Greek current account surplus down in July

Greece's current account surplus fell by 135.2 million year-on-year to stand at 827.5 million in July, the Bank of Greece said on Wednesday.

The central bank, in a monthly report, said that a decrease in the deficit of the balance of goods is accounted for by a larger drop in imports than in exports. Exports declined by 14.4% at current prices (‑5.4% at constant prices) and imports fell by 14.8% at current prices (-4.4% at constant prices). More specifically, non-oil exports of goods decreased by 5.4% at current prices (-7.1% at constant prices), whereas non-oil imports of goods dropped by 1.1% (-1.9% at constant prices).

An increase in the surplus of the services balance is due to an improvement in the travel balance and, to a lesser extent, in the other services balance, while the transport balance deteriorated. Non-residents’ arrivals rose by 15.8% and the relevant receipts increased by 15.1% compared with July 2022.

The primary income account deficit almost doubled year-on-year, mainly owing to higher interest, dividend and profit payments. The secondary income account recorded a deficit, against a surplus in July 2022, because the general government registered net payments instead of net receipts.

In the January-July period, the current account deficit decreased by 3.6 billion year-on-year to stand at 7.0 billion euros. A decline in the deficit of the balance of goods is accounted for by a larger drop in imports than in exports. Exports fell by 2.9% at current prices (up by 1.3% at constant prices), whereas imports declined by 8.3% (-2.2% at constant prices).

Specifically, at current prices non-oil exports of goods rose by 3.5%, while the corresponding imports decreased by 1.4% (‑1.9% and -3.7% at constant prices, respectively). An increase in the services surplus is attributed to an improvement primarily in the travel balance and, secondarily, in the other services balance, which was partly offset by a deterioration in the transport balance. Non-residents’ arrivals grew by 21.9% and the relevant receipts increased by 20.2% year-on-year.

The primary income account registered a deficit, against a surplus in the corresponding period of 2022, due to an increase in net interest, dividend and profit payments, which was partly offset by a rise in net receipts from other primary income. The surplus of the secondary income account more than doubled year-on-year, owing to higher net receipts mainly in the general government balance and, to a lesser extent, in the other sectors of the economy excluding general government.

In July, the capital account showed a small deficit of 39.8 million, against a surplus in July 2022, mainly due to a decrease in general government receipts.

In the seven-month period, the capital account surplus declined year-on-year and stood at 1.9 billion, owing to lower net receipts in the general government balance.

In July, under direct investment, residents’ external assets fell by 373.1 million, while residents’ external liabilities rose by € 599.7 million, without any remarkable transactions.

In the seven-month period, under direct investment, residents’ external assets increased by 318.0 million and residents’ external liabilities, which represent non-residents’ direct investment in Greece, rose by 2.6 billion. At the end of July 2023, Greece’s reserve assets stood at 12.2 billion euros, compared with 11.0 billion at end-July 2022.