(Greece) – According to the Hellenic Statistical Authority, or ELSTAT, the trade deficit involving Greek exports has increased in April of 2016. According to Webster’s Dictionary, a trade deficit occurs when a country buys more goods from other countries than companies by from them. In other words, the value of the imports exceeds the exports.
According to ELSTAT, the total value of Greek exports was around 2.10 billion euros in April of 2016, which is a 3.8% decline from April of 2015. They also when on to say that exports were at a 2.2% increase. However, that figure didn’t include fuel. Imports were valued at around 4.16 billion euros, which shows a 7.1% increase over April of 2015 when imports were valued at 3.88 billion euros. This means that there is a 26.5% increase. The trade deficit rose from 21% in April 2015, which means that there was a rise of 57.7% as of April of 2016. In the first four months of 2016, the trade deficit increase by 20.8%.
Companies involved in exports have also been bombarded with industrial actions and other complications. For instance, port workers are currently on strike in both Piraeus and Thessaloniki, which both have major ports. SEVE, known as the Greek International Business Association, predicts that these strikes will negatively impact the finances at both of these ports. This means that businesses haven’t been able to deliver their goods to Greece and Greek companies haven’t been able to ship their goods elsewhere. The delays caused by these strikes has also led to an increase in the cost of these goods because businesses have had to find other options to make their deliveries, which are often more expensive. In other words, the cause of this increase has been pinpointed to the rise in imports and also a slow-down of new orders originating from the international market.
Many economic experts believe that this trade deficit is one of the things that has been responsible for the recession that the country has been in since before the first bailout occurred in 2010.