Press Releases

  • Share:

Balance of Payments: June 2022

19/08/2022 - Press Releases

-In June 2022, the current account deficit fell year‑on‑year due to an improvement in the services balance, which was partly offset by a deterioration mainly of the balance of goods and, to a lesser extent, of the primary and secondary income accounts.

-In the first half of 2022, the current account deficit grew year‑on‑year, owing primarily to a worsening of the balance of goods and, secondarily, of the primary income account, which was offset to a degree chiefly by an improvement in the balance of services, but also in the secondary income account.

Current account
In June 2022, the current account deficit decreased by €589.2 million year‑on‑year and stood at €722.9 million.

A rise in the deficit of the balance of goods is attributable to a larger increase in imports than in exports in absolute terms. Exports grew by 60.3% at current prices (11.7% at constant prices) and imports by 53.0% at current prices (21.6% at constant prices). In particular, non‑oil exports of goods grew by 30.5% at current prices (12.1% at constant prices) and non‑oil imports of goods rose by 26.4% at current prices (16.6% at constant prices).

An increase in the services surplus is attributable to an improvement, primarily, of the travel services balance and, secondarily, of the other components. Arrivals of non-residents rose by 241.5% and the relevant receipts by 224.5% year‑on‑year. It should be noted that arrivals amounted to 89.0% of their June 2019 levels and receipts exceeded their respective levels. The surplus of the transport balance increased on the back of an improvement in the sea transport surplus.

The deficit of the primary income account grew year‑on‑year, mainly owing to lower receipts from other primary income. The secondary income account registered a deficit, against a surplus in June 2021, as a result of higher payments in the general government balance.

In the first half of 2022, the current account deficit recorded an increase of €3.5 billion year‑on‑year and stood at €10.8 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 39.8% at current prices (5.5% at constant prices) and imports increased by 49.1% at current prices (22.8% at constant prices). Specifically, non‑oil exports and imports of goods grew by 27.5% and 32.5%, respectively, at current prices (11.1% and 23.3%, respectively, at constant prices).

An increase in the surplus of the services balance is mainly due to an improvement in the travel services balance, as well as in the transport and other services balances. Non‑residents’ arrivals grew by 360.8% and the relevant receipts by 329.3% year‑on‑year, amounting to 84.9% and 94.7% of their respective levels in 2019. Net transport receipts rose by 27.6%.

The surplus of the primary income account dropped year‑on‑year, mainly due to a decrease in net receipts from other primary income. The deficit of the secondary income account also declined, as a result of an improvement in the other sectors of the economy and in the general government.

Capital account
In June 2022, the capital account surplus grew almost by half year-on-year, due to higher net receipts from other sectors (excluding the general government) and stood at €421.8 million. In the first half of 2022, the capital account surplus more than doubled year‑on‑year and came to €1.5 billion, mainly owing to a rise in general government net receipts.

Combined current and capital account
In June 2022, the deficit of the combined current and capital account (corresponding to the economy’s external financing requirements) fell to €301.1 million, from €1.0 billion in June 2021. In the first half of 2022, the deficit of the combined current and capital account increased by €2.7 billion year‑on‑year and stood at €9.4 billion.

Financial account
In June 2022, under direct investment, residents’ external assets grew by €43.2 million and residents’ external liabilities by €800.6 million, without any remarkable transactions.

Under portfolio investment, an increase in residents’ external assets is mainly due to a €1.9 billion rise in residents’ holdings of foreign bonds and Treasury bills. An increase in residents' external liabilities is almost exclusively attributable to a rise of €182.0 million in non‑residents' holdings of Greek government bonds and Treasury bills.

Under other investment, a drop in residents’ external assets is due to a decrease of €871.0 million in residents’ deposit and repo holdings abroad, which was partly offset by a €525.0 million statistical adjustment associated with the issuance of banknotes and an increase of €109.9 million in loans extended to non‑residents. A rise in their liabilities reflects an increase of €2.4 billion in non‑residents’ deposit and repo holdings in Greece (including the TARGET account) and, to a lesser extent, a €525.0 million statistical adjustment related to the issuance of banknotes, which were partly offset by a drop of €1.7 billion in the outstanding debt to non‑residents.

In the first half of 2022, under direct investment, residents' external assets increased by €318.5 million and residents' external liabilities, which represent non‑residents' direct investment in Greece, rose by €4.3 billion.

Under portfolio investment, a net rise in residents’ external assets is mainly due to an increase of €9.4 billion in residents’ holdings of foreign bonds and Treasury bills. A net increase in their liabilities is almost exclusively attributable to a rise of €3.4 billion in non‑residents’ holdings of Greek government bonds and Treasury bills.

Under other investment, a drop in residents’ external assets is due to a decline of €4.1 billion in residents’ deposit and repo holdings abroad, which was partly offset by a €2.8 billion statistical adjustment associated with the issuance of banknotes. A rise in residents’ external liabilities reflects chiefly an increase of €7.7 billion in non‑residents’ deposit and repo holdings in Greece (including the TARGET account) and a €2.8 billion statistical adjustment associated with the issuance of banknotes, which was partly offset by a decline of €3.8 billion in their outstanding debt to non‑residents.

At end‑June 2022, Greece’s reserve assets stood at €11.0 billion, against €9.1 billion at end‑June 2021.

Note: Balance of payments data for July 2022 will be released on 20 September 2022.

This website uses cookies for the optimization of your user experience. Learn More
I Accept