05/20/2022 – Press releases

-In March 2022the current account deficit increased year-on-year, mainly due to a deterioration in the primary and secondary income accounts and an increase in the goods balance deficit, partially offset by an improvement in the balance of services.
-In the first quarter 2022the current account deficit increased year on year, mainly due to a deterioration in the goods balance and, to a lesser extent, in the primary and secondary income accounts, which was offset to some extent measured by an increase in the services surplus.

Current account
In March 2022the current account deficit increased by 880.9 million euros over one year and stood at 2.3 billion euros.

A rise in the deficit of the balance of goods is explained by a greater increase in imports – in absolute terms – than in exports. Exports increased by 34.3% at current prices (and marginally by 0.7% at constant prices), while imports increased by 27.9% at current prices (9.2% at constant prices). In particular, exports of non-oil goods increased by 23.4% at current prices (6.4% at constant prices) and imports of non-oil goods increased by 22.2% at current prices (14.0% at constant prices).

An increase in the services balance surplus is attributable to an improvement in all its main components. Arrivals of non-residents increased by 318.9% and the corresponding receipts by 404.3% over one year. The transport balance surplus increased thanks to an improvement in the maritime transport balance.

The primary income account recorded a deficit, compared to a surplus in the same month a year earlier, due to a drop in receipts from other primary incomes. The secondary income account deficit more than doubled year-on-year, due to lower general government revenue.

In the first quarter 2022the current account deficit recorded an increase of 3.8 billion euros over one year and stood at 6.4 billion euros.

A rise in the deficit of the balance of goods is due to the fact that imports have increased more and faster than exports. In particular, exports increased by 32% at current prices (4.9% at constant prices) and imports increased by 47.9% at current prices (23.2% at constant prices). More specifically, exports and imports of non-oil goods increased respectively by 24.6% and 32.9% at current prices (10.7% and 24.2% at constant prices).

A rise in the services balance surplus is due to an improvement, primarily, in the travel balance and, secondarily, in the transport and other services balance. Non-resident arrivals increased by 295.8% and related receipts by 342.2% compared to the first quarter of 2021, corresponding to 55.4% and 62.9% of the respective 2019 levels. net transport increased by 5.8%.

The surplus in the primary income account decreased year on year, mainly due to a decline in net receipts from other primary income. The surplus in the secondary income account showed a slight decrease, due to an increase in net payments by general government, which was partly offset by an increase in net receipts from other sectors.

Capital account
In March 2022, the capital account recorded a surplus, compared to a deficit in March 2021, which amounted to 76.3 million euros. In the first quarter 2022the capital account recorded a deficit of €117.9m, compared to a surplus in the first quarter of 2021.

Combined current account and capital account
In March 2022, the combined current account and capital account deficit (corresponding to the economy’s external financing needs) increased by €516.4 million compared to March 2021 and stood at €2.3 billion. euros. In the first quarter 2022the combined current account and capital account deficit increased by €4.1 billion year-on-year to €6.6 billion.

Financial account
In March 2022, in respect of direct investments, residents’ foreign assets increased by €81.9 million and residents’ foreign liabilities by €803.9 million; the most important transactions concerned the sale of EURONET MERCHANT SERVICES to EFT SERVICES HOLDINGS BV (Netherlands) and the sale and transfer of the total number of Ethniki Insurance shares held by the National Bank of Greece (NBG) to the latter’s new subsidiary, CVC, Ethniki Holdings Sarl (Luxembourg).

In terms of portfolio investment, the increase in residents’ foreign assets is attributable to a €327 million increase in residents’ assets in financial derivatives, which was partly offset by a decrease of €167 million of their holdings of foreign bonds and treasury bills. The decrease in residents’ foreign liabilities is mainly due to a drop of 904 million euros in non-residents’ holdings of Greek Treasury bonds and bills.

Under other investments, the decrease in foreign assets of residents is explained by a decrease of 578.0 million euros in assets in deposits and pensions of residents abroad and a decrease in loans granted to non-residents, which were partially offset by a statistical adjustment related to the issue of banknotes. The increase in their liabilities is mainly due to an increase of €3.2 billion in non-resident deposit and pension holdings in Greece (TARGET account included) and a statistical adjustment of €657.0 million related to the issue of banknotes, which were partially offset by a decrease of €930.0 million in loans from non-residents to resident companies.

In the first quarter 2022under direct investment, residents’ foreign assets increased by €135.2 million and residents’ foreign liabilities, which represent direct investments by non-residents in Greece, increased by €2.5 billion .

In terms of portfolio investment, the increase in residents’ foreign assets is mainly due to an increase of 5.1 billion euros in residents’ assets in foreign bonds and Treasury bills. The increase in residents’ foreign liabilities is explained by a EUR 1.1 billion increase in non-residents’ holdings of Greek Treasury bonds and bills.

In terms of other investments, the drop in residents’ foreign assets mainly reflects a drop of 3.3 billion euros in deposits and pensions by residents abroad. An increase in their liabilities mainly represents a EUR 5.7 billion increase in non-resident deposit and pension holdings in Greece (TARGET account included) and a statistical adjustment of EUR 1.7 billion related to the ticket issuance.

To end of March 2022Greece’s reserve assets amounted to €13.1 billion.

Related information: Balance of payments data for April 2022 will be released on June 20, 2022.