|Revenue from abroad|
|Services (e. g. tourism)||8,8||8,7|
|Total revenue from abroad||20,7||21,6|
|Services (e. g. tourism)||6,0||5,4|
|Other expense (e. g. interest)||4,4||3,3|
|Total expenses abroad||32,0||28,5|
|Net foreign deficit (current account)||-11,3||-6,9|
The improvement continues: the current account deficit declined 40% (!) during this period! Imports declined 9% whereas exports increased 12%!
The discouraging fact is that – as before – after 3 or 4 years of crisis and so-called austerity measures, Greece as a country is still spending 1.320 Euros abroad for every 1.000 Euros earned abroad. That is a 32% excess of spending over income. This is much worse when only considering the trade account where Greece is importing 2.090 Euros for every 1.000 Euros which it is exporting!
The improvement came despite the fact that revenues from tourism, the very important revenue category, declined 14% over the previous year. On the other hand, one could have expected exports to increase by more than 9% given that the export base is low and that the Euro has devalued significantly over the previous year.
The repetitive question is, of course: have structural reforms been made to make sure that imports will not explode again if and when the economy picks up again? The Bank of Greece’s answer to this question is “no”.