Greece’s current account surplus grew by 42.4 percent in the January-July period this year, compared with the equivalent period in 2013, reported the Bank of Greece on Monday. The Central Bank said that the total account surplus reached nearly 567 million euros in the seven-month period. The equivalent surplus was 399 million euros in 2013. The rise is attributed to improving balances of services and incomes. On the other hand, the country’s trade deficit grew by 984 million euros in the January-July period. Exports – excluding ships and fuel – totaled 8.4 billion euros, a 4.3 percent increase from 2013. Imports totaled 12.96 billion euros, up 1.0 percent from 2013. The 1.7 billion euro rise in the surplus of the services balance owes to increased net transport receipts, as well as higher net receipts from travel and other services. As regards travel-spending by non-residents in Greece, a year-to-year increase of 13.8 pct was recorded, reflecting a 20.8 pct rise in non-resident arrivals, the Central Bank stated in its report. The income account deficit fell by 534 million euros, largely as a result of lower net interest payments. Finally, the current transfers balance showed a surplus of 2.8 billion euros, down by 1.1 billion euros year-to-year, mainly as a result of a decline in general government transfer receipts under the Securities Markets Programme (SMP) in July, mentioned above. In the January-July 2014 period, the overall transfers balance – current transfers plus capital transfers – recorded a surplus of 4.6 billion euros, down by 2 billion year-to-year. In the January-July 2014 period, non-residents’ direct investment in Greece showed a net inflow of 1.0 billion euros, while residents’ direct investment abroad showed a net outflow (increase) of 304 million. Under portfolio investment, a net inflow of 3.8 billion euros was recorded, mainly on account of a rise in non-residents’ holdings of shares in Greek firms. This development was partly offset by a net increase in residents’ holdings of foreign bonds, treasury bills and financial derivatives. Under “other” investment, a net outflow of 5.6 billion was recorded mainly on account of a decline (outflow) in non-residents’ deposit and repurchasing holdings in Greece, which was largely offset by a net increase (inflow) in the outstanding debt of the public and the private sector to non-residents and a net decrease (inflow) in residents’ deposit and repurchasing holdings abroad. At the end of July 2014, Greece’s reserve assets stood at 5.0 billion euros, compared with 4.6 billion at the end of July 2013.
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