Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
I realised something.

Considering that Greece has 15% of GDP from tourism, is not current accout more relevant then trade balance?

Then instead of a trade deficit of 23 billion USD in 2010 (43 billion 2009), we are looking at 17 billion current account deficit in 2010 (34 in 2009).

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by A swedish kind of death on Tue Apr 5th, 2011 at 03:08:28 PM EST
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Tourism should enter into the balance of trade.

Current accounts, on the other hand, include interest payments, some of which would, obviously, cease. Unless I am mistaken on the English translations of the terminology.

- Jake

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by JakeS (JangoSierra 'at' gmail 'dot' com) on Tue Apr 5th, 2011 at 07:05:16 PM EST
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Actually current accounts balance includes balance in services (that means tourism and shipping as well if I'm not mistaken - a big deal), incomes, capital transfers etc. Here's the Bank of Greece's latest (January 11) report on the current account balance.

Note also that less than half of that 15%GDP for tourism is foreign tourism. And while foreign tourism could indeed boom under a cheaper currency, domestic tourism would tank (actually is tanking already)

The road of excess leads to the palace of wisdom - William Blake

by talos (mihalis at gmail dot com) on Tue Apr 5th, 2011 at 08:11:59 PM EST
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