IOBE: Greek Shipping Sector Pillar of the Economy, Contributes 7.9% to GDP

Photo source: Greek shipowners association.

The Greek shipping sector is one of the strongest drivers of the economy and a leader globally, contributing 7.9 percent to the country’s GDP, found a study presented this week by the Foundation for Economic & Industrial Research (IOBE).

Study findings reveal that Greece’s shipping sector maintains its leading position globally contributing to transportation, trade and logistics industries while maintaining the largest share of the gross value added (GVA) of the Greek economy compared to other EU states – 3.1 percent, compared to 0.2 percent on average in the EU.

In the last decade (2012-2022), maritime transport abroad generated 148.3 billion euros.

Photo source: Greek shipowners association.

Other key takeaways of the IOBE study, which was funded by the Aikaterini Laskaridis Foundation, include:

– the sector employs approximately 45.9 thousand people with the overall impact across industries reaching 86.3 thousand full-time jobs. Data shows a decrease in the entry of new seafarers and limited participation of women seafarers

– taking into account the multiplier effects in other sectors of the economy, the overall impact of shipping on Greece’s GDP came to 14.1 billion euros per year (average for the period 2018-2021) which corresponds to 7.9 percent of GDP

– public revenues grow by approximately 1.9 billion euros from shipping directly or indirectly from multiplier effects.

On the downside, however, the IOBE study found that despite Greece’s dominance, the Greek registry (Greek flag) is becoming less attractive due to the limited supply of seafarers. Indicatively, the Greek flag lost 25 percent of its strength.

Key risks identified by the study include achieving carbon neutrality by 2050, the integration of new environmentally-friendly fuels, the use of newer smart technologies, taxation, and the need for financing options for investments.