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Greek current accounts deficit down 2.8 pct in Jan-Oct

Δημοσίευση 22 Δεκεμβρίου 2010, 11:06 / Ανανεώθηκε 27 Ιουνίου 2013, 14:55
Greek current accounts deficit  down 2.8 pct in Jan-Oct
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Greece’s current accounts deficit shrank further in the January-October period this year, approaching the annual target set by a memorandum signed with the troika, the Bank of Greece said on Tuesday. The central bank, in a monthly report, said the current accounts deficit fell 2.8 pct to 19.4 billion euros in the 10-month period this year, at 8.0 pct of the country’s Gross Domestic Product, up from a 7.0 pct target set by the memorandum.

Greece’s current accounts deficit shrank further in the January-October period this year, approaching the annual target set by a memorandum signed with the troika, the Bank of Greece said on Tuesday. The central bank, in a monthly report, said the current accounts deficit fell 2.8 pct to 19.4 billion euros in the 10-month period this year, at 8.0 pct of the country’s Gross Domestic Product, up from a 7.0 pct target set by the memorandum.

The cut in the deficit reflected mainly developments in the country’s trade balance as imports fell 12 pct and exports declined only 2.0 pct. The trade deficit fell by 1.095 billion euros in the January-October period reflecting mainly a 2.8 billion euros drop in the trade deficit excluding fuel and ships. More analytically, payments on imports excluding fuel and ships fell by 3.0 billion euros or 11.7 pct, while receipts from exports fell 2.2 pct or 212 million euros. Net payments on fuel imports rose 21.9 pct while net payments for ship purchases rose 11.4 pct.

The services’ surplus rose by 440 million euros despite a 7.0 pct decline in tourism foreign exchange revenues, reflecting a 15.5 pct rise in gross revenue from transport services.

The incomes deficit grew 0.4 pct in the 10-month period, reflecting higher net payments on wages, while net payments on interest, dividends and earnings fell slightly.

The current transfers’ surplus fell by 955 million euros in the January-October period, while the capital transfers’ surplus shrank to 751 million euros from 1.5 billion euros in the same period last year.

The financial transactions balance recorded the liquidation of Greek state bonds by foreign investors (32.2 billion euros in the January-October period). Foreign direct investments recorded a net capital inflow of 1.2 billion euros (from a net inflow of 1.8 billion euros in 2009). Portfolio investments recorded a net outflow of 20.6 billion euros, from a net inflow of 24.3 billion euros last year.