ATHENS – Greece’s current account deficit decreased in the January-September period year-on-year, owing to an improvement in the balance of goods, the balance of services and the secondary income account, which was offset to a degree by a worsening in the primary income account, the Bank of Greece said on Monday.

More specifically, the current account deficit decreased by 4.6 billion euros to stand at 7.3 billion. A decline in the deficit of the balance of goods is accounted for by a larger drop in imports than in exports. Exports fell by 6.2% at current prices (‑2.2% at constant prices), whereas imports declined by 10.8% at current prices (‑3.8% at constant prices). Specifically, at current prices non-oil exports of goods rose marginally by 0.2%, while the corresponding imports decreased by 2.3% (‑4.4% and ‑4.0% at constant prices, respectively). An increase in the services surplus is attributed to an improvement, primarily, in the travel balance and, secondarily, in the other services balance, which was partly offset by a deterioration in the transport balance. Non-residents’ arrivals grew by 17.3% and the relevant receipts increased by 15.2% year-on-year. The primary income account deficit deteriorated year-on-year, due to an increase in net interest, dividend and profit payments, which was partly offset by a rise in net receipts from other primary income. The surplus of the secondary income account widened year-on-year, owing to a shift from net payments to net receipts in the general government sector and, to a lesser extent, an increase in net receipts in the other sectors of the economy excluding general government.

In September, the current account deficit slightly more than halved year-on-year and stood at 404.3 million.

A decline in the deficit of the balance of goods is accounted for by a larger drop in imports than in exports. Exports declined by 10.3% at current prices (‑10.1% at constant prices) and imports fell by 16.3% at current prices (‑7.5% at constant prices). More specifically, non-oil exports of goods declined by 10.1% at current prices (‑12.2% at constant prices), whereas non-oil imports of goods dropped by 3.7% at current prices (‑3.3% at constant prices). An increase in the surplus of the services balance is mainly due to an improvement in the travel balance and, to a lesser extent, the transport and other services balances. Non-residents’ arrivals rose by 12.7% and the relevant receipts by 14.6% year-on-year.

The primary income account registered a deficit, against a surplus in the corresponding month a year earlier, mainly on the back of significant net payments, against net receipts, for interest, dividend and profits. The deficit of the secondary income account decreased compared with September 2022, reflecting a fall in general government net payments, which was partly offset by an increase in the net payments of the other sectors of the economy excluding general government.

In the January-September period, the capital account surplus narrowed year-on-year and stood at 2.0 billion, mainly owing to lower net receipts in the other sectors of the economy excluding general government. The deficit of the combined current and capital account declined significantly year-on-year and amounted to 5.2 billion. The capital account surplus decreased relative to September 2022 and stood at 48.5 million, as a result of net payments, instead of net receipts, recorded in the other sectors of the economy excluding general government.

Under direct investment, residents’ external assets increased by 840.6 million and residents’ external liabilities, which represent non-residents’ direct investment in Greece, rose by 3.9 billion. The deficit of the combined current and capital account declined significantly year-on-year and amounted to €5.2 billion.

At the end of September 2023, Greece’s reserve assets stood at 11.8 billion, compared with 11.1 billion at end-September 2022.