Balance of Payments: March 2025
21/05/2025 - Press Releases
- In March 2025, the current account deficit increased year-on-year, mainly due to a deterioration in the balance of goods and services and, to a lesser extent, in the secondary income account, while the primary income account improved.
- In the first quarter of 2025, the current account deficit increased year-on-year, owing to a deterioration in the secondary income account and the goods and services balances, which was partly offset by an improvement in the primary income account.
Current Account
In March 2025, the current account deficit increased by €496.7 million year-on-year and stood at €3.0 billion.
The goods deficit widened, as exports decreased and imports increased. At current prices, exports dropped by 8.9% (‑3.8% at constant prices) and imports grew by 2.6% (3.3% at constant prices). However, non-oil goods exports at current prices increased by 5.5% (7.5% at constant prices), while the corresponding imports increased by 3.4% (2.3% at constant prices).
The services surplus declined, due to a decrease in the surplus of the transport and travel balances, while the surplus of the other services balance increased. Compared with March 2024, non-residents’ arrivals rose by 5.4% and the relevant receipts grew by 5.1%.
The deficit of the primary income account almost halved year-on-year, primarily reflecting an increase in net receipts from other primary income and, secondarily, a decrease in net interest, dividend and profit payments. The secondary income account deficit grew in March 2025, due to higher net payments in the other sectors of the economy excluding general government.
In the first quarter of 2025, the current account deficit increased by €707.8 million year-on-year and stood at €4.5 billion. The goods deficit grew, reflecting a larger drop in exports than in imports. At current prices, exports decreased by 2.2% (up by 0.8% at constant prices) and imports fell slightly by 0.2% (-0.2% at constant prices). However, non-oil goods exports at current prices increased by 4.2%, while the corresponding imports grew by 3.0% (5.6% and 2.0% at constant prices, respectively).
The services surplus contracted, due to a decrease in the surplus of all its components, mainly the transport and other services balances. Compared with the first quarter of 2024, non‑residents’ arrivals rose by 5.4% and the relevant receipts grew by 4.4%.
The primary income account recorded a surplus, against a deficit in the first quarter of 2024, owing to higher net receipts from other primary income and lower net interest, dividend and profit payments. The surplus of the secondary income account decreased year-on-year in the first quarter of 2025, as general government registered higher net payments and the other sectors of the economy, excluding general government, recorded lower net receipts.
Capital Account
In March 2025, the capital account showed a surplus, against a deficit in the corresponding period of 2024, and stood at €122.1 million, reflecting net receipts, instead of virtually zero net payments in general government.
In the first quarter of 2025, the capital account showed a surplus, against a deficit in the corresponding period of 2024, standing at €482.8 million, mainly due to substantially higher net receipts in general government and lower net payments of the other sectors of the economy.
Combined current and capital account
In March 2025, the deficit of the combined current and capital account (corresponding to the economy’s external financing requirements) increased against March 2024 and stood at €2.9 billion.
In the first quarter of 2025, the deficit of the combined current and capital account decreased year-on-year and stood at €4.0 billion.
Financial Account
In March 2025, direct investment saw net flows of €151.4 million under residents’ external assets and net flows of €427.1 million under residents’ external liabilities.
Under portfolio investment, a decrease in residents’ external assets mainly reflects a decline of €1.0 billion in residents’ holdings of foreign bonds and Treasury bills. An increase in their liabilities is mainly due to a €1.4 billion rise in non-residents’ holdings of Greek bonds and Treasury bills.
Under other investment, residents’ external assets dropped due to a decline of 1.3 billion in residents’ deposit and repo holdings abroad, which was partly offset by a €701.0 million statistical adjustment associated with the issuance of banknotes. A decrease in residents’ external liabilities reflects chiefly a €2.3 billion drop in non‑residents’ deposit and repo holdings in Greece (the TARGET account included), which was offset, to a degree, by a €701.0 million statistical adjustment associated with the issuance of banknotes.
In the first quarter of 2025, direct investment showed a €1.2 billion flow under residents’ external assets and a €1.2 billion flow under residents’ external liabilities, representing non‑residents’ direct investment in Greece.
Under portfolio investment, a decrease in residents’ external assets is mainly due to a drop of €1.4 billion in residents’ holdings of foreign bonds and Treasury bills, which was partly offset by a €678.5 million rise in residents’ holdings of non-resident corporate bonds. An increase in their liabilities reflects a rise of €5.0 billion in non‑residents’ holdings of Greek bonds and Treasury bills.
Under other investment, a rise in residents’ external assets is mainly due to a €1.8 billion statistical adjustment associated with the issuance of banknotes and, to a lesser extent, an increase of 390.6 million in loans to non-residents by domestic financial institutions. A decline in their liabilities is mainly associated with a decrease of €2.0 billion in the outstanding debt to non‑residents and a drop of €1.8 billion in non‑residents’ deposit and repo holdings in Greece (the TARGET account included), which was offset to a degree by a €1.8 billion statistical adjustment related to the issuance of banknotes.
At end-March 2025, Greece’s reserve assets stood at €15.7 billion, compared with €13.0 billion at end-March 2024.
Note: Balance of payments data for April 2025 will be released on 20 June 2025.