BoG: Current account balance deficit shrunk by 19 million euros

The current account balance recorded a deficit of 295 million euros in January 2014, 19 million less than January 2013.
 
According to the announcement by the Bank of Greece, this development is due solely to the improvement of the income account balance, which showed a surplus against a deficit in January 2013 as the trade deficit increased, and while there was a slight decrease of the surplus of the services and current transfers account balances.
 
The increase in the trade deficit by 105 million euros is due to an increase of net costs for fuel imports, while the trade deficit excluding oil fell as a result of a greater cost reduction for imports compared to the decline in the collection from exports.
 
The 9 million euro decrease in the surplus of the services account balance is the result of the worsening in the balance of other services (mainly due to insurance services), which was largely offset by higher net revenues from transportation (mainly maritime), and travel services. Travel spending in Greece by non-residents increased by 22.4% compared to 2013, reflecting an increase in the number of arrivals of non-residents by 10.6%, according to the frontiers research by the BoG.
 
The current transfers balance showed a surplus of 885 million euros in January 2014, smaller by 16 million euros than in January 2013, mainly due to higher revenues from redistribution of monetary income of the ECB in January last year, compared to the January of this year.