BoG: Surplus on current account of balance decreased in August

BoG: Surplus on current account of balance decreased in August

 

By Christos T. Panagopoulos –

The Central Bank of Greece (BoG) announced on Friday a reduction of the surplus on the current account of balance in August by 412 million euros, amounting to 1.2 billion euros.

According to the same source, this decrease is mainly due to the increase in the deficit of income and the emergence deficit on current transfers, in which a surplus had been spotted in August 2012, while trade deficit had increased. These developments were partly offset by the increase in the surplus of the services balance.

According to the BoG, the most important positive development in August was the improvement in the travel balance, mainly due to the increase of tourist revenues. Moreover, the trade deficit excluding oil and ships narrowed as the rise in receipts from exports continued as well as the reduction of bills in imports. However, these developments did not offset the deterioration in the balance of oil and ships, resulting in the increase in the overall trade deficit.

Concerning the period January – August 2013, the current account balance recorded a surplus of 1.6 billion euros, against a deficit of 3.7 billion in comparison with the corresponding period of 2012. This was mainly due to the significant reduction in the trade deficit by 2.9 billion euros and, consecutively, to the rising of the surpluses in current transfers by 2.1 billion and in services by 961 million, while increased income deficit.

In particular, the reduction of the trade deficit is mainly due to the significant reduction in payments for imports of goods of all classes and, for the remainder, to the increase in export revenues by 6.2%.

Apart from oil exports which have the most significant contribution to this rise, food and beverage, metals and non-metallic minerals also played a major role.

Furthermore, the increase in the surplus of the services balance is mostly due to the increase in net travel receipts and posted net revenues from other services, compared with net payments in the same period of 2012, developments which offset lower net transport receipts.

Finally, the current transfers balance showed a surplus of 3.7 billion euros, higher by 2.1 billion than the first eight months of 2012. This development is mainly due to the increase in net transfers of general government (mainly from the EU).

Source: Bank of Greece