Enhanced image shows the country’s Current Account in the five months January – May 2023as the deficit decreased by 3.5 billion euros compared to last year, to 7.2 billion euros.

This development according to data from the Bank of Greecereflects her reduction of the goods balance deficitwhich is due to the increase in exports with a simultaneous decrease in imports. The exports increased by 5.5% at current prices (5.5% at constant prices), while the imports recorded a decrease of 4.5% (-0.9% at constant prices).

In particular, at current prices exports of non-fuel goods increased by 6.7%; while corresponding imports slightly down by 1.2% (0.2% and -4.1% at constant prices respectively).

THE improving the balance of services surplus due to primarily improving the travel balance and secondarily of the balance of other serviceswhich was partially offset by the deterioration of the transport balance. Arrivals of non-resident travellers increased by 32.9% and the related receipts by 30.7% compared to the corresponding period of 2022.

The capital account surplus increased compared to the same period in 2022 and amounted to 1.9 billion eurosmainly due to the recording of net receipts against net payments in the other, excluding general government, sectors of the economy and, to a lesser extent, due to the increase in net receipts in the general government sector.

The overall current and capital account deficitwhich corresponds to the financing needs of the economy from abroad, decreased significantly compared to the corresponding period of 2022 and amounted to 5.3 billion Euros.

In the direct investment category, the residents’ claims against the outside world increased by 703.4 million euros and the liabilities of residents vis-a-vis abroad, which correspond to direct investments of non-residents in Greece, recorded an increase of 1.6 billion euros.

In portfolio investments, the increase in residents’ foreign claims is almost entirely due to the increase of 4.2 billion euros of placements of residents in foreign bonds and interest-bearing bills. The increase in their obligations mainly reflects the €2.4 billion increase in non-residents’ positions in Greek bonds and interest-bearing notes.

In the category of other investments, the decrease in residents’ claims against abroad is due to the decrease of 2.6 billion euros in resident placements in deposits and repos abroad and, to a lesser extent, in the decrease of EUR 169.0 million in the granting of loans to non-residents by domestic financial institutionspartially offset by the statistical adjustment linked to the issuance of banknotes (by 1.3 billion euros). The increase in their liabilities reflects a €2.9bn rise in non-resident deposits and repos in Greece (including the TARGET account), but also the statistical adjustment linked to the issuance of banknotes (by 1.3 billion euros).