Greece’s current account balance showed a significant improvement in the January-November period last year, with the current account deficit falling by 73 pct to 5.1 billion euros, compared with the corresponding period in 2011, the Bank of Greece said on Friday.

The central bank, in a report, attributed this development mainly to a signficant reduction of the trade deficit by 6.7 billion euros, a fall in the incomes deficit by 5.4 billion euros and increases in the current transfers and services surpluses (by 1.1 billion and 253 million euros, respectively).

The current account balance showed a deficit of 850 million euros, down by 62.8 pct year-on-year in November. The trade deficit narrowed by 828 million euros, as a result of a 352 million decrease in the trade deficit excluding oil and ships, as well as declines of 372 million and 103 million in the net oil import bill and the net import bill for ships, respectively. The trade deficit excluding oil and ships shrank almost exclusively due to the reduced import bill (down by 349 million euros or 16.2 pct), given that export receipts remained almost unchanged (having recorded only a small increase of 0.2 pct).

In the January-November 2012 period, the current account deficit contracted by 13.4 billion euros or 72.7 pct year-on-year, to 5.1 billion. This development mainly reflects a significant decline of 6.7 billion euros in the trade deficit and a 5.4 billion euros drop in the income account deficit, as well as increases of 1.1 billion and 253 million in the surpluses of the current transfers balance and the services balance, respectively.

In more detail, the trade deficit shrank as a result of a 3.8 billion euros (or 32.6 pct) decline in the trade deficit excluding oil and ships and a drop of 2.2 billion euros (or 68.2 pct) and 693 million euros (or 6.6 pct) in net payments for purchases of ships and in the net oil import bill, respectively. Receipts from exports of goods excluding oil and ships rose by 2.4 pct, while the corresponding import bill fell at a much faster pace (14.6 pct).