Tourism revenues were lower this August compared to last year, although a significant increase in the number of visitors was recorded, according to data from the Bank of Greece (BoG).
Compared to August 2023, arrivals of non-resident travelers increased by 6.6%, while respective revenues decreased by 1.8%.
Balance of payments
According to BoE data, in August 2024, the current account surplus increased compared to the same month of 2023, due to the improvement in the goods balance and, to a lesser extent, the services balance, which was partially offset by the deterioration of the primary balance. and secondary income balances.
In the period January-August 2024, the current account deficit increased compared to the same period in 2023, due to the deterioration of the goods balance and, to a lesser extent, the primary income balance, which was partially offset by the improvement mainly in the balance of secondary income, as well as in the services balance.
Current account balance
In August 2024, the current account surplus increased by 39.4 million euros compared to the same month of 2023 and stood at 651.3 million euros.
The goods balance deficit decreased, due to a greater decrease in imports than in exports. At current prices, exports of goods fell by 1.7% (plus 3.6% at constant prices), while imports of goods fell by 5.3% (plus 4.0% at constant prices). In particular, at current prices, exports of non-fuel goods increased by 7.9% (5.6% at constant prices), while imports of non-fuel goods decreased by 5.9% (6.3% at constant prices).
The services balance surplus registered a small increase, due to the improvement in the other services balance, while the travel services balance decreased, with the transport balance remaining essentially stable. Compared to August 2023, arrivals of non-resident travelers increased by 6.6%, while respective revenues decreased by 1.8%.
The primary income balance deficit increased compared to the corresponding month of 2023, reflecting a decrease in net receipts from other primary income and, to a lesser extent, an increase in net payments of interest, dividends and profits. The secondary income balance deficit increased compared to August 2023, as a result of the increase in net payments to the general government sector.
In the period January-August 2024, the current account deficit increased by 989.5 million euros compared to the corresponding period of 2023 and amounted to 7.3 billion euros.
The goods balance deficit increased, due to the increase in imports and the simultaneous decrease in exports. At current prices, exports of goods decreased by 2.4% (-4.2% at constant prices) and imports of goods increased by 1.9% (2.9% at constant prices). In particular, at current prices, exports of non-fuel goods registered a decrease of 1.9%, while corresponding imports registered an increase of 3.6% (-4.7% and 3.8% at constant prices respectively) .
The services balance surplus increased, driven mainly by the improvement in the travel and other services balances and, to a lesser extent, the transport balance. Compared to the period January to August 2023, non-resident traveler arrivals increased by 9.9% and related revenues by 3.2%.
The primary income balance deficit increased compared to the same period in 2023, mainly due to the decrease in net revenues from other primary income, but also to the increase in net payments of interest, dividends and profits. The secondary income balance surplus almost doubled compared to the corresponding period of 2023, due to the increase in net revenues in the non-public sectors of the economy.
Capital Balance
In August 2024, the capital account surplus decreased by 89.8 million euros, to 11.8 million euros, mainly reflecting the recording of small net payments against net revenues in the general government sector.
In the period January-August 2024, the capital account showed a deficit of 553.0 million euros, compared to a surplus in the corresponding period of 2023, due to the reduction in net revenues of public administrations, as well as the recording of net payments against net revenues for other sectors of the economy, except public administrations.
Total Current and Capital Balance
In August 2024, the surplus of the total current account and capital transactions (which corresponds to the financing needs of the economy abroad) decreased by 50.4 million euros compared to the same month of 2023 and stood at 663.0 million of euros.
In the period January-August 2024, the deficit in the total current account and capital account widened compared to the corresponding period in 2023 and amounted to 7.9 billion euros.
Balance of Financial Transactions
In August 2024, in the direct investment category, residents’ external credits recorded net flows of 108.6 million euros and residents’ external liabilities net flows of 278.7 million euros, with no transactions worthy of notice.
In portfolio investments, the increase in residents’ credits abroad mainly reflects the increase of 676.0 million euros in their investments in foreign bonds and interest-bearing securities. The increase in its liabilities is mainly due to the €101.0 million increase in non-resident positions in Greek interest-bearing bonds and notes, partially offset by the €55.0 million decrease in non-resident positions in company shares national.
In the category of other investments, there was an increase in complaints from residents abroad, due to the statistical adjustment relating to the issuance of banknotes (613.0 million euros), which was partially offset by the decrease of 444.0 million euros . euros in resident investments in deposits and repurchase agreements abroad. The reduction in its liabilities results from the reduction of 690.2 million euros in its loan liabilities to non-residents and the reduction of 139.0 million euros in investments by non-residents in deposits and repurchase agreements in the country of origin, which was partially offset by the statistical adjustment associated with the issuance of banknotes (613.0 million euros).
In the period January-August 2024, in the category of direct investments, residents’ credits abroad recorded net flows of 1.4 billion euros and residents’ liabilities abroad, which correspond to direct investments of non residents in Greece, recorded net flows of 2.7 billion euros.
In portfolio investments, the increase in residents’ credits abroad is largely due to the €4.0 billion increase in residents’ investments in foreign bonds and interest-bearing securities. The increase in its liabilities mainly reflects the €6.2 billion increase in non-resident positions in Greek bonds and notes, as well as the €1.8 billion increase in non-resident positions in shares of national companies .
In the category of other investments, the decrease in resident credits abroad is mainly due to the decrease of 6.5 billion euros in resident investments in deposits and repurchase agreements abroad, which was partially offset by the statistical adjustment of the issuance of banknotes (by 1.8 billion euros) and the increase of 941.2 million euros in the granting of credit to non-residents. The reduction in its liabilities is associated with a €2.2 billion decrease in its loan obligations to non-residents and a €2.0 billion reduction in non-residents’ investments in deposits and repurchase agreements in Greece ( including the TARGET account), which was offset, to a certain extent, by the statistical adjustment relating to banknote issuance (by €1.8 billion).
At the end of August 2024, the country’s foreign exchange reserves stood at 13.6 billion euros, which compares to 12.2 billion euros at the end of August 2023.