In June 2024, the current account recorded a surplus, compared with a deficit in the corresponding month of 2023, due to the improvement in the primary income balance and, to a lesser extent, the balance of goods and services, according to the Bank of Greece. At the same time, in the first half of 2024, the current account deficit increased compared to the same period in 2023, reaching EUR 8.8 billion, due to the deterioration of the goods balance and, to a lesser extent, the primary income balance, which was partially offset by an improvement mainly in the secondary income balance, but also in the services balance.

IN DETAIL:

In June 2024, the current account registered a surplus, against a deficit in June 2023, due to an improvement in the primary income account and, to a lesser extent, in the balances of goods and services.

Due to a worsening in the balance of goods and, to a lesser extent, the primary income account in the first half of 2024, the current account deficit increased year over year. However, improvements in the secondary income account and the balance of services partially offset this trend.

Current account

In June 2024, the current account registered a surplus of €270.8 million, against a deficit in June 2023.

The goods deficit narrowed as exports increased and imports decreased. At current prices, goods exports grew by 3.3% (-2.0% at constant prices) and goods imports dropped by 1.4% (-3.1% at constant prices). More specifically, non-oil goods exports at current prices fell by 5.8% (-9.2% at constant prices) and the corresponding imports decreased by 1.5% (-1.8% at constant prices).

The surplus of the services balance increased as a result of an improvement in, primarily, the travel balance and, secondarily, the transport balance. Compared with June 2023, non-residents’ arrivals grew by 8.8% and the relevant receipts rose by 7.7%.

The deficit of the primary income account decreased year-on-year as net receipts from other primary income increased, while net interest, dividendsand profit payments dropped. The deficit of the secondary income account improved slightly compared with June 2023, owing to lower net payments in the other sectors of the economy, excluding general government.

In the first half of 2024, the current account deficit increased by €693.4 million year-on-year to stand at €8.8 billion.

The goods deficit grew as exports dropped while imports increased. At current prices, goods exports fell by 2.9% (5.9% at constant prices) and goods imports grew by 3.4% (3.8% at constant prices). More specifically, non-oil goods exports at current prices declined by 4.4%, while the corresponding imports increased by 4.0% (7.3% and 4.4% at constant prices, respectively).

The surplus of the services balance increased as a result of an improvement in, primarily, the travel balance and, secondarily, the transport balance. Compared with the first half of 2023, non-residents’ arrivals increased by 15.5% and the relevant receipts rose by 12.2%.

The deficit of the primary income account grew year-on-year, mainly owing to a decline in net receipts under other primary income. The surplus of the secondary income account almost doubled year-on-year, due to higher net receipts in the other sectors of the economy, excluding general government.

Capital account

In June 2024, the capital account showed a surplus of €76.2 million, against a deficit in June 2023, reflecting net receipts instead of net payments recorded in the other sectors of the economy, excluding general government.

In the first half of 2024, the capital account showed a deficit, against a surplus in the corresponding period of 2023, which came to €566.0 million, as a result of a decrease in general government net receipts and a shift from net receipts to net payments in the other sectors of the economy excluding general government.

Combined current and capital accounts

In June 2024, the combined current and capital account (corresponding to the economy’s external financing requirements) registered a surplus of €347.0 million, against a deficit in June 2023.

In the first half of 2024, the deficit of the combined current and capital account increased year-on-year and stood at €9.4 billion.

Financial account

In June 2024, direct investment saw net flows of €323.2 million under residents’ external assets and net flows of €520.7 million under residents’ external liabilities, without any notable transactions.

Under portfolio investment, a decrease in residents’ external assets is mainly due to a decline of €1.2 billion in their holdings of foreign bonds and Treasury bills. A decrease in their liabilities is mostly due to a decline of €441.0 million in non-residents’ holdings of Greek bonds and Treasury bills.

In other investment, residents' external assets went up because domestic financial institutions gave €470.0 million more loans to non-residents, there was a €452.0 million statistical adjustment for the printing of banknotes, and residents' deposit and repo holdings abroad went up by a smaller amount. An increase in residents’ external liabilities is mainly associated with a €452.0 million statistical adjustment with regard to the issuance of banknotes, which was offset, to a degree, by a €281.5 million decrease in residents’ outstanding debt to non-residents.

In the first half of 2024, direct investment showed a €885.4 million net flow under residents’ external assets and a €2.1 billion net flow under residents’ external liabilities, representing non-residents’ direct investment in Greece.

Under portfolio investment, a rise in residents’ external assets is mostly attributable to an increase of €4.0 billion in residents’ holdings of foreign bonds and Treasury bills. A rise in their liabilities is chiefly due to an increase of €5.9 billion in non-residents’ holdings of Greek bonds and Treasury bills and a rise of €1.6 billion in non-residents’ holdings of Greek equities.

There was a drop in residents' external assets due to a €4.9 billion drop in their deposit and repo holdings abroad. This was partly made up for by an increase of €879.9 million in loans given to non-residents and a statistical adjustment of €464.0 million related to the printing of banknotes. The amount of money that Greek residents owe to non-residents went down by €3.0 billion, which was partly balanced by an increase of €2.5 billion in non-residents' deposit and repo holdings in Greece (including the TARGET account) and a €464.0 million statistical adjustment related to the printing of banknotes.

At end of June 2024, Greece’s reserve assets stood at €13.3 billion, compared with €12.0 billion at end of June 2023.