The cooperation between the agri-food sector and the tourism industry, especially catering, is crucial for strengthening the Greek economy. In its recent analysis, the Center for Planning and Economic Research (KEPE) emphasizes the need to supply restaurants and hotels with locally sourced products. This initiative will not only support local producers but also contribute to the development of local economies.
The importance of collaboration in the market
The increase in demand for local products is expected to bring positive developments such as increased production and the development of processing at the local level. The utilization of cultivable lands that currently remain unexploited is also a crucial step. This cooperation will create new jobs, contributing to the retention of young people in the countryside and the revitalization of rural communities.
According to the analysis of KEPE, the necessary reform of the productive model of the Greek economy is imperative. Greece, although it has rich agricultural production, is falling short of the expected increase in exports. New investments , and mainly foreign direct investments, are necessary to strengthen export capacity.
Agri-food performance and prospects
2020 saw the first trade surplus in the agri-food sector in 36 years, supported by two main factors. The first is the sector's resilience during the economic crisis, where the deficit was significantly reduced, reaching from 3 billion euros in 2008 to around 500 million before the COVID-19 pandemic.
The second factor contributing to the increase in the surplus was the restrictions imposed by the pandemic, which led to a decrease in imports due to the reduced tourist flow. Although the data remained similar in 2021, in 2022 the explosive growth of tourism contributed to a reversal of the situation, resulting in an increase in imports and the temporary emergence of a trade deficit.
Notable is the rise in olive oil prices, which brought back the trade surplus in 2023. However, forecasts show that in 2024 the surplus will be significantly reduced. The continuous increase in tourism, combined with the growing domestic demand, leads to a surge in imports of agri-food products. In fact, for 2025, a 10% increase in imports is expected, while exports will increase by only 6,6%, resulting in the previous decline in the trade surplus turning into a deficit in 2025 of 293 million euros.
## TechNoid.gr's opinion
The need for cooperation between the agri-food and tourism sectors is a development that could offer multiple benefits to the Greek economy. This strategy could prove decisive in strengthening the sustainability of local producers, while, at the same time, creating conditions for the development of the tourism sector. In the current situation, it seems that Greek businesses need to focus on innovative approaches that will allow them to better exploit their potential. It will be interesting to see how the market will evolve in the coming years and whether the necessary reforms will be achieved.
