A decrease of 7.1 billion euros, the deficit of the current account showed in the 12th month of 2023, compared to 2022, resulting in it reaching 14.1 billion euros (from 21.2 billion euros the previous year), i.e. at 6.3% of the country’s GDP.

This development reflects the improvement in the goods, services and secondary income balances, which was partially offset by the deterioration in the primary income balance.

In more detail, the goods balance deficit narrowed, as the decrease in imports exceeded that of exports. Exports decreased by 8.0% (-4.1% at constant prices) and imports by 12.3% (-4.6% at constant prices). In particular, exports of non-fuel goods decreased by 2.7%, while the corresponding imports decreased by 2.8% (-6.5% and -4.0% at constant prices respectively).

The surplus in the services balance widened, primarily due to an improvement in the travel balance and secondarily in the other services balance, which was partially offset by a deterioration in the transport balance. Compared to 2022, non-resident traveler arrivals increased by 17.6% and related receipts by 15.7%.

The deficit in the primary income balance worsened significantly over 2022, due to the increase in net payments for interest, dividends and profits. The balance of secondary income showed a surplus against a deficit in 2022, mainly due to the recording of net receipts against net payments in the general government sector and, to a lesser extent, due to the increase in net receipts in the non-general government sectors of the economy..

In 2023, the capital balance surplus decreased compared to 2022 and amounted to 2.7 billion euros, due to the recording of net payments, against net receipts, in the other, excluding general government, sectors of the economy.

The deficit of the total current account and capital balance – which corresponds to the economy’s needs for financing from abroad – decreased significantly compared to 2022 (by 6.7 billion euros) and amounted to 11.5 billion euros.

In the category of direct investments, flows of 3.2 billion euros were recorded in the claims of residents vis-a-vis abroad and in the liabilities of residents vis-a-vis abroad, which correspond to direct investments of non-residents in Greece, flows of 4.5 billion euros were recorded .

In portfolio investments, the increase in the claims of residents against abroad is almost entirely due to the increase of 2.8 billion euros in placements of residents in bonds and interest-bearing bills abroad. The increase in their liabilities mainly reflects the €4.1 billion increase in non-residents’ positions in Greek bonds and interest-bearing notes and secondarily the €1.5 billion increase in their positions in Greek stocks.

In the category of other investments, the decrease in the claims of residents vis-a-vis abroad is due to the decrease of 7.1 billion euros in placements of residents in deposits and repos abroad, which was mainly offset by the statistical adjustment linked to the issuance of banknotes ( by €5.1 billion) and, to a lesser extent, by the increase of €457.3 million in lending to non-residents by domestic financial institutions.