According to the Bank of Greece, a decrease in the deficit of the balance of goods is accounted for by a larger drop in imports than in exports.
Exports declined by 14.4% at current prices (‑5.4% at constant prices) and imports fell by 14.8% at current prices (-4.4% at constant prices). More specifically, non-oil exports of goods decreased by 5.4% at current prices (-7.1% at constant prices), whereas non-oil imports of goods dropped by 1.1% (-1.9% at constant prices).
An increase in the surplus of the services balance is due to an improvement in the travel balance and, to a lesser extent, in the other services balance, while the transport balance deteriorated. Non-residents’ arrivals rose by 15.8% and the relevant receipts increased by 15.1% compared with July 2022.
The primary income account deficit almost doubled year-on-year, mainly owing to higher interest, dividend and profit payments. The secondary income account recorded a deficit, against a surplus in July 2022, because the general government registered net payments instead of net receipts.
In January-July 2023, the current account deficit decreased by €3.6 billion year-on-year to stand at €7.0 billion.
A decline in the deficit of the balance of goods is accounted for by a larger drop in imports than in exports. Exports fell by 2.9% at current prices (up by 1.3% at constant prices), whereas imports declined by 8.3% (-2.2% at constant prices). Specifically, at current prices non-oil exports of goods rose by 3.5%, while the corresponding imports decreased by 1.4% (‑1.9% and -3.7% at constant prices, respectively).
An increase in the services surplus is attributed to an improvement primarily in the travel balance and, secondarily, in the other services balance, which was partly offset by a deterioration in the transport balance. Non-residents’ arrivals grew by 21.9% and the relevant receipts increased by 20.2% year-on-year.
The primary income account registered a deficit, against a surplus in the corresponding period of 2022, due to an increase in net interest, dividend and profit payments, which was partly offset by a rise in net receipts from other primary income. The surplus of the secondary income account more than doubled year-on-year, owing to higher net receipts mainly in the general government balance and, to a lesser extent, in the other sectors of the economy excluding general government.
Capital account
In July 2023, the capital account showed a small deficit of €39.8 million, against a surplus in July 2022, mainly due to a decrease in general government receipts.
In the January-July 2023 period, the capital account surplus declined year-on-year and stood at €1.9 billion, owing to lower net receipts in the general government balance.
Combined current and capital account
In July 2023, the surplus of the combined current and capital account (corresponding to the economy’s external financing requirements) dropped to €787.7 million.
In January-July 2023, the deficit of the combined current and capital account declined significantly year-on-year and amounted to €5.2 billion.
Financial account
In July 2023, under direct investment, residents’ external assets fell by €373.1 million, while residents’ external liabilities rose by €599.7 million, without any remarkable transactions.
Under portfolio investment, a decrease in residents’ external assets is almost exclusively due to a decline of €675.0 million in their holdings of foreign bonds and Treasury bills. An increase in their liabilities is mainly due to a rise of €2.2 billion in non-residents’ holdings of Greek bonds and Treasury bills.
Under other investment, a drop in residents’ external assets is mostly due to a decline of €1.3 billion in residents’ deposit and repo holdings abroad and, to a lesser extent, a decrease of €127.9 million in loans extended to non-residents, which were partly offset by a €650.0 million statistical adjustment associated with the issuance of banknotes. A decline in their liabilities reflects primarily a decrease of €5.6 billion in non-residents’ deposit and repo holdings in Greece (the TARGET account included) and, secondarily, a decline of €481.0 million in the outstanding debt to non-residents, which were offset to a degree by a €650.0 million statistical adjustment related to the issuance of banknotes.
In the January-July 2023 period, under direct investment, residents’ external assets increased by €318.0 million and residents’ external liabilities, which represent non-residents’ direct investment in Greece, rose by €2.6 billion.
Under portfolio investment, a rise in residents’ external assets is almost exclusively due to an increase of €5.1 billion in residents’ holdings of foreign bonds and Treasury bills. An increase in their liabilities is mainly due to a rise of €5.3 billion in non-residents’ holdings of Greek bonds and Treasury bills.
Under other investment, a decline in residents’ external assets stems from a €4.4 billion decrease in residents’ deposit and repo holdings abroad and, to a lesser degree, from a €342.4 million drop in loans extended to non-residents by domestic financial institutions, which were partly offset by a €2.4 billion statistical adjustment associated with the issuance of banknotes. A decline in their liabilities reflects a decrease of €1.7 billion in non-residents’ deposit and repo holdings in Greece (the TARGET account included), as well as a decline of €776.8 million in the outstanding debt to non-residents, which were mostly offset by a €2.4 billion statistical adjustment related to the issuance of banknotes.
At end-July 2023, Greece’s reserve assets stood at €12.2 billion, compared with €11.0 billion at end-July 2022.
