Balance of Payments: March 2022
20/05/2022 - Press Releases
-In March 2022, the current account deficit increased year‑on‑year, mainly due to a deterioration in the primary and secondary income accounts and an increase in the deficit of the balance of goods, which were partly offset by an improvement in the services balance.
-In the first quarter of 2022, the current account deficit increased year‑on‑year, mainly due to a deterioration in the balance of goods and, to a lesser extent, the primary and secondary income accounts, which was offset to a certain degree by a rise in the services surplus.
Current account
In March 2022, the current account deficit grew by €880.9 million year-on-year and stood at €2.3 billion.
A rise in the deficit of the balance of goods is accounted for by a larger increase in imports – in absolute terms – than in exports. Exports grew by 34.3% at current prices (and marginally by 0.7% at constant prices), while imports increased by 27.9% at current prices (9.2% at constant prices). In particular, non‑oil exports of goods grew by 23.4% at current prices (6.4% at constant prices) and non‑oil imports of goods rose by 22.2% at current prices (14.0% at constant prices).
An increase in the surplus of the services balance is attributable to an improvement in all of its main components. Non‑residents’ arrivals grew by 318.9% and the relevant receipts by 404.3% year‑on‑year. The surplus of the transport balance grew on the back of an improvement in the sea transport balance.
The primary income account registered a deficit, against a surplus in the same month a year earlier, due to a drop in receipts from other primary income. The secondary income account deficit more than doubled year‑on‑year, as a result of lower general government receipts.
In the first quarter of 2022, the current account deficit recorded an increase of €3.8 billion year‑on‑year and stood at €6.4 billion.
A rise in the deficit of the balance of goods is due to the fact that imports increased more and faster than exports. In particular, exports grew by 32% at current prices (4.9% at constant prices) and imports increased by 47.9% at current prices (23.2% at constant prices). Specifically, non‑oil exports and imports of goods grew by 24.6% and 32.9%, respectively, at current prices (10.7% and 24.2% at constant prices).
A rise in the surplus of the services balance is due to an improvement in, primarily, the travel balance and, secondarily, the transport and other services balance. Non‑residents’ arrivals grew by 295.8% and the relevant receipts by 342.2% compared with the first quarter of 2021, which corresponds to 55.4% and 62.9% of the respective levels in 2019. Net transport receipts increased by 5.8%.
The surplus of the primary income account fell year‑on‑year, mainly due to a decline in net receipts from other primary income. Τhe surplus of the secondary income account registered a small decrease, as a result of a rise in general government net payments, which was partly offset by an increase in net receipts from other sectors.
Capital account
In March 2022, the capital account registered a surplus, against a deficit in March 2021, which stood at €76.3 million. In the first quarter of 2022, the capital account registered a deficit of €117.9 million, against a surplus in the first quarter of 2021.
Combined current and capital account
In March 2022, the deficit of the combined current and capital account (corresponding to the economy's external financing requirements) increased by €516.4 million relative to March 2021 and stood at €2.3 billion. In the first quarter of 2022, the deficit of the combined current and capital account grew by €4.1 billion year‑on‑year and stood at €6.6 billion.
Financial account
In March 2022, under direct investment, residents’ external assets increased by €81.9 million and residents’ external liabilities by €803.9 million; the most important transactions concerned the sale of EURONET MERCHANT SERVICES to EFT SERVICES HOLDINGS BV (Netherlands) and the sale and transfer of the total number of shares in Ethniki Insurance owned by the National Bank of Greece (NBG) to the latter’s newly established subsidiary CVC, Ethniki Holdings S.a.r.l. (Luxembourg).
Under portfolio investment, an increase in residents’ external assets is attributable to a rise of €327 million in residents’ holdings of financial derivatives, which was partly offset by a drop of €167 million in their holdings of foreign bonds and Treasury bills. A decrease in residents’ external liabilities is mostly due to a drop of €904 million in non‑residents’ holdings of Greek government bonds and Treasury bills.
Under other investment, a decrease in residents’ external assets is attributable to a decline of €578.0 million in residents’ deposit and repo holdings abroad and a drop in loans extended to non‑residents, which were partly offset by a statistical adjustment related to the issuance of banknotes. An increase in their liabilities is mainly due to a rise of €3.2 billion in non‑residents’ deposit and repo holdings in Greece (the TARGET account included) and a €657.0 million statistical adjustment related to the issuance of banknotes, which were partly offset by a decline of €930.0 million in non-residents’ loans to resident companies.
In the first quarter of 2022, under direct investment, residents' external assets increased by €135.2 million and residents' external liabilities, which represent non‑residents' direct investment in Greece, rose by €2.5 billion.
Under portfolio investment, an increase in residents' external assets is chiefly attributable to a rise of €5.1 billion in residents' holdings of foreign bonds and Treasury bills. An increase in residents' external liabilities is attributable to a rise of €1.1 billion in non‑residents' holdings of Greek government bonds and Treasury bills.
Under other investment, a drop in residents' external assets mainly reflects a decline of €3.3 billion in residents' deposit and repo holdings abroad. An increase in their liabilities represents mainly a rise of €5.7 billion in non‑residents’ deposit and repo holdings in Greece (the TARGET account included) and a €1.7 billion statistical adjustment associated with the issuance of banknotes.
At end‑March 2022, Greece’s reserve assets stood at €13.1 billion.
Related information: Balance of payments data for April 2022 will be released on 20 June 2022.