural setbacks caused by poor weather and disease impacting their kiwi production. Such competitive dynamics within European agriculture open avenues for Greek producers, striving to capture greater market shares.
Notably, the favorable kiwi market is complemented by consistent demand from global markets, especially the U.S., where approximately 17,000 tons are imported annually. Other significant export markets for agricultural products include Russia, Vietnam, Namibia, Mexico, Peru, and Kazakhstan.
Despite these achievements, Greek export performance overall—particularly outside the agricultural sector—faces considerable hurdles. The total balance of goods continues to suffer, exacerbated by structural problems within the economy. The goods balance deficit ballooned to -€34.6 billion for 2024, worsening from -€32.1 billion the prior year. Various industrial goods and machinery imports were largely responsible for this volatile balance, accounting for nearly 60% of the widening deficit.
The heightened level of imports, which increased by 1.7% to €84.5 billion, reflects not only strong domestic consumption but also rising demand driven by increased tourism. Therefore, the burgeoning sector of agricultural exports must combat challenges like heightened competition from imports and labor shortages, which significantly increase operational costs for farmers dependent on seasonal labor.
Challenges remain evident, such as the lack of labor hurting capacity and the fast-rising costs of production. Seasonal labor can constitute upwards of 45% of production costs for certain crops, aggravates the sustainability of agriculture as farmers must cope with competitive pressures simultaneously from internal and external markets.
Despite facing more competition from both domestic and foreign factors, the agricultural sector's growth signals potential rescue strategies could be effectively utilized to continue fostering growth. High-quality Greek products have increasingly gained international attention from consumers who appreciate the flavor, quality, and sustainability of their production methods.
Overall, 2024 reflected mixed results for Greece's agricultural exports, with high achievements for certain crops overshadowed by underlying economic concerns influencing broader export levels and trade deficits. The coming years will require judicious policy responses to strengthen agricultural capabilities without sacrificing competitiveness.