In November 2023, the current account deficit decreased by €604.7 million year-on-year to stand at €3.3 billion.
Τhe goods deficit narrowed as imports fell more than exports. At current prices, exports declined by 11.4% (‑7.3% at constant prices) and imports fell by 16.8% (‑6.6% at constant prices). More specifically, non-oil goods exports at current prices fell by 8.5% (‑10.4% at constant prices), whereas the corresponding imports rose marginally by 0.3% (1.0% at constant prices).
The services surplus widened. This development is attributed mostly to an improvement in the transport balance, and, to a lesser extent, the balance of travel services, which was partly offset by a deterioration in the other services balance. Compared with November 2022, non-residents’ arrivals rose by 27.5% and the relevant receipts rose by 18.9%.
The deficit of the primary income account virtually doubled year-on-year, mainly driven by an increase in net interest, dividend and profit payments. The deficit of the secondary income account also rose, on the back of higher general government net payments.
In January-November 2023, the current account deficit decreased by €6.6 billion year-on-year to stand at €11.9 billion.
The goods deficit shrank reflecting a larger drop in imports than exports. At current prices, exports fell by 7.0% (‑2.8% at constant prices) and imports dropped by 12.1% (‑4.2% at constant prices). More specifically, non-oil goods exports at current prices edged down by 1.2%, while the corresponding imports decreased by 2.2% (‑5.2% and ‑3.5%, at constant prices, respectively).
The services surplus widened due to an improvement in, primarily, the balance of travel services and, secondarily, the other services balance, which was partly offset by a deterioration in the transport balance. Non-residents’ arrivals grew by 17.3% year-on-year and the relevant receipts increased by 15.4%.
The deficit of the primary income account deteriorated markedly relative to the same period of 2022, driven by an increase in net interest, dividend and profit payments. The secondary income account recorded a surplus, against a deficit in the same period of 2022, mainly due to a shift from net receipts to net payments in general government but also, to a lesser extent, due to higher net receipts in the other sectors of the economy excluding general government.
Capital account
In November 2023, the capital account showed a deficit of €148.6 million, against a surplus in the same month of 2022, as both the general government and the other sectors of the economy registered net payments instead of net receipts.
In January-November 2023, the capital account surplus narrowed year-on-year to stand at €1.8 billion, primarily due to a shift from net payments to net receipts in the other sectors of the economy excluding general government.
Combined current and capital account
In November 2023, the deficit of the combined current and capital account (corresponding to the economy’s external financing requirements) decreased to stand at €3.5 billion.
In January-November 2023, the deficit of the combined current and capital account declined significantly year-on-year to stand at €10.1 billion.
Financial account
In November 2023, under direct investment, residents’ external assets grew by €680.1 million and residents’ external liabilities increased by €503.1 million, without any remarkable transactions.
Under portfolio investment, a decrease in residents’ external assets is almost exclusively due to a decline of €1.9 billion in their holdings of foreign bonds and Treasury bills. A rise in residents’ external liabilities resulted from non-residents’ holdings of Greek equities, which rose by €1.5 billion, and, to a lesser extent, from non-residents’ holdings of Greek bonds and Treasury bills, which grew by €140.0 million.
Under other investment, an increase in residents’ external assets is stemming from a €804.0 million statistical adjustment associated with the issuance of banknotes, which was partly offset by a decrease of €699.0 million in residents’ deposit and repo holdings abroad. An increase in residents’ external liabilities is associated with the €804.0 million statistical adjustment with regard to the issuance of banknotes, which was offset to some extent by a €324.4 million decrease in outstanding debt to non‑residents, and, to a lesser extent, by a €301.0 million drop in non-residents’ deposit and repo holdings in Greece (the TARGET account included).
In January-November 2023, under direct investment, residents’ external assets increased by €3.5 billion and residents’ external liabilities, which represent non-residents’ direct investment in Greece, rose by €4.6 billion.
Under portfolio investment, a rise in residents’ external assets is almost exclusively due to an increase of €2.9 billion in residents’ holdings of foreign bonds and Treasury bills. An increase in residents’ external liabilities is due primarily to a rise of €4.3 billion in non-residents’ holdings of Greek bonds and Treasury bills and secondarily to a €1.3 billion increase in non-residents’ holdings of Greek equities.
Under other investment, a drop in residents’ external assets is attributed to a decline of €7.2 billion in residents’ deposit and repo holdings abroad, which was partly offset by a €5.0 billion statistical adjustment associated with the issuance of banknotes, and, to a lesser extent, by the €494.7 million rise in loans extended to non‑residents by domestic financial institutions. An increase in residents’ external liabilities is associated with the €5.0 billion statistical adjustment with regard to the issuance of banknotes, which was partly offset by a decline of €1.9 billion in the outstanding debt to non‑residents, and, to a lesser extent, by a drop of €1.1 billion in non-residents’ deposit and repo holdings in Greece (the TARGET account included).
At end-November 2023, Greece’s reserve assets stood at €12.3 billion, compared with €11.1 billion at end-November 2022.
