Greece’s current account balance showed the first annual surplus since 1948 in 2013, the Bank of Greece said on Wednesday.
In a report, the central bank said that the current account balance showed a surplus of 1.2 billion euros last year, against a deficit of 4.6 billion in 2012, reflecting primarily a significant reduction of the trade deficit by 2.4 billion euros and rising surplus in the current transfer balance (by 3.0 billion euros) and the services balance (by 1.7 billion euros), while the incomes deficit widened in 2013.
The trade deficit shrank last year mainly due to a significant reduction in import payments (-4.5 pct) and a 2.3 pct increase in export receipts.
Apart from oil product exports, which account for the bulk of this increase, the contribution of foods and beverages and non-metallic mineral products was also significant. The decline in the import bill resulted mainly from lower oil imports, the report said.
An increase in the services surplus is mainly due to higher net travel receipts and the improved “other” services balance, which offset a contraction in net transport receipts. In more detail, travel spending in Greece by non-residents grew by 14.9 pct year-on-year. At the same time, travel spending by residents abroad remained almost unchanged.
The income account deficit rose by 1.2 billion euros year-on-year, due to higher net interest, dividend and profit payments. Finally, the current transfers balance showed a surplus of 4.5 billion euros, up by 3 billion year-on-year. This development is mainly due to higher general government net transfer receipts (mainly from the EU).
The capital transfers balance recorded a surplus of 3 billion euros, up by 0.7 billion year-on-year.
In the January-December period, non-residents’ direct investment in Greece showed a net inflow of 1.9 billion euros, whereas residents’ direct investment abroad showed a net inflow (disinvestment) of 469 million.
Under portfolio investment, a net outflow of 6.6 billion euros was recorded (compared with a net outflow of 100 billion in the same period of 2012).
Under “other” investment, a net inflow of 676 million was recorded (compared with a net inflow of 101.7 billion in the same period of 2012).
At the end of December, Greece’s reserve assets stood at 4.2 billion euros, compared with 5.5 billion at end-December 2012.
(source: ana-mpa)
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
