Edition: International | Greek
MENU

Home » Analyses

Greek trade a pillar of dynamic economic growth

Within the European Union, retail trade is among the most important ecosystems that contribute to the growth of the European economy, while in Greece the dynamics of trade as a whole

By: EBR - Posted: Friday, May 24, 2024

And the Greek retail sector, an important factor in the production of added value, is in a "fighting position" to exploit opportunities, to take on healthy competition, to implement investment projects and to create new jobs.
And the Greek retail sector, an important factor in the production of added value, is in a "fighting position" to exploit opportunities, to take on healthy competition, to implement investment projects and to create new jobs.

by Antonis Zairis*

Within the European Union, retail trade is among the most important ecosystems that contribute to the growth of the European economy, while in Greece the dynamics of trade as a whole, through the 230,000 or so businesses, of which 65% are retail businesses, extends to the wholesale, retail, export and transit trade sectors, as well as to the logistics sector.

Based on official data from as recently as 2010, the importance of trade in our country is considered huge since the value added to GDP amounted to 16%, accounting for 18% of total employment and 23.1% of employment in the private sector of the economy. However, the major restructuring took place in the period 1995- 2008 contributing significantly to productivity growth. In particular, the retail sales volume index at constant prices for the years 1995-2000 showed an increase of +3.8% f with GDP growth in the same period at +3.5%. Similarly, the same index in the period 2000-2008 soared to 14.5% while GDP was at 4.06%. But since 2009 when the great financial crisis started the index has been falling sharply at -9.3%.

Today, after the crisis of the memorandum era followed by the pandemic crisis, Greek trade has entered a new phase of radical transformation with large companies growing further and micro businesses feeling the need for immediate restructuring and reorganization through mergers and acquisitions in order to respond to the newly emerging environment of competitive market operation. However, rapid changes are taking place in purchasing habits and the profile of the modern consumer, with the customer-centric approach and the emphasis on quality service constituting dominant comparative and competitive advantages in the multi-channel trading system imposed by the new market conditions.

According to official data from the INEMY of ESEE, employment in the trade sector accounts for 17.4%, and the number of employers is 95,000 people from 80,000 in 2020, which is why the trade sector is characterized over time as the largest employer in the country. As for the turnover of trade in 2022 reached 167 billion euros, where the retail trade accounted for 51.3 billion euros, and for the first half of 2023 the retail turnover was 31.79 billion euros, significantly increased by approximately 10% compared to the respective half of 2022. Based also on the ELSTAT’s seasonally adjusted data for the first half of 2022, the gross added value generated in the Greek economy amounted to 41 billion euros, while the share of the trade, transport - storage, catering and accommodation services reached 26.5% of the total gross value added.

Retailers today are leading the way by adopting smart strategies in a competitive environment that "generates" daily challenges that require alertness, organisational repositioning, flexibility, skills and increased perceptiveness. The geography of the market is changing and the digital transformation of businesses, with a particular focus on the technologies of the so-called 4th industrial revolution (industry 4.0), is essential. And the Greek retail sector, an important factor in the production of added value, is in a "fighting position" to exploit opportunities, to take on healthy competition, to implement investment projects and to create new jobs. One thing is certain, however, that the destination of retailing is identical to the development of the economy and the evolution of Greek society.

*Assistant Professor of the University of Pafos. He is the author of the book "Sustainable Entrepreneurship", which he has co-authored with N. Apostolopoulos, T. Liargova and G. Zaiaris. Stamatis 

EU Actually

Meloni eyes EU comeback

N. Peter KramerBy: N. Peter Kramer

After being isolated in EU top jobs talks, Italian Prime Minister Giorgia Meloni is now on track for a comeback in Brussels

View 04/2021 2021 Digital edition

Magazine

Current Issue

04/2021 2021

View past issues
Subscribe
Advertise
Digital edition

Europe

EU hard-right parties to back von der Leyen after ‘intense’ meeting

EU hard-right parties to back von der Leyen after ‘intense’ meeting

On Tuesday morning, the ECR group met with von der Leyen two days before a crucial vote in the EU House that will determine whether she will be re-elected at the EU Commission’s helm

Business

Family businesses might come to dominate the business world

Family businesses might come to dominate the business world

In the ever-evolving economic landscape, family businesses may often be seen as standing as unassuming beacons of resilience and endurance

MARKET INDICES

Powered by Investing.com
All contents © Copyright EMG Strategic Consulting Ltd. 1997-2024. All Rights Reserved   |   Home Page  |   Disclaimer  |   Website by Theratron