Balance of Payments: November 2022
20/01/2023 - Press Releases
- In November 2022, the current account deficit grew year‑on‑year, mainly due to a worsening of the balance of goods and, to a lesser extent, of the balance of services and the primary and the secondary income account.
- In the January‑November 2022 period, the current account deficit increased year‑on‑year, chiefly owing to a worsening of the balance of goods, as well as of the primary and the secondary income account, which was offset to a degree by an improvement in the balance of services.
Current account
In November 2022, the current account deficit recorded an increase of €1.2 billion year‑on‑year and stood at €3.9 billion.
A rise in the deficit of the balance of goods is accounted for by a larger increase in imports than in exports. Exports grew by 16.7% at current prices (-4.7% at constant prices) and imports rose by 22.6% at current prices (6.9% at constant prices). Specifically, non‑oil exports of goods grew by 10.2% at current prices (-3.2% at constant prices) and non‑oil imports of goods by 8.5% at current prices (2.3% at constant prices).
A decrease in the services surplus is attributable to a deterioration in the transport and the other services balance, while the travel balance improved. Non‑residents’ arrivals rose by 44.7% and the relevant receipts by 15.9% year‑on‑year. It should be noted that arrivals stood at 87.4% of their November 2019 level and receipts almost reached it (99.6%).
The primary income account deficit grew year‑on‑year, owing mainly to higher net interest, dividend and profit payments. The deficit of the secondary income account also registered a small increase year‑on‑year.
In the January-November 2022 period, the current account deficit rose by €7.5 billion year‑on‑year and stood at €17.5 billion.
A rise in the deficit of the balance of goods is accounted for by a larger increase in imports than in exports. Exports grew by 37.0% at current prices (4.2% at constant prices) and imports increased by 43.6% at current prices (18.8% at constant prices). Specifically, non‑oil exports and imports of goods grew by 23.8% and 25.9%, respectively, at current prices (7.3% and 17.4% at constant prices).
An increase in the surplus of the services balance is due to an improvement of, primarily, the travel balance and, secondarily, the transport and other services balances. Non‑residents’ arrivals rose by 90.3% and the relevant receipts by 68.5% year-on-year, representing 88.9% and 97.2% of their respective levels in 2019. Net transport receipts increased by 7.5%.
The primary income account registered a deficit, against a surplus in the same period of 2021, mainly owing to a drop in net receipts of other primary income. The secondary income account also recorded a deficit, against a surplus in the same period of 2021, as the general government registered net payments instead of net receipts.
Capital account
In November 2022, the capital account surplus decreased year‑on‑year and stood at €240.3 million, as a result of lower receipts in the other sectors of the economy excluding general government. In the January-November 2022 period, the capital account surplus declined year‑on‑year and stood at €2.9 billion, owing to lower net receipts in the general government balance.
Combined current and capital account
In November 2022, the deficit of the combined current and capital account (corresponding to the economy’s external financing requirements) increased and stood at €3.7 billion. In the January-November 2022 period, the deficit of the combined current and capital account grew by €8.2 billion year‑on‑year and stood at €14.6 billion.
Financial account
In November 2022, under direct investment, residents’ external assets increased by €393.1 million and residents’ external liabilities rose by €495.4 million, without any remarkable transactions.
Under portfolio investment, a rise in residents’ external assets is mainly due to a rise of €679.0 million in residents’ holdings of foreign bonds and Treasury bills. An increase in their liabilities is mainly due to a rise of €1.2 billion in non‑residents’ holdings of Greek government bonds and Treasury bills.
Under other investment, an increase in residents’ external assets reflects mainly a statistical adjustment (of €733.0 million) associated with the issuance of banknotes, which was partly offset by a decrease of €297.9 million in loans extended to non‑residents and a decline of €278.0 million in residents’ deposit and repo holdings abroad. An increase in their liabilities represents mainly a rise of €2.5 billion in non‑residents’ deposit and repo holdings in Greece (the TARGET account included), as well as a €733.0 million statistical adjustment associated with the issuance of banknotes.
In the January-November 2022 period, under direct investment, residents’ external assets increased by €1.5 billion and residents’ external liabilities, which represent non‑residents’ direct investment in Greece, rose by €6.2 billion.
Under portfolio investment, an increase in residents’ external assets is mainly due to a rise of €9.3 billion in residents’ holdings of foreign bonds and Treasury bills. An increase in their liabilities is almost exclusively due to a rise of €1.3 billion in non‑residents’ holdings of Greek bonds and Treasury bills.
Under other investment, a drop in residents’ external assets is due to a decline of €6.8 billion in residents’ deposit and repo holdings abroad, which was partly offset by a €4.6 billion statistical adjustment associated with the issuance of banknotes. An increase in residents’ external liabilities reflects chiefly a rise of €13.1 billion in non‑residents’ deposit and repo holdings in Greece (the TARGET account included) and a €4.6 billion statistical adjustment associated with the issuance of banknotes, which were partly offset by a decline of €4.9 billion in the outstanding debt to non‑residents.
At end‑November 2022, Greece's reserve assets stood at €11.1 billion, compared with €12.5 billion at end‑November 2021.
Note: Balance of payments statistics for December 2022 will be released on 20 February 2023.