Greece’s tourism revenues rose by 12.5% in the first seven months of the year, reaching 12.1 billion euros, according to data from the Bank of Greece (BoG). This growth, combined with an increase in exports, contributed to a 1.4 billion euros reduction in the country’s current account deficit, which fell to 6.7 billion euros over the same period.
Exports of goods excluding fuel grew 4.5% in current prices, while corresponding imports increased by 3.4% (7.0% and 2.7% in constant prices, respectively). Overall, the trade balance deficit narrowed, as the reduction in imports exceeded that of exports in absolute terms. In current prices, exports of goods declined 4.9% (up 0.3% in constant prices), while imports fell 3.6% (down 2.1% in constant prices).
The services balance surplus expanded, largely driven by improvements in travel services, although this was partially offset by a deterioration in the transport balance. Compared with January–July 2024, non-resident tourist arrivals rose 2.6%, while tourism revenues increased 12.5%.
The primary income deficit decreased relative to the same period in 2024, mainly due to lower net payments for interest, dividends, and profits. Meanwhile, the secondary income surplus grew, reflecting lower net government payments, partly offset by declines in net receipts from other sectors of the economy.
The overall current and capital account deficit, representing Greece’s external financing needs, narrowed to 5.4 billion euros compared with last year.
In direct investment, residents’ claims on abroad recorded net inflows of 2.3 billion euros, while foreign direct investments in Greece reached 3.2 billion euros.
In portfolio investment, the reduction in residents’ foreign claims stemmed from a 3.5 billion euros decline in holdings of foreign bonds and bills, partially offset by a 1.8 billion euros increase in equity investments abroad.
Foreign investors’ holdings in Greek securities rose sharply, with 7.9 billion euros in bonds and bills and 1.6 billion euros in domestic corporate equities, reflecting strong external confidence in Greece’s financial markets.
Source: tovima.com
