BUSINESS

Account deficit keeps dropping

Greece?s current account deficit declined by a remarkable 40.3 percent on an annual basis in the year?s first four months, while foreign direct investment also reversed its decline to post an increase, according to Bank of Greece data released on Friday.

The account deficit fell by 3.8 billion euros to 5.6 billion, while the trade deficit shrank by 2.5 billion year-on-year, due to the decline in the trade deficit, that does not include fuel and ships, by 1.25 billion euros (or 28.9 percent) and the slashing of net payment for ship acquisition by 737 million euros. Export receipts registered a 5.8 percent increase.

FDI posted a net inflow of 77 million euros in the year to April, against a net outpouring of 703 million euros in the same period last year, BoG data showed.

Tourism receipts dropped by a disappointing 12.2 percent on a yearly basis, or about 100 million euros, after the 9.8 percent decline in foreign tourist arrivals.

In April alone, tourism receipts fell by 8.4 percent and foreign tourist arrivals by 6.5 percent from April 2011.

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