Current account deficit declining in 2023
Greece’s current account deficit recorded an increase of 120.7 million euros year‑on‑year and stood at €1.8 billion in April, but fell €3 billion to stand at €5.6 billion in the January-April period, the Bank of Greece said on Tuesday.
The decrease in the deficit of the balance of goods is accounted for by the larger drop in imports than in exports. Exports decreased by 3.9% at current prices (1.7% at constant prices) and imports fell by 11.9% at current prices (‑4.1% at constant prices). Specifically, non‑oil exports of goods decreased by 4.1% at current prices (‑7.2% at constant prices) and non‑oil imports of goods dropped by 4.0% at current prices (‑6.1% at constant prices).
The rise in the surplus of the services balance was thanks to an improvement in the other services balance, as well as in the travel balance, while the transport balance deteriorated. Non‑resident arrivals rose by 30% and the relevant receipts by 19.9% compared with April 2022.
The primary income account deficit grew year‑on‑year, owing to higher net interest, dividend and profit payments. The secondary income account recorded a deficit, against a surplus in April 2022, mainly because the general government registered net payments instead of net receipts.
A drop in the deficit of the balance of goods in the January-April period is a combined result of an increase in exports and a decrease in imports. Exports grew by 12% at current prices (8.3% at constant prices) and imports fell by 2.1% at current prices (‑0.3% at constant prices). Specifically, at current prices non‑oil exports of goods increased by 8.4%, while the corresponding imports decreased slightly by 0.3% (0.3% and ‑3.8% at constant prices respectively).
A small increase in the services surplus was thanks to an improvement in the travel balance and in the other services balance, which was mostly offset by a deterioration in the transport balance. Non‑resident arrivals in Greece grew by 52.5% and the relevant receipts by 38% year‑on‑year.
The surplus of the primary income account decreased year‑on‑year, as a result of higher net interest, dividend and profit payments, which were partly offset by an increase in net receipts of other primary income. The surplus of the secondary income account widened year‑on‑year, chiefly due to higher general government net receipts.
