BoG – 51% increase in travel receipts in the first half of 2021 – Arrivals decreased

In June 2021, the current account deficit decreased year-on-year, mainly due to an improvement in the services balance and, to a lesser extent, the primary and secondary income accounts, which was partly offset by the deterioration in the balance of goods.

According to the Bank of Greece (BoG), in the first half of 2021, the current account deficit increased compared to the corresponding period of 2020, due to the deterioration in the balance of goods and the secondary income account, which was partly offset by an increase in the surplus of the primary income account and, secondarily, the services balance.

As the BoG points out, there has been an improvement in the travel balance. It is indicative that although the non-resident arrivals decreased by 20.4% in the first half of the year, the relevant receipts increased by 51.0% compared to the same period of 2020, representing only 20% of receipts in 2019. Net transport receipts dropped by 22.3%. Finally, the surplus of the primary income account rose, mainly due to lower interest, dividend and profit payments, while the secondary income account deficit increased.

Current Account Balance

In June 2021, the current account balance showed a deficit of  €1.3 billion, recording a decrease of  €88 million year-on-year.

A rise in the deficit in the balance of goods is due to the fact that imports increased more than exports in absolute terms. Specifically, exports increased by 36.7% and 11.9% at current and constant prices, respectively, and imports rose by 43.4% and 19.0% at current and constant prices, respectively. In particular, non-oil exports of goods increased by 30.0% and 22.5% at current and constant prices and non-oil imports increased by 33.4% and 30.9% at current and constant...