Balance of Payments: February 2022
20/04/2022 - Press Releases
-In February 2022, the current account deficit grew year‑on‑year, due to an increase in the deficit of the balance of goods, which was partly offset by an improvement in the primary and secondary income accounts and a small rise in the surplus of the services balance.
-In the January‑February 2022 period, the current account deficit increased year‑on‑year, due to a deterioration in the balance of goods, which was offset to some extent by an improvement in the other sub‑accounts.
Current account
In February 2022, the current account deficit grew by €1.4 billion year‑on‑year and stood at €2.1 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 26.3% at current prices (4.3% at constant prices), while imports rose by 64.6% at current prices (37.5% at constant prices). In particular, non‑oil exports of goods increased by 27.5% at current prices (14.6% at constant prices) and non‑oil imports of goods rose by 38.1% at current prices (29.2% at constant prices).
An increase in the services surplus is due to an improvement in the travel balance and in the other services balance, which was partly offset by a decline in the surplus of the transport balance. Non‑residents’ arrivals grew by 314.8% and the relevant receipts by 302.5% year‑on‑year. The surplus of the transport balance decreased, despite an improvement in the surplus of the sea transport balance.
The surplus of the primary income account grew year‑on‑year, mainly as a result of higher receipts from other primary income. The secondary income account registered a surplus, against a deficit in the same month a year earlier, due to the improved general government balance.
In the January‑February 2022 period, the current account deficit recorded an increase of €2.9 billion year‑on‑year and stood at €4.1 billion.
A rise in the deficit of the balance of goods is due to the fact that imports increased more than exports. In particular, exports grew by 30.5% at current prices (7.1% at constant prices) and imports increased by 61.3% at current prices (34.7% at constant prices). Specifically, non‑oil exports and imports of goods rose by 25.2% and 40.0%, respectively (13.1% and 30.9% at constant prices).
An increase in the services surplus is due to an improvement in the travel balance and in the other services balance, which was partly offset by a decline in the surplus of the transport balance. Non‑residents’ arrivals grew by 282.5% and the relevant receipts by 306.2% year‑on‑year, which corresponds to 56.6% and 63.7% of the respective levels in 2019. Net transport receipts dropped by 5.8%.
The surplus of the primary income account rose year‑on‑year, due to an increase in net receipts from other primary income, while the surplus of the secondary income account more than doubled, as a result of higher net receipts in the other sectors (excluding general government).
Capital account
In February 2022, the capital account registered a surplus, against a deficit in February 2021, and stood at €27.7 million. In the January‑February 2022 period, the capital account registered a deficit, against a surplus in the same period of 2021, to stand at €194.2 million.
Combined current and capital account
In February 2022, the deficit of the combined current and capital account (corresponding to the economy's external financing requirements) increased by €1.3 billion relative to February 2021 and stood at €2.1 billion. In the January‑February 2022 period, the deficit of the combined current and capital account grew by €3.6 billion year‑on‑year and stood at €4.3 billion.
Financial account
In February 2022, under direct investment, residents’ external assets increased by €31.3 million and residents’ external liabilities rose by €1.1 billion; the most important transaction concerned the capital increase and intra‑group borrowing of MSCIF DYNAMI BIDCO SINGLE MEMBER S.A. from the parent company SPEAR WTE INVESTMENTS SARL (Luxembourg) for the purpose of acquiring a stake in HEDNO S.A. (Hellenic Electricity Distribution Network Operator S.A.)
Under portfolio investment, an increase in residents’ external assets is due to a rise of €2.1 billion in residents’ holdings of foreign bonds and Treasury bills. A decrease in residents’ external liabilities is due to a drop of €528.0 million in non‑residents’ holdings of Greek government bonds and Treasury bills.
Under other investment, a decrease in residents’ external assets is mainly due to a €2.0 billion decline in residents’ deposit and repo holdings abroad. An increase in their liabilities is mainly due to a rise of €862.0 million in non‑residents’ deposit and repo holdings in Greece (the TARGET account included) and a €670.0 million statistical adjustment related to the issuance of banknotes.
In the January‑February 2022 period, under direct investment, residents’ external assets rose by €53.2 million and residents’ external liabilities, which represent non‑residents’ direct investment in Greece, increased by €1.7 billion.
Under portfolio investment, an increase in residents' external assets is chiefly attributable to a rise of €5.2 billion in residents' holdings of foreign bonds and Treasury bills. An increase in residents' external liabilities is attributable to a rise of €2.0 billion in non‑residents' holdings of Greek government bonds and Treasury bills.
Under other investment, a decrease in residents’ external assets is due to a decline of €2.7 billion in residents’ deposit and repo holdings abroad and a drop of €273.3 million in loans extended to non‑residents. 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) and a €1.0 billion statistical adjustment associated with the issuance of banknotes. At end‑February 2022, Greece’s reserve assets stood at €13.0 billion.
Related information:
Balance of payments data for March 2022 will be released on 20 May 2022.