**Tourism Revenue Drives Balance of Payments Growth in Greece**
The Bank of Greece has released data indicating a significant boost in the country's tourism sector, which has played a crucial role in shaping the balance of payments for the first half of 2026. According to the report, Greek travel receipts surged by 14.8% compared to the same period in 2025, totaling approximately €8.8 billion, up from €7.66 billion.
In June alone, travel revenues saw a modest increase of 1.2%, reaching €3.48 billion, compared to €3.43 billion in June of the previous year. This rise in revenue is attributed to a notable increase in non-resident tourist arrivals, which grew by 15.4% in the first six months of the year. Specifically, June recorded a 6.9% increase in arrivals, reflecting the ongoing recovery and appeal of Greece as a travel destination.
Despite the positive trends in tourism, the overall current account deficit widened to approximately €9.5 billion in the first half of 2026, an increase of around €1 billion from the previous year. However, the current account deficit for June showed improvement, halving compared to June 2025, and falling to €602.8 million.
A closer examination of the goods sector reveals a shrinking deficit, as export growth significantly outpaced the rise in imports. In current prices, first-half exports of goods rose by 16.1%, while imports increased by a more modest 4.5%. June alone saw a remarkable 27.5% jump in goods exports, while imports rose by 7.3%.
The services surplus, bolstered by improved travel receipts, expanded over the six-month period. However, this growth was partially offset by a decline in transport services. In June, the services surplus narrowed slightly as all sub-balances recorded a decline, indicating some challenges within the sector despite the overall positive tourism figures.
The primary income deficit showed signs of narrowing in June, primarily due to lower net payments for interest, dividends, and profits. However, the six-month primary income deficit widened as net receipts from other primary income sources fell by approximately 50%. The secondary income balance also posted a deficit in the first half of 2026, reversing a surplus from the previous year, driven by reduced net receipts in non-general government sectors.
The capital account surplus decreased in the first half of the year, reflecting lower net general government receipts. The capital account deficit slightly increased in June to €22.9 million. When combining the current and capital accounts, Greece's external financing needs were halved in June to €625.7 million, although they expanded to €9.2 billion for the first six months.
In terms of foreign investment, Greece saw foreign direct investment liabilities reach €6.9 billion in the first half of the year, which included €778.1 million in June. Notably, non-residents increased their holdings of Greek bonds and treasury bills by €9.1 billion during this period, with a €3.5 billion rise occurring in June alone. Financial liabilities were also influenced by an early repayment under the Greek Loan Facility, contributing to a €9.1 billion reduction in foreign loans to residents.
As of the end of June 2026, Greece's reserve assets had risen to €19.5 billion, up from €15.3 billion recorded a year earlier. This increase in reserve assets reflects a strengthening of Greece's financial position amidst ongoing economic challenges.
Overall, while the tourism sector has shown robust growth, contributing positively to Greece's balance of payments, other factors such as widening deficits in various accounts and shifts in foreign investment highlight the complexities of the nation's economic landscape. The ongoing recovery in tourism is a promising sign, but it is essential for policymakers to address the broader economic challenges to ensure sustainable growth moving forward.