The current account deficit shrank significantly in October, as imports contracted faster than exports, while travel receipts continued their upward trend.
According to the data released by the Bank of Greece, the current account deficit was reduced to 1.4 billion euros in October 2023 compared to October 2022.
More specifically, exports fell by 8.7% at current prices (-3.9% at constant prices) and imports fell by 17.2% at current prices (-6.1% at constant prices). In particular, exports of non-fuel goods decreased by 5.8% at current prices (-7.6% at constant prices), while imports of non-fuel goods decreased by 3.4% at current prices (-3.1% at fixed values).
The increase in the surplus in the services balance is mainly due to the improvement in the travel balance and, to a lesser extent, in the transport and other services balances. Non-resident traveler arrivals increased by 14.0% and related receipts by 10.2% compared to October 2023.
The deficit of the primary income balance increased compared to the corresponding month in 2022, mainly due to the increase in net payments for interest, dividends and profits. The deficit of the secondary income balance increased, compared to October 2022, due to the increase in net payments to the general government sector.
January-October period
In the period January – October 2023, the current account deficit decreased by 5.9 billion euros compared to the corresponding period in 2022 and stood at 8.7 billion euros.
The decrease in the goods balance deficit is due to a greater decrease in imports than exports. Exports decreased by 6.5% at current prices (-2.4% at constant prices), while imports decreased by 11.5% at current prices (-4.0% at constant prices). In particular, at current prices, exports of non-fuel goods showed a marginal decrease of 0.4%, while the corresponding imports fell by 2.4% (-4.7% and -4.0% at constant prices respectively).
The improvement in the surplus in the services balance is due to the improvement primarily in the travel balance and secondarily in the other services balance, which was partially offset by the deterioration in the transport balance. Non-resident traveler arrivals increased by 17.0% and related receipts by 14.7% compared to the corresponding period in 2022.
The deficit in the primary income balance worsened compared to the corresponding period in 2022, due to an increase in net payments for interest, dividends and profits, which was offset to some extent by a rise in net receipts from other primary incomes. The secondary income account recorded a surplus, against a deficit in the corresponding period of 2022, chiefly owing to a shift from net payments to net receipts in the general government sector and, to a lesser extent, to higher net receipts in the other sectors of the economy excluding general government.
