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Friday, May 30, 2014

Greece's Current Account: January - March 2014

Much has been written about the phenomenal reduction in Greece's current account decifit in the 1st quarter of 2014: it could be reduced by more than half from 2,2 BEUR to 1,1 BEUR. While that is a sensational improvement, an analysis of the details does no shake one out of bed. Essentially, everything has remained more or less flat relative to a year ago except the current transfers, and current transfers have really not much to do with the development of the real economy.

What really stands out, and what would definitely require explanation, is the fact that Greece's exports other than oil & shipping have remained more or less flat for a very long time by now. These 'other exports' are the exports which should reflect that Greece is becoming competitive!

(in MEUR)


January-March






2014 2013
Revenue from abroad


Exports 5.448 5.447

Services (e. g. tourism) 4.637 4.146

Other income 897 878

Current transfers 3.179 2.779


---- ----

Total revenue from abroad 14.161 13.250




Expenses abroad


Imports 10.007 9.969

Services (e. g. tourism) 2.696 2.669

Other expense (e. g. interest) 1.537 1.762

Current transfers 970 1.088


---- ----

Total expenses abroad 15.210 15.488








Net foreign deficit (current account) -1.049 -2.238








Trade balance -4.559 -4.522
Services balance 1.941 1.477
Other balance -640 -884
Current transfer balance 2.209 1.691


---- ----
Net foreign deficit (current account) -1.049 -2.238

Link to the Bank of Greece

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