Greek current account deficit down in January

Greece’s current account balance showed a deficit of 295 million euros in January, down by 19 million year-on-year, the Bank of Greece said on Monday.

The central bank, in a monthly report, attributed this development exclusively to the improved income account, which recorded a surplus, against a deficit in January 2013, because the trade deficit rose

The 105 million euros increase in the trade deficit is attributable to the higher net oil import bill, while the non-oil trade deficit narrowed as a result of a decrease in the import bill which was stronger than the reduction in export receipts, the central bank said.

A slight decline (of 9 million euros) in the services surplus is accounted for by a worsening of the “other” services balance, which was for the most part offset by an increase in net transport and travel receipts. In more detail, travel spending in Greece by non-residents increased by 22.4% year-on-year, reflecting a 10.6% rise in non-residents’ arrivals over the same period, according to the Bank of Greece’s border survey.

In January 2014, the current transfers balance recorded a surplus of 885 million euros, down by 16 million year-on-year, mainly on account of the higher receipts from the reallocation of ECB monetary income that were recorded in January 2013, compared with the same month of this year.

In January 2014, the capital transfers balance showed a deficit of 13 million euros, while the overall transfers balance (current transfers plus capital transfers) showed a surplus of 872 million euros in 2014, down by 20 million over 2013.

In January 2014, non-residents’ direct investment in Greece showed a net outflow (decline) of 44 million euros (against a net inflow of 556 million euros in the same month of 2013), without any remarkable transaction. Residents’ direct investment abroad recorded a net outflow (increase) of 105 million (compared with a net outflow of 44 million in January 2013). The most remarkable transaction concerned an outflow of 64 million for the participation of Alpha Bank in the capital increase of its subsidiary in Cyprus, Alpha Bank Cyprus.

Under portfolio investment, a net outflow of 2.2 billion euros was recorded (against a net inflow of 882 million euros in January 2013).

At the end of January 2014, Greece’s reserve assets stood at 4.6 billion euros, compared with 5.4 billion at end-January 2013, the Bank of Greece said.

source: ΑΜΝΑ