Bank of Greece: 1.4 billion deficit in current account balance in May

In May 2021, the current account showed a deficit of €1.4 billion, up by €477 million year-on-year.

The increase in the deficit of the balance of goods is accounted for by a larger rise in imports, in absolute terms, than in exports. However, exports increased by 59,6% and 25,9% at current and constant prices, respectively, while imports rose by 56,2% and 27,3% at current and constant prices, respectively. In particular, non-oil exports of goods grew by 29.5% and 23.2% at current and constant prices and non-oil imports by 40.4% and 37.3% at current and constant prices, respectively.

The surplus in the services balance registered a small decline, which was due to a deterioration in the transport balance. By contrast, the travel balance and the other services balance improved year-on-year. Non-residents' arrivals and the relevant receipts rose by 413.7% and 286.2%, respectively, as a result of base effects following their low levels in 2020. The surplus of the transport balance decreased by 30%.

In May 2021, the surplus of the primary income account more than doubled, mainly on account of a year-on-year shift from net payments to net receipts of interest, dividends and profits and, secondarily, owing to an increase in net receipts from other primary income. The secondary income account deficit fell year-on-year, chiefly as a result of lower general government payments.

In the January-May 2021 period, the current account deficit recorded an increase of €534 million year-on-year and stood at €6.2 billion.

A rise in the deficit of the balance of goods is due to the fact that imports increased more than exports in absolute terms. In more detail, exports increased by 27.8% and 15.5% at current and constant prices, respectively, while imports...