Impressive drop in current account deficit by September

The decline in the current account deficit by 76.5 percent from January to September, compared with the same period in 2011 has been the most impressive element in the Greek economy this year, as it has come down from 14.7 billion euros to 3.4 billion, according official data by the Bank of Greece.

This means that the difference between exports and imports has shrunk from 7 percent of gross domestic product to just 1.7 percent, and it is certain it will beat the budget target for a 6.9 percent of GDP deficit. In fact September showed a surplus of 774.6 million euros, against a deficit of 1 billion euros in September 2011.

Credit Suisse notes that this development illustrates the deep recession on the one hand, but on the other shows that the streamlining program is being implemented and as far as strengthening the competitiveness of Greek economy is concerned, is bearing fruit, as Greek products are becoming ever more competitive.

This decline in the deficit has been achieved despite the drop in tourism and shipping caused by the crisis. Tourism revenues came to 9 billion euros from 9.3 billion last year, and shipping intakes dropped to 10.1 billion from 10.5 billion.

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