Thessaloniki’s Export Growth Highlights Economic Momentum
The Greek economy continues to show remarkable resilience, with rising exports and investment counterbalancing global economic uncertainties. Recent data from the Hellenic Statistical Authority and the Institute of Export Research and Studies of the Exporters’ Association reveals that the export sector in Thessaloniki has maintained strong performance in recent years.
In 2023, Central Macedonia’s exports reached €7.9 billion, with Thessaloniki-based companies contributing €5.6 billion. Oil products led the export categories, amounting to €1.77 billion. Key importers of Thessaloniki’s goods include North Macedonia, Bulgaria, Germany, Turkey, and Cyprus. However, despite the upward trend in exports, Greece’s trade balance remains in deficit, with Thessaloniki’s imports totaling €9.12 billion in 2023.
Strong Macroeconomic Performance in 2024
According to the March 2025 Quarterly Report by the Budget Office of the Hellenic Parliament, Greece has maintained a stable economic and political environment. The fourth quarter of 2024 saw robust growth in macroeconomic and fiscal indicators, driven by increased investment, productivity gains, and accelerated structural reforms.
The Greek economy expanded by 2.3% in 2024—more than double the Eurozone average—with a notable 2.6% year-on-year growth in Q4. Key contributors to this growth included:
- A 3.6% rise in exports (5.9% in services, 1.6% in goods).
- A 9.0% increase in capital expenditures.
- Private consumption growth of 0.8% in Q4, maintaining an annual rise of 2.1%.
However, challenges persist, including a 3.4% decline in public consumption and a 2.4% increase in imports, which slightly dampened overall growth.
Credit Rating Upgrades Boost Investor Confidence
Greece’s economic recovery has been further validated by Moody’s upgrade of its credit rating to investment grade, following similar moves by Scope and DBRS. This milestone improves Greece’s access to international financing, lowers borrowing costs, and strengthens investor confidence.
Despite these gains, the report highlights a worsening current account balance in 2024, underscoring the need to bolster high-value-added export sectors and deepen structural reforms.
Global Risks and European Responses
The global economic landscape remains fraught with uncertainty due to escalating U.S.-EU-China trade tensions, geopolitical instability, and supply chain disruptions. Protectionist policies and tariffs threaten international trade, while inflationary pressures persist.
In response, the European Council has approved an €800 billion defense spending package over the next four years, partially funded by €150 billion in EU borrowing via the SAFE tool. Additionally, Germany’s historic decision to relax its debt brake—enabling a €500 billion fiscal expansion—could positively impact both the European and Greek economies.
Challenges for Greek Exporters
The report also examines potential risks from U.S. tariff policies on Greek steel and aluminum exports. Past experience shows that the 2018 tariffs (25% on steel, 10% on aluminum) negatively affected Greek steel exports to the U.S., while aluminum exports remained stable. The new tariffs could also disrupt Greek exports of intermediate goods used in EU products destined for the U.S. market.
Improved Tax Collection and Debt Reduction
Greece has made significant progress in tax compliance, with tax receivables falling to 0.8% in 2024—the lowest level since 2000. Total state arrears declined by 7% year-on-year to €106.3 billion, reflecting stronger enforcement despite pandemic-related setbacks.
Supporting Small and Medium-Sized Exporters
Enhancing the export capacity of micro and small enterprises (SMEs) remains a priority. In a recent meeting between the General Confederation of Professionals, Craftsmen and Merchants of Greece (GSEVEE) and Deputy Foreign Minister Tassos Chatzivasileiou, discussions focused on improving financial access and liquidity for SMEs to boost their competitiveness in international markets.
Sustaining Growth Amid Challenges
The Greek economy continues its upward trajectory, supported by export growth, investment inflows, and structural reforms. However, global trade tensions and domestic fiscal pressures necessitate continued vigilance. Reducing public debt, attracting foreign investment, and enhancing competitiveness remain critical for sustainable long-term growth.
With proactive policies and international cooperation, Greece is well-positioned to navigate economic headwinds and solidify its recovery in the years ahead.
