Media reports Greece’s economy at risk due to escalating tensions in Middle East
Date
10/13/2024 4:39:53 AM
(MENAFN) According to local media reports on Friday, Greece’s Economy is at risk due to escalating tensions in the Middle East, as highlighted by major credit rating agency Fitch. The agency pointed out that Greece's net oil imports from the region constitute 6.9 percent of its GDP, with energy making up 8.2 percent of the Consumer Price Index basket. Fitch emphasized that Greece has the highest dependence on Middle Eastern oil among developed economies, which adds to its vulnerability, particularly in light of rising geopolitical tensions.
Additionally, Greece's reliance on exports to the Middle East and North African region further heightens its economic risk, as these markets play a critical role in its trade dynamics. The agency noted that Greece's substantial public debt exacerbates its susceptibility to economic disturbances that may arise from fluctuations in oil supply and prices, making the nation particularly sensitive to international market shifts.
Fitch also identified Greece as one of the top ten developed economies most at risk of potential disruptions in maritime transport through the Strait of Hormuz, a vital chokepoint for global oil shipments. Any escalation of conflict between Israel and Iran could have severe repercussions not just for Greece but also for economies throughout the entire region, underscoring the interconnectedness of global economic stability and regional security dynamics.
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