Press Releases

Balance of Payments: April 2023

20/06/2023 - Press Releases

- In April 2023, the current account deficit increased year‑on‑year, due to a deterioration in the primary and secondary income accounts, while the balance of goods and, to a lesser extent, the balance of services improved.

- In the January‑April 2023 period, the current account deficit decreased year‑on‑year, chiefly owing to an improvement in the balance of goods and in the secondary income account, which was offset to a degree by a worsening in the primary income account.

Current account

In April 2023, the current account deficit recorded an increase of €120.7 million year‑on‑year and stood at €1.8 billion.

A decrease in the deficit of the balance of goods is accounted for by a larger drop in imports than in exports. Exports decreased by 3.9% at current prices (1.7% at constant prices) and imports fell by 11.9% at current prices (‑4.1% at constant prices). Specifically, non‑oil exports of goods decreased by 4.1% at current prices (‑7.2% at constant prices) and non‑oil imports of goods dropped by 4.0% at current prices (‑6.1% at constant prices).

A rise in the surplus of the services balance is due to an improvement in the other services balance, as well as in the travel balance, while the transport balance deteriorated. Non‑residents’ arrivals rose by 30.0% and the relevant receipts by 19.9% compared with April 2022.

The primary income account deficit grew year‑on‑year, owing to higher net interest, dividend and profit payments. The secondary income account recorded a deficit, against a surplus in April 2022, mainly because the general government registered net payments instead of net receipts.[1]

In the January‑April 2023 period, the current account deficit fell by €3.0 billion year‑on‑year and stood at €5.6 billion.

A drop in the deficit of the balance of goods is a combined result of an increase in exports and a decrease in imports. Exports grew by 12.0% at current prices (8.3% at constant prices) and imports fell by 2.1% at current prices (‑0.3% at constant prices). Specifically, at current prices non‑oil exports of goods increased by 8.4%, while the corresponding imports decreased slightly by 0.3% (0.3% and ‑3.8% at constant prices respectively).

A small increase in the services surplus is due to an improvement in the travel balance and in the other services balance, which was mostly offset by a deterioration in the transport balance. Non‑residents’ arrivals grew by 52.5% and the relevant receipts by 38.0% year‑on‑year.

The surplus of the primary income account decreased year‑on‑year, as a result of higher net interest, dividend and profit payments, which were partly offset by an increase in net receipts of other primary income. The surplus of the secondary income account widened year‑on‑year, chiefly due to higher general government net receipts.

Capital account

In April 2023, the capital account surplus declined year‑on‑year and stood at €28.1 million, owing to lower general government net receipts. In the January‑April 2023 period, the capital account surplus increased year‑on‑year and stood at €2.0 billion, mainly as a result of net receipts, instead of net payments, recorded in the other sectors of the economy excluding general government and, to a lesser extent, due to higher general government net receipts.

Combined current and capital account

In April 2023, the deficit of the combined current and capital account (corresponding to the economy's external financing requirements) increased to reach €1.7 billion. In the January‑April 2023 period, the deficit of the combined current and capital account was almost halved year‑on‑year, to stand at €3.7 billion.

Financial account

In April 2023, under direct investment, residents’ external assets grew by €193.2 million and residents’ external liabilities rose by €277.5 million, without any remarkable transactions.

Under portfolio investment, a decrease in residents' external assets is chiefly attributable to a decline of €83.0 million in residents' holdings of foreign bonds and Treasury bills. An increase in their liabilities is due to a rise of €2.2 billion in non‑residents’ holdings of Greek bonds and Treasury bills.

Under other investment, a drop in residents' external assets mainly reflects a decline of €220.0 million in residents' deposit and repo holdings abroad. A decline in residents’ external liabilities reflects chiefly a drop of €1.4 billion in non‑residents’ deposit and repo holdings in Greece (the TARGET account included), which was partly offset by a rise of €119.3 million in loans extended by non‑residents.

In the January‑April 2023 period, under direct investment, residents’ external assets increased by €364.9 million and residents’ external liabilities, which represent non‑residents’ direct investment in Greece, grew by €1.1 billion.

Under portfolio investment, a rise in residents’ external assets is almost exclusively due to an increase of €2.3 billion in residents’ holdings of foreign bonds and Treasury bills. An increase in their liabilities is mainly due to a rise of €2.9 billion in non‑residents’ holdings of Greek bonds and Treasury bills.

Under other investment, a drop in residents’ external assets, which is due to a decline of €1.2 billion in residents’ deposit and repo holdings abroad and a decrease of €326.6 million in loans extended to non‑residents by domestic financial institutions, was partly offset by a €997.0 million statistical adjustment associated with the issuance of banknotes. An increase in residents’ external liabilities reflects a rise of €523.0 million in non‑residents’ deposit and repo holdings in Greece (the TARGET account included) and a €997.0 million statistical adjustment associated with the issuance of banknotes, which were partly offset by a decline of €220.2 million in the outstanding debt to non‑residents.

At end‑April 2023, Greece’s reserve assets stood at €12.0 billion, compared with €11.5 billion at end‑April 2022.

Note: Balance of payments data for May 2023 will be released on 21 July 2023.