Thessaloniki - Economy

Economy

Thessaloniki rose to economic prominence as a major economic hub in the Balkans during the years of the Roman Empire. The Pax Romana and the city's strategic position allowed for the facilitation of trade between Rome and Byzantium (later Constantinople and now Istanbul) through Thessaloniki by means of the Via Egnatia. The Via Egnatia also functioned as an important line of communication between the Roman Empire and the nations of Asia, particularly in relation to the Silk Road. With the partition of the Roman Empire into East(Byzantine) and West, Thessaloniki became the second-largest city of the Eastern Roman Empire after New Rome (Constantinople) in terms of economic might. Under the Empire, Thessaloniki was the largest port in the Balkans. As the city passed from Byzantium to the Republic of Venice in 1423, it was subsequently conquered by the Ottoman Empire. Under Ottoman rule the city retained its position as the most important trading hub in the Balkans. Manufacturing, shipping and trade were the most important components of the city's economy during the Ottoman period, and the majority of the city's trade at the time was controlled by ethnic Greeks.

Historically important industries for the economy of Thessaloniki included tobacco (in 1946 35% of all tobacco companies in Greece were headquartered in the city, and 44% in 1979) and banking (in Ottoman years Thessaloniki was a major center for investment from western Europe, with the Bank of Thessaloniki (French: Banque de Salonique) having a capital of 20 million French francs in 1909).