Greece’s current account surplus narrows in August as services surplus declines

Greece’s current account surplus narrowed in August on an annual basis. According to the Bank of Greece, the country’s current account surplus dropped by EUR 379 million year-on-year. The narrowing in the surplus is mainly due to the decline in surplus of services balance and because of the decline in the secondary and primary income accounts. The surplus in August 2016 dropped to EUR 1.8 billion from EUR 2.2 billion in August 2015.

The services surplus declined by EUR 245 million due to lower net travel receipts. In particular, travel receipts dropped 9.2 percent despite a 1.8 percent rise in non-residents’ arrivals. Tourism revenues fell from EUR 3.46 billion to EUR 3.16 billion. On the contrary, net transport receipts rose on an annual basis, owing to a rebound in the air transport balance, whereas the sea transport surplus fell to EUR 299 million.

The balance of goods deficit narrowed on an annual basis in the month, thanks to the considerable rebound in the oil balance and to the increase in non-oil exports. The increase in non-oil exports was countered by the rise in non-oil imports.

The overall balance of goods and services recorded a surplus of EUR 2.2 billion, a decline by EUR 236 million year-on-year.