It increased by 822.0 million euros in April the current account deficit, in relation to April 2023 and amounted to 2.7 billion euros, according to data from the Bank of Greece.

The deficit in the balance of goods widened, as the increase in imports exceeded that of exports. At current prices, exports rose by 11.8% (6.9% at constant prices) and imports rose by 21.4% (21.5% at constant prices). In particular, at current prices, exports of non-fuel goods increased by 15.5% (11.1% at constant prices), while imports of non-fuel goods increased by 23.3% (23.7% at constant prices).

The balance of services surplus recorded a small increase due toof improving the balance of travel services, which was partially offset by the reduction in the surplus primarily of the transport balance and secondarily of the other services balance. Compared to April 2023, non-resident traveler arrivals increased by 13.9% and related receipts by 15.9%.

The primary income balance deficit narrowed slightly compared to the corresponding month in 2023, reflecting a decrease in net payments for interest, dividends and profits, which was partially offset by a decrease in net receipts from other primary income. The deficit of the secondary income balance recorded a small increase compared to April 2023, as a result of the increase in net payments to the general government sector, which was to some extent offset by the recording of net receipts against net payments to the other non-general government , sectors of the economy.

An increase of 1.1 billion euros in the four months

In the period January-April 2024, the current account deficit increased by 1.1 billion euros compared to the first quarter of 2023 and stood at 6.8 billion euros.

The goods balance deficit increased, due to the simultaneous decrease in exports and increase in imports. At current prices, exports fell by 5.7% (7.2% at constant prices) and imports increased by 3.5% (6.2% at constant prices). In particular, at current prices, exports of goods without fuel showed a decrease of 3.5%, while the corresponding imports increased by 7.9% (6.0% and 8.7% at constant prices respectively).

The balance of services surplus widened, mainly due to the improvement in the travel balance and, to a lesser extent, the transport balance, offset to some extent by the reduction in the surplus of the other services balance. Compared to the first quarter of 2023, non-resident traveler arrivals increased by 20.0% and related receipts by 22.0%.

The balance of primary incomes recorded a deficit, compared to a surplus in the corresponding period of 2023, due to the decrease in net receipts from other primary incomes. The surplus of the secondary income balance increased compared to the corresponding period of 2023, due to the increase in net receipts in the other, except general government, sectors of the economy.

Deficit in the Capital Balance

In April 2024, the capital balance recorded a deficit, compared to a surplus in the corresponding month of 2023, which amounted to 115.3 million euros, mainly reflecting the recording of net payments, against net receipts, in the other, excluding general government, sectors of the economy..

In the period January-April 2024, the capital balance showed a deficit, compared to a surplus in the first quarter of 2023, which amounted to 540.2 million euros, on the one hand due to the reduction of net receipts in the general government sector and on the other hand due to the recording of net payments, against net receipts, in the other, apart from general government, sectors of the economy.

Total Current and Capital Balance

In April 2024, the deficit of the total balance of current transactions and capital (which corresponds to the needs of the economy for financing from abroad) increased compared to the corresponding month of 2023 and amounted to 2.8 billion euros.

In the period January-April 2024, the deficit of the total balance of current transactions and capital widened, in relation to the corresponding period of 2023, and amounted to 7.4 billion euros.

Balance of Financial Transactions

In April 2024, in the category of direct investments, net flows of 60.4 million euros were recorded in residents’ foreign claims and 316.9 million euros in residents’ liabilities, with no notable transactions.
In portfolio investments, the increase in residents’ foreign claims almost entirely reflects the €1.9 billion increase in their holdings of foreign bonds and interest-bearing bonds. The increase in their liabilities is mainly due to the increase of 79.0 million euros in the placements of non-residents in Greek bonds and interest-bearing bills.

In the category of other investments, a decrease was recorded in the claims of residents vis-a-vis abroad, due to a decrease of 1.5 billion euros in placements of residents in deposits and repos abroad, which was partially offset by the statistical adjustment linked to the issuance of banknotes (by 228.0 million euros) and the increase by 183.8 million euros in the granting of loans to non-residents by domestic financial institutions. The increase in their liabilities mainly reflects the €3.1 billion increase in non-resident placements in deposits and repos in Greece (including the TARGET account) and, to a lesser extent, the statistical adjustment linked to the issuance of banknotes (according to 228.0 million euros), which were offset, to a certain extent, by the reduction by 395.3 million euros of their loan obligations to non-residents.

In the period January-April 2024, in the category of direct investments, net flows of 503.7 million 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 by non-residents in Greece, net flows of 1.5 billion euros.

In portfolio investments, the increase in the claims of residents against abroad is almost entirely due to the increase of 3.9 billion euros in placements of residents in bonds and interest-bearing bills abroad. The increase in their liabilities mainly reflects the €3.7 billion increase in non-residents’ positions in Greek bonds and interest-bearing bills.

In the category of other investments, the reduction of residents’ demands vis-à-vis abroad is mainly due to the reduction by 4.1 billion euros of the placements of residents in deposits and repos abroad and, to a lesser extent, to the statistical adjustment linked to the issuance of banknotes (by 740.0 million euros), which offset to some extent by a €316.2 million increase in loans to non-residents. The reduction in their liabilities is related to the EUR 2.3 billion reduction in their loan liabilities to non-residents and, to a lesser extent, to the statistical adjustment related to the issuance of banknotes (by EUR 740.0 million), which were offset partly from the €2.2 billion increase in non-resident placements in deposits and repos in Greece (including the TARGET account).

At the end of April 2024, the country’s foreign exchange reserves amounted to 13.4 billion eurosagainst 12.0 billion euros at the end of April 2023.