Tourism receipts in July were down by 4.2% compared to the same month last year, although arrivals increased by 4.1%. In particular, as the Bank of Greece data show, travel receipts in July stood at €4.031 billion, compared to €4.208 billion in July 2023.
However, tourism receipts for the January-July period were 5.6% higher compared to the same period in 2023, as they amounted to €10.95 billion (up from €10.37 billion last year), with non-resident traveler arrivals increasing by 11.2%.
Current account balance
More specifically, the Bank of Greece reported that the current account surplus fell by EUR 600.4 million in July 2024 compared to the same month in 2023, reaching EUR 246.2 million.
The goods deficit widened, due to a larger increase in imports than in exports. At current prices, exports of goods increased by 8.3% (5.9% at constant prices), while imports of goods increased by 8.4% (10.6% at constant prices). In particular, at current prices, exports of goods excluding fuel increased by 7.5% (4.8% at constant prices), while imports of goods excluding fuel increased by 13.6% (13.2% at constant prices).
The surplus of the services balance decreased due to the deterioration of the travel services balance first and the transport balance second, while the other services balance improved. Compared to July 2023, non-resident traveler arrivals increased by 4.1%, while related receipts decreased by 4.2%.
An increase in net payments for interest, dividends, and profits, partially offset by an increase in net receipts from other primary income, led to a wider deficit on the primary income balance when compared to the same month in 2023. The secondary income deficit recorded a small decline compared with July 2023, as a result of a decline in net payments across all sectors of the economy.
In the January-July 2024 period, the current account deficit increased by EUR 1.3 billion compared to the same period in 2023 and stood at EUR 8.6 billion.
The goods deficit increased due to the simultaneous decline in exports and increase in imports. At current prices, exports of goods decreased by 1.3% (-4.3% at constant prices) and imports of goods increased by 4.1% (4.8% at constant prices). In particular, at current prices, exports of goods excluding fuel decreased by 2.7%, while imports increased by 5.4% (-5.6% and 5.7% at constant prices respectively).
The surplus of the services balance widened, driven primarily by an improvement in the travel services balance and secondarily in the transport and other services balance. Compared with the January-July 2023 period, non-resident traveler arrivals increased by 11.2% and related receipts by 5.6%.
The deficit of the primary income balance increased compared to the same period in 2023, mainly due to a decrease in net receipts from other primary income. The surplus of the secondary income balance almost doubled compared with the corresponding period in 2023, due to an increase in net receipts in the other non-general government sectors of the economy.
Capital account balance
In July 2024, the capital account recorded a small surplus of EUR 1.2 million, compared with a deficit in the corresponding month of 2023, reflecting the recording of net receipts against net payments in the other sectors of the economy, except general government.
In January-July 2024, the capital account recorded a deficit of EUR 564.8 million, compared with a surplus in the corresponding period of 2023, reflecting the decrease in net receipts of the general government, as well as the recording of net payments against net receipts in the other sectors of the economy, except general government.
Total current and capital account balance
In July 2024, the surplus of the overall current and capital account (which corresponds to the economy's external financing needs) decreased by EUR 559.4 million compared with the corresponding month in 2023, to EUR 247.4 million.
In the period January-July 2024, the deficit of the overall current and capital account widened compared to the corresponding period of 2023 and stood at EUR 9.1 billion.
Financial transactions balance
In July 2024, in the direct investment category, residents' external assets recorded net flows of EUR 92.6 million and residents' external liabilities recorded net flows of EUR 486.3 million, with no notable transactions.
In portfolio investments, the decrease in residents' external assets mainly reflected a EUR 718.0 million decrease in their positions in foreign bonds and bills. The increase in their liabilities is mainly due to a EUR 228.0 million increase in non-residents' holdings of shares of domestic companies and a EUR 135.0 million increase in non-residents' holdings of Greek bonds and bills.
A decrease of EUR 1.1 billion in residents' foreign deposits and repos was the reason for the decline in claims on foreign assets in the other investment category. This was somewhat compensated by a statistical adjustment pertaining to the issuance of banknotes, which came in at EUR 745.0 million. The decrease in their liabilities stems from a EUR 4.3 billion decrease in non-residents' domestic deposits and repos, partly offset by a EUR 1.6 billion increase in their liabilities to non-residents and, to a lesser extent, by the statistical adjustment related to banknote issuance (EUR 745.0 million).
In the January-July 2024 period, in the direct investment category, residents' claims on the rest of the world recorded net flows of EUR 978.1 million and residents' liabilities vis-à-vis the rest of the world, corresponding to direct investment by non-residents in Greece, recorded net flows of EUR 2.6 billion.
In portfolio investment, the increase in residents' external assets was largely due to a EUR 3.3 billion increase in residents' holdings of foreign bonds and bills. The increase in their liabilities mainly reflects the EUR 6.1 billion increase in non-residents' holdings of Greek bonds and bills, as well as the EUR 1.8 billion increase in non-residents' holdings of domestic equities.
In the other investment category, residents' holdings of foreign deposits and repos decreased by EUR 6.0 billion, partially offsetting the statistical adjustment for banknote issuance (by EUR 1.2 billion) and an increase in lending to non-residents (by EUR 1.0 billion). Their liabilities decreased as a result of a EUR 1.8 billion decline in non-resident deposits and repos in Greece (including the TARGET account) and a EUR 1.5 billion decline in their lending obligations to non-residents, with the statistical adjustment for banknote issuance (EUR 1.2 billion) partially offsetting these declines.
At end-July 2024, the country's foreign exchange reserves stood at EUR 13.5 billion, compared to EUR 12.2 billion at end-July 2023.
