Travel Receipts ‘Save’ Greece’s June Current Account Surplus

Photo © GTP

Stronger net travel receipts in Greece in June drove a 338 million euro improvement in the services surplus with the transport balance also slightly improved, according to data released by the Bank of Greece on Tuesday.

More specifically, the country’s current account balance showed a larger surplus in June against the same month last year, on the back of a smaller trade gap and a stronger services surplus.

According to central bank data, Greece posted an 874 million euro surplus in June 2019, compared to a 9 million euro deficit in June 2018, with the services surplus up to 2,879 million euros from 2,541 euros, and tourism revenues increasing to 2.62 billion euros from 2.25 billion euros in the same month a year earlier.

Transport receipts grew marginally by 0.5 percent.

At the same time, central bank analysts attribute the rise in the services surplus to an improvement in both the travel balance and the transport balance.

Transport receipts – mainly by sea – increased by 7.3 percent while travel receipts grew by 15.3 percent, despite a 0.5 percent year-on-year decline in the number of non-resident arrivals.

According to central bank figures, Greece’s current account showed a 3.9 billion euro deficit in the first half of 2019, down by 759 million  euros year-on-year reflecting a rise in the services surplus and an improvement in the primary and the secondary income accounts.

Meanwhile, a slowdown in export growth, combined with a sustained increase in imports led to the deficit expansion of the balance of goods.

Total exports of goods increased by 1.6 percent at current prices with total imports of goods up by 4.2 percent at current prices.

The bank data also reveals a 242 million euro increase in residents’ net external assets in H1 2019, while residents’ net external liabilities, which represent non-residents’ direct investment in Greece, rose by 2.0 billion euros.