In March 2026, the current account deficit narrowed compared with the same month in 2025, mainly due to an improvement in the goods account and, to a lesser extent, in the services and primary income accounts, while the secondary income balance recorded a slight deterioration, according to data provided by the Bank of Greece.
In the first quarter of 2026, the current account deficit widened compared to the same period in 2025, mainly due to the deterioration of the secondary income balance and, to a lesser extent, the primary income balance, which was partially offset by the improvement in the goods and services balances.
Travel receipts, however, are trending positively. They reached 1.67 billion euros in the first quarter , marking an increase of 656 million euros compared to the same period in 2025. In fact, an increase was also recorded in March, the first month of the war in the Middle East. In that month, revenues reached 669 million euros, compared to 430 million euros in March 2025.
In more detail:
Current Account Balance
In March 2026, the current account deficit decreased by €855.2 million compared to March 2025, standing at €2.3 billion.
The goods account deficit narrowed, as exports rose more than imports. At current prices, exports rose by 26.7% (12.3% at constant prices) and imports increased by 7.5% (2.2% at constant prices). However, at current prices, exports of goods excluding fuels increased by 11.1% (8.2% at constant prices), and imports of goods excluding fuels rose by 13.3% (12.6% at constant prices).
The services balance surplus recorded a significant increase, as the travel balance surplus more than doubled and the transport balance surplus rose slightly, while the balance of other services recorded a deficit compared to a surplus in March 2025. Compared to March 2025, arrivals of non-resident travelers increased by 38.1% and related receipts by 55.6%.
The primary income balance deficit was roughly halved compared to the corresponding month of 2025, reflecting a decrease in net payments for interest, dividends, and profits, which was largely offset by the decline in net receipts from other primary income. The secondary income balance deficit widened in March 2026, as a result of the increase in general government net payments, which was partially offset by the decline in net payments to other sectors of the economy outside the general government.
In the first quarter of 2026, the current account deficit widened by €2 billion compared to the first quarter of 2025, reaching €7 billion. The goods account deficit narrowed, as the increase in exports exceeded that of imports. At current prices, exports rose by 4.3% (1.6% at constant prices), while imports recorded a slight increase of 0.8% (unchanged at constant prices). Also, at current prices, exports of goods excluding fuels increased by 3.4% and corresponding imports by 6.2% (1.0% and 5.6% at constant prices, respectively).
The services balance surplus widened due to the more than doubling of the travel balance surplus, which was offset by nearly half due to the reduction in the transport balance surplus and the shift from a surplus to a deficit in the balance of other services. Compared to the first quarter of 2025, arrivals of non-resident travelers increased by 38.3% and related receipts by 64.3%.
The primary income balance deficit increased compared to the first quarter of 2025, due to a decrease in net receipts from other primary income, which was largely offset by a decrease in net payments for interest, dividends, and profits. The secondary income balance surplus narrowed in the first quarter of 2026 compared to the corresponding period of 2025, mainly due to the decline in net receipts in sectors other than general government, sectors of the economy.
Capital Account
In March 2026, the capital account surplus increased compared to the corresponding month of 2025 and stood at 132.9 million euros, reflecting net receipts, as opposed to net payments, in the other sectors of the economy, excluding general government, sectors of the economy, which was almost entirely offset by the recording of nearly zero net payments, compared to net receipts, in the general government sector.
In the first quarter of 2026, the capital account showed a deficit, compared to a surplus in the first quarter of 2025, and stood at 130.1 million euros, mainly due to the recording of nearly zero net payments, compared to net receipts, in the general government sector.
Total Current Account and Capital Account Balance
In March 2026, the deficit of the combined current and capital account (which corresponds to the economy’s need for external financing) decreased compared to the same month of 2025 and stood at 2.2 billion euros.
In the first quarter of 2026, the deficit of the overall current account and capital account balance increased compared to the corresponding period of 2025 and stood at 7.1 billion euros.
Financial Account
In March 2026, in the direct investment category, residents’ claims on non-residents recorded net inflows of €219.6 million, while residents’ liabilities to non-residents recorded net outflows of €600.9 million.
In portfolio investments, the rise in residents’ claims on non-residents reflects a €2.1 billion increase in their holdings of foreign bonds and interest-bearing notes. The decrease in their liabilities is due to a €1.7 billion reduction in non-residents’ holdings of Greek bonds and interest-bearing notes.
In the category of other investments, there was a decrease in residents’ claims on the rest of the world, due to a €4.9 billion contraction in residents’ holdings of deposits and repos abroad, which was partially offset, on the one hand, by a €339.3 million in loans granted by domestic financial institutions to non-residents and, on the other hand, by the statistical adjustment related to the issuance of banknotes (by €247 million).
The increase in their liabilities mainly reflects the rise of 905.0 million euros in non-residents’ placements in deposits and repos in Greece (including the TARGET account) and, to a lesser extent, the statistical adjustment related to the issuance of banknotes (by €247.0 million).
In the first quarter of 2026, in the direct investment category, residents’ claims on non-residents recorded inflows of €1.3 billion, while residents’ liabilities to non-residents, corresponding to non-residents’ direct investment in Greece, recorded outflows of €3.6 billion.
In portfolio investments, the increase in residents’ claims on non-residents is mainly due to a €2.2 billion rise in residents’ holdings of foreign bonds and interest-bearing notes and, to a lesser extent, to the €686.2 million increase in residents’ holdings of shares in non-resident companies. The rise in their liabilities reflects the €3.9 billion in non-residents’ holdings of Greek bonds and interest-bearing notes, which was partially offset by the €1.3 billion decrease in non-residents’ holdings of resident companies’ shares.
In the category of other investments, the increase in residents’ claims on the rest of the world is primarily due to the rise of 1.5 billion in loans granted to non-residents by domestic financial institutions and, secondarily, to the statistical adjustment related to the issuance of banknotes (by 1.1 billion euros), which were offset to some extent by the 1.7 billion euro decrease in residents’ deposits and repos abroad.
The increase in their liabilities is mainly related to the €5.7 billion rise in non-residents’ placements in deposits and repos in Greece (including the TARGET account) and, to a lesser extent, with the statistical adjustment regarding the issuance of banknotes (by €1.1 billion), which were offset to some extent by the €2.1 billion decline in their loan liabilities to non-residents.
At the end of March 2026, the country’s foreign exchange reserves stood at €21.4 billion, compared with €15.7 billion at the end of March 2025.