The Trade Balance of Greece in the Euro Era

Abstract

The current article examines the trade balance of Greece in the Euro era, in general, and in particular within the Member States of the Euro Zone (EZ). It was found that in the Euro-era, the Greek trade balance has deteriorated in general and particularly within the Member States of the EZ, while losses in competitiveness of the Greek economy have been observed. The structure of production and foreign trade affect the trade deficit and competitiveness of the Greek economy. Moreover, the more rapid rates of inflation in Greece, compared with its trading partners, led to a revaluation of the real exchange rate in the country, affecting its export performance.