Major decline in the current account deficit

Major decline in the current account deficit

By Sotiris Nikas

Greece’s current account deficit posted a considerable 84.7 percent drop in January compared to the same month last year, according to data released on Thursday by the Bank of Greece.

The Finance Ministry estimates that although this development only concerns the first month of the year, it illustrates a declining trend that could continue for the rest of 2013 and bring the balance to zero.

The current account deficit fell to 221.6 million euros in January 2013 from 1.4 billion euros in January 2012, thanks to the 29.5 percent decline in the trade deficit and the 61.2 percent in interest payments – a result of the Greek debt restructuring (PSI) last March.

The trade deficit fell from 2.3 billion euros to 1.6 billion euros within one year.