05.Oct .2020 18:17

Current account deficit doubled in 2Q20

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Current account deficit came in at 9.4% of GDP or US$ 337.1mn (+97.3% y/y), according to NBG.

Merchandize trade deficit, traditionally the major contributor to deficit creation, declined by 39.8% y/y to US$ 530.1mn, as exports fell by 23.4% y/y, while imports were down by 30.3% y/y. Positive service balance declined by 98.4% y/y to US$ 9.0mn (0.3% of GDP), reflecting the drop of tourism inflows due to COVID pandemic.

Surplus in current transfers amounted to US$ 339.1mn (9.5% of GDP, up 1.4% y/y). Together, services and transfers financed 66% of the trade deficit. Notably, other investments at US$ 603mn were key funding source of CA deficit and net FDI stood at US$ 148.9mn.The international reserves were up by US$ 190.6mn.