9% of GDP may approach its deficit Current account balance in 2022, according to her estimates Eurobank in yesterday’s 7 Days Economy, based on the latest data from the Bank of Greece.

Bank analysts note that this will be the third consecutive year of high external balance deficits, while the OECD predicts that it will persist in 2023 and 2024.

In addition, they note that total investment in fixed assets and inventories exceeds total savings, and the difference is covered by external borrowing.

Analyzing the reasons for the 74.9% increase in the current account deficit between January and November, reaching 17.5 billion euros at current prices, the release said the worsening goods deficit more than offset the improvement in the balance of services. In particular, the deficit in the balance of goods increased by 53.8% to 36 billion euros, while the surplus in the balance of services increased by 53.6% to 19.1 billion euros.

As noted, the trade deficit increased by 58% due to fuel and by 40% due to goods other than fuel and ships. The above result is to some extent explained by the growth of domestic demand, as well as rising prices for fuel, raw materials, food and other imported goods.

On the other hand, the services balance surplus was dominated by tourism, as the travel balance surplus was €15.6 billion in the 11 months January to November, up 67.7% year-on-year.

According to the data of the Bank of Greece, Eurobank calculations show that in the 11th month the current account deficit was 8.3%, and for the whole year it could approach 9% of GDP.

In addition, the analysis says that fixed investment increased to 12.6% of GDP in the 9 months from January to September, but remained well below the 22.5% of eurozone GDP. Total investment, including reserves, was 20.1% of GDP compared to 24.5% of GDP in the euro area. On the other hand, savings were 12.7% in 9 months, well below the 24.1% (based on 2021 annual data) in the eurozone.