According to the Bank of Greece, a drop in the deficit of the balance of goods is accounted for by a larger increase in exports than in imports. Exports grew by 6.1% at current prices (10.1% at constant prices) and imports rose by 2.9% at current prices (4.1% at constant prices). Specifically, non-oil exports of goods increased by 13.9% at current prices (7.2% at constant prices) and non-oil imports of goods grew by 1.1% at current prices (-2.2% at constant prices).
A small increase in the surplus of the services balance is due to an improvement in the other services balance, as well as in the travel balance, while the transport balance deteriorated. Non-residents’ arrivals rose by 60.8% and the relevant receipts by 45.6% compared with March 2022.
The deficit of the primary income account widened year-on-year, owing to a shift from net receipts to net payments of interest, dividends and profits. The secondary income account recorded a surplus, against a deficit in March 2022, owing to a shift from net payments to net receipts in the general government sector.[1]
In the first quarter of 2023, the current account deficit contracted by €3.1 billion year-on-year, to €3.9 billion.
A drop in the deficit of the balance of goods is accounted for by a larger increase in exports than in imports. Exports grew by 17.7% at current prices (10.3% at constant prices) and imports registered a small increase of 1.2% at current prices (0.8% at constant prices). Specifically, non-oil exports and imports of goods grew by 12.7% and 0.9%, respectively, at current prices (2.7% and -3.1% at constant prices).
A small decrease in the services surplus is attributable to a deterioration in the transport balance, which was largely offset by an improvement in the travel and other services balances. Non-residents’ arrivals grew by 74.7% and the relevant receipts by 63.8% year-on-year.
The surplus of the primary income account was halved year-on-year, as a result of higher net interest, dividend and profit payments, which were partly offset by an increase in net receipts from other primary income. The surplus of the secondary income account widened year-on-year, chiefly because the general government balance registered net receipts instead of net payments.
Capital account
In March 2023, the capital account surplus increased relative to March 2022 and stood at €206.9 million, mainly as a result of higher net receipts in the other sectors of the economy excluding general government. In the first quarter of 2023, the capital account registered a surplus of €1.9 billion, against a deficit in the same period of 2022, mainly owing to a rise in general government net receipts.
Combined current and capital account
In March 2023, the deficit of the combined current and capital account (corresponding to the economy’s external financing requirements) decreased and stood at €2.2 billion. In the first quarter of 2023, the combined current and capital account deficit contracted by €5.2 billion year-on-year, to €1.9 billion.
Financial account
In March 2023, under direct investment, residents’ external assets increased by €42.3 million and residents’ external liabilities rose by €382.4 million, without any remarkable transactions.
Under portfolio investment, a decrease in residents’ external assets is almost exclusively due to a decline of €687.0 million in their holdings of foreign bonds and Treasury bills. A decline in their liabilities is due to a decrease of €441.0 million in non-residents’ holdings of Greek bonds and Treasury bills.
Under other investment, residents’ external assets dropped due to a decline of €817.0 million in residents’ deposit and repo holdings abroad, which was partly offset by a €480.0 million statistical adjustment associated with the issuance of banknotes. An increase in their liabilities reflects chiefly a rise of €1.3 billion in non-residents’ deposit and repo holdings in Greece (the TARGET account included), as well as a €480.0 million statistical adjustment related to the issuance of banknotes, which were partly offset by a drop of €187.4 million in loans extended by non-residents.
In the first quarter of 2023, under direct investment, residents’ external assets increased by €171.7 million and residents’ external liabilities, which represent non-residents’ direct investment in Greece, rose by €910.2 million.
Under portfolio investment, a rise in residents’ external assets is almost exclusively due to an increase of €2.4 billion in residents’ holdings of foreign bonds and Treasury bills. A rise in their liabilities is due to an increase of €659.0 million in non-residents’ holdings of Greek bonds and Treasury bills and a €254.0 million rise in non-residents’ Greek equity holdings.
Under other investment, a drop in residents’ external assets is due to a decline of €987.0 million in residents’ deposit and repo holdings abroad and, to a lesser extent, a decrease of €262.1 million in loans extended to non-residents by domestic financial institutions, which was partly offset by a €966.0 million statistical adjustment associated with the issuance of banknotes. An increase in residents’ external liabilities reflects chiefly a rise of €1.9 billion in non-residents’ deposit and repo holdings in Greece (the TARGET account included) and a €966.0 million statistical adjustment associated with the issuance of banknotes, which were partly offset by a decline of €339.6 million in the outstanding debt to non-residents.
At end-March 2023, Greece’s reserve assets stood at €12.2 billion, compared with €13.1 billion at end-March 2022.
