Balance of Payments: May 2025
21/07/2025 - Press Releases
- In May 2025, the current account registered a small surplus, against a deficit in May 2024, due to an improvement in all sub-accounts, mainly in the balance of goods.
- In January-May 2025, the current account deficit decreased year‑on‑year, owing to an improvement mainly in the balance of goods and, to a lesser extent, in the primary and the secondary income accounts, while the services surplus declined.
Current account
In May 2025, the current account recorded a small surplus against May 2024, improving by €2.5 billion to reach €196.5 million.
The goods deficit shrank, reflecting a drop in imports and a parallel marginal increase in exports. At current prices, exports rose by 0.3% (7.8% at constant prices) and imports decreased by 14.3% (-12.3% at constant prices). Specifically, non-oil goods exports at current prices increased by 11.0% (14.7% at constant prices) and the corresponding imports grew by 7.1% (6.5% at constant prices).
The surplus of the services balance widened due to an improvement in all sub‑accounts, mainly the travel balance and, to a lesser extent, the other services and transport balances. Compared with May 2024, non‑residents’ arrivals fell by 2.7% and the relevant receipts rose by 17.7%.
The deficit of the primary income account contracted year-on-year, reflecting an increase in net receipts from other primary income, which was partly offset by a rise in net interest, dividend and profit payments. The secondary income account recorded a surplus, against a deficit in the same month a year earlier, reflecting a shift from net payments to net receipts in the general government sector, following the disbursement of the fifth tranche, in the form of grants, under the Recovery and Resilience Facility (RRF).
In January-May 2025, the current account deficit decreased by €2.1 billion year‑on‑year to stand at €6.4 billion.
The goods deficit narrowed, reflecting a larger drop in imports than in exports. At current prices, exports fell by 4.2% (up by 0.8% at constant prices) and imports declined by 5.6% (-4.2% at constant prices). In particular, non-oil exports of goods at current prices grew by 4.6% and the corresponding imports increased by 2.5% (6.7% and 1.7% at constant prices, respectively).
The services surplus contracted, due to a deterioration in the transport balance, which was offset to a degree by an improvement in the travel balance. Compared with January-May 2024, non‑residents’ arrivals increased by 2.1% and the relevant receipts rose by 12.7%.
The deficit of the primary income account decreased significantly, reflecting higher net receipts from other primary income and, to a lesser extent, lower net interest, dividend and profit payments. The surplus of the secondary income account widened year-on-year, reflecting almost zero net payments in the general government sector, although the other sectors of the economy excluding general government recorded lower net receipts.
Capital account
In May 2025, the capital account showed a surplus, against a deficit in the corresponding period of 2024, and stood at €768.7 million, reflecting primarily net receipts, instead of virtually zero net payments in the general government sector, mainly related to the inflow of RRF funds.
In January-May 2025, the capital account recorded a surplus of €1.2 billion, against a deficit in the corresponding period of 2024, as a result of both an increase in general government net receipts and a decrease in net payments in the other sectors of the economy excluding general government.
Combined current and capital account
In May 2025, the combined current and capital account (corresponding to the economy’s external financing requirements) registered a surplus, against a deficit in the same month a year earlier, to stand at €965.2 million.
In January-May 2025, the deficit of the combined current and capital account narrowed by €4.0 billion year-on-year and stood at €5.2 billion.
Financial account
In May 2025, direct investment saw net flows of €158.2 million under residents’ external assets and net flows of €353.4 million under residents’ external liabilities.
Under portfolio investment, a rise in residents’ external assets reflects an increase in residents’ holdings of shares in foreign firms. A rise in their liabilities is due to an increase in non‑residents’ holdings of both Greek equities, by €310.0 million, and Greek bonds and Treasury bills, by €243.0 million.
Under other investment, residents’ external assets grew mainly due to an increase of €1.1 billion in residents’ deposit and repo holdings abroad and, to a lesser extent, a €534.0 million statistical adjustment associated with the issuance of banknotes and a €288.6 million rise in loans extended to non-residents by domestic financial institutions. An increase in residents’ external liabilities is attributable to a rise of €1.8 billion in their outstanding debt to non‑residents (associated with a disbursement under the loan component of the RRF), as well as a statistical adjustment of €534.0 million related to the issuance of banknotes, which were offset to a degree by a €1.5 billion drop in non‑residents’ deposit and repo holdings in Greece (the TARGET account included).
In January-May 2025, direct investment showed a €1.7 billion net flow under residents’ external assets and a €2.1 billion net flow under residents’ external liabilities, representing non‑residents’ direct investment in Greece.
Under portfolio investment, a decrease in residents’ external assets is mainly due to a €2.6 billion drop in residents’ holdings of foreign bonds and Treasury bills, which was partly offset by a €1.2 billion rise in residents’ holdings of foreign equities. An increase in their liabilities mainly reflects a €5.9 billion rise in non‑residents’ holdings of Greek bonds and Treasury bills.
Under other investment, an increase in residents’ external assets mainly reflects a €2.6 billion statistical adjustment related to the issuance of banknotes and, to a lesser extent, a €527.1 million rise in residents’ deposit and repo holdings abroad, as well as an increase of €462.0 million in loans extended to non‑residents. A decrease in residents’ external liabilities chiefly reflects a €3.2 billion drop in non‑residents’ deposit and repo holdings in Greece (the TARGET account included), which was partly offset by a €2.6 billion statistical adjustment related to the issuance of banknotes.
At end-May 2025, Greece’s reserve assets stood at €15.8 billion, compared with €13.4 billion at end-May 2024.
Note: Balance of Payments data for June 2025 will be released on 20 August 2025.