Greece: First annual current account surplus since 1948‏

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 according to ANA-MPA, 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.