Greek Account Deficit Increased in May

Euro(Greece) – According to the Greek Central Bank, the account deficit in May of 2016 increased to 412 million euro from May of 2015 when it was set at 140 million euro. This comes amid concerns that tourism revenue could also be down during this peak tourist season and since tourism is the biggest industry in Greece, this could impact economy by harming the net balance of payments.

However, the trade deficit also declined a little bit, and the shipping balance did improve. Despite that, there was a decline in the surpluses in the services industry thanks to a decrease in transport receipts. The tourism balance also declined overall and was down by 10.4% despite the fact that visitors numbers have increased somewhat.From January to May of 2016, the deficit was around 3.5 billion euro and was 4.4 billion euro last year during those months in 2015. The services balance wasn’t as strong and there was also a decline in tourism receipts by 6.2%.

Since this is peak season, the country will watch the tourism balance carefully in order to assess how well it does, especially with increased security concerns. There are also concerns that the British exit from the EU will also impact tourism numbers since many tourists are from there. Since tourism is the biggest industry is Greece, the country was hoping that the numbers would be great. Greece has been in a recession since before the first bailout in 2010. Now that they have received the first payment from the third bailout, Greece hopes that the economy will improve soon. However, industries like tourism are a big part of that. Last year, tourism did very well and the country was hoping for a repeat in that performance. Although there are those who believe the bailouts and austerity measures will help Greece in the long term, there are those who are unsure.


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