On the occasion of the recent visit of the Amir of the State of Qatar HH Sheikh Tamim bin Hamad Al Thani to Greece and his meeting with the Greek Prime Minister Kyriakos Mitsotakis, during which, among other things, they discussed the strengthening of cooperation between the two countries in a number of areas with emphasis on the economy and investment, we present the latest figures (2022) concerning the trade relationship between Greece and Qatar.
Economic profile of each country
Greece and Qatar represent two distinct economic profiles. Greece, an EU member, has a diverse economy centered around services, particularly tourism and shipping, along with significant contributions from agriculture and manufacturing. Despite challenges such as economic recessions and high public debt, Greece has made strides in economic complexity and export growth, ranking 47th in the Economic Complexity Index (ECI) in 2022 (ECI 0.32) and 57th in total exports ($55.7B).1
On the other hand, Qatar’s economy is heavily reliant on its vast natural gas and oil reserves, making it one of the wealthiest countries per capita. Its economic strategy focuses on diversifying beyond hydrocarbons through investments in infrastructure, finance, and technology. In 2022, Qatar ranked 70th in the Economic Complexity Index (ECI -0.2), and 38th in total exports ($119B).
According to data from the World Bank,2 Greece’s GDP (nominal) in 2022 was $219 billion ($21,095 per capita), while Qatar’s GDP (nominal) in 2022 was $237 billion ($88,046 per capita). The article delves into the specifics of the trade exchanges between the two countries, highlighting key products and trends, and examining the broader economic context of both nations and the related challenges and opportunities.
Exports of each country to the other
According to the Observatory of Economic Complexity (OEC)3 Greece’s exports to Qatar reached $62.1M in 2022, while Qatar’s exports to Greece reached $49M during the same year. The top product that Greece exported to Qatar was building stone ($11.9M) while the top product that Qatar exported to Greece was Petroleum Gas ($18.2M).
Greece’s exports to Qatar: A diverse portfolio
Greece exported $62.1M to Qatar (table 1). The main products that Greece exported to Qatar are Building Stone ($11.9M), Refined Petroleum ($10.5M), and Other Oily Seeds ($3.08M). During the last 27 years the exports of Greece to Qatar have increased from $2.24M in 1995 to $62.1M in 2022. During 2022, Greece had a large net trade with Qatar in the exports of Stone and Glass ($13.6M), Mineral Products ($11.2M), and Machines ($6.25M).
Qatar’s Exports to Greece: Focused on petroleum gas and chemicals
Qatar exported $49M to Greece (Figure 2). The main products that Qatar exported to Greece were Petroleum Gas ($18.2M), Ethylene Polymers ($16.6M), and Ammonia ($10.6M). During the last 27 years the exports of Qatar to Greece have increased from $8.31k in 1995 to $49M in 2022. During 2022, Qatar had a large net trade with Greece in the exports of Mineral Products ($18.2M), Plastics and Rubbers ($16.8M), and Chemical Products ($11.3M).
Trade between Greece and Qatar over time
Figure 3 depicts the trade value between Greece and Qatar over time, from February 2010 to May 2021. The trade values for Greece are represented in yellow (Greek exports), while those for Qatar are shown in purple (Qatar’s exports).
The key observations are the following:
Trend over time: The trade values for both countries exhibit significant fluctuations over the period. Greece’s trade values show a generally increasing trend with considerable volatility.
Qatar’s trade dynamics: Qatar’s trade values display a significant drop around mid-2017, with fluctuations becoming more pronounced afterward. The trade value for Qatar sharply declines around 2018 and experiences a lot of variability with frequent peaks and troughs, particularly noticeable in 2019, and later on.
Greece’s trade dynamics: Greece’s trade value remains relatively stable with minor fluctuations, showing an upward trend. During the latest years, the values appear to stabilize with slight variations until 2021.
Impact of external factors: The sharp decline in Qatar’s trade around mid-2017 could be associated with the diplomatic crisis in the Gulf region, where several countries severed ties with Qatar, affecting its trade relationships.
Comparative analysis: The trade values for Greece appear more stable compared to the highly variable trade values for Qatar. Qatar’s trade experiences more severe and frequent fluctuations, indicating possible external economic or geopolitical impacts.
Difference in imports from Qatar and Greece, Worldwide
The map of Figure 4 shows whether countries import more from Greece or Qatar (in 2022). Each country is colored based on the difference in imports they receive from Greece and Qatar or the difference in the growth in imports.
- Countries colored in shades of blue and dark blue indicate higher imports from Greece compared to Qatar.
- Countries colored in shades of yellow and dark yellow indicate higher imports from Qatar compared to Greece.
The intensity of the color correlates with the magnitude of the difference in imports.
Key observations:
- In 2022, countries that imported more from Greece than Qatar were Bulgaria ($3.62B), Cyprus ($2.92B), and Germany ($3.45B). The top destination for Greece was Italy ($5.82B exports).
- In 2022, countries that imported more from Qatar than Greece were China ($21.1B), India ($17.4B), and Japan ($12B). The top destination for Qatar was China ($21.1B exports).
- Europe: Most European countries, including Germany, Italy, and Bulgaria, import significantly more from Greece. Greece’s geographical proximity and economic ties within the European Union likely contribute to this trend. Italy, as the top importer, underscores the strong trade relationship within the EU.
- Middle East and North Africa: This region is mixed, with some countries like Egypt importing more from Greece, while others like Saudi Arabia import more from Qatar.
- Asia: Major Asian economies, including China, India, and Japan, import substantially more from Qatar. This is primarily due to Qatar’s significant exports of liquefied natural gas (LNG) and other hydrocarbons. Qatar’s top importers, such as China and India, highlight the global demand for energy resources.
- Americas: The Americas show a mixed trend, with some countries like Brazil importing more from Qatar, while others like the USA show relatively balanced imports from both countries.
In general, the map visually encapsulates the trade dynamics between Greece and Qatar with different countries. It highlights Greece’s strong trade presence in Europe and Qatar’s dominance in energy exports to major Asian economies. The color gradient effectively demonstrates the magnitude of trade differences, providing a clear geographical representation of each country’s export influence in 2022.
Conclusion
The trade relationship between Greece and Qatar reflects the special economic characteristics of the two countries, with Greece exporting primarily manufactured goods, agricultural products, and services, while Qatar exports energy products. These dynamic fosters a complementary trade relationship, enabling both countries to benefit from each other’s economic strengths.
While Greece-Qatar trade relations are currently robust, the data and visual representations suggest a need for a strategic approach to further diversify and strengthen this economic partnership. With Greece’s GDP in 2022 approximately $220 billion and Qatar’s around $240 billion, there lies an opportunity to leverage Greece’s sophisticated export structure to introduce more value-added goods and services into the Qatari market. For Qatar, which ranks lower in economic complexity, the emphasis could be on utilizing its substantial fiscal resources to develop and acquire technological and innovative capabilities, thereby climbing up the value chain in its trade with Greece. Future collaborations should prioritize sustainability, innovation, and the exchange of expertise beyond goods, exploring opportunities in services and knowledge exchange. This approach could open new chapters in the economic narratives of both nations. By leveraging the strong foundation in goods trade, future strategies can build a more multifaceted economic relationship encompassing investment, services, and innovation.