Greece - Balance of payments



Because it imports more than twice the value of its exports, Greece has registered chronic annual deficits in its balance of payments. The major contributors to Greece's foreign exchange earnings are tourism, shipping services, and remittances from Greek workers abroad. Greece's relatively small industrial base and lack of substantial investment since the mid-1990s limited the country's export potential. Greece's productive base expanded in 1999 and 2000, however, in part due to a thriving stock exchange, and low interest rates. A devaluation of the drachma in 1998 and its inclusion in the euro zone in 1999 restored Greek competitiveness.

The US Central Intelligence Agency (CIA) reports that in 2002 the purchasing power parity of Greece's exports was $12.6 billion while imports totaled $31.4 billion resulting in a trade deficit of $18.8 billion.

The International Monetary Fund (IMF) reports that in 2001 Greece had exports of goods totaling $10.6 billion and imports totaling $29.7 billion. The services credit totaled $19.5 billion and debit $11.6 billion. The following table summarizes Greece's balance of payments as reported by the IMF for 2001 in millions of US dollars.

Greece

Current Account -9,400
Balance on goods -19,087
Balance on services 7,867
Balance on income -1,767
Current transfers 3,587
Capital Account 2,153
Financial Account 537
Direct investment abroad -611
Direct investment in Greece 1,585
Portfolio investment assets -474
Portfolio investment liabilities 9,012
Other investment assets -1,539
Other investment liabilities -7,511
Net Errors and Omissions 1,011
Reserves and Related Items 5,699

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