Tourist euro bolsters Greek economy

greeceTourists have helped nudge the Greek economy into surplus for the first time since official data began.

Figures from the Bank of Greece showed the difference between the money going into and coming out of the nation was €1.24bn (£1bn) last year.

This was the first time since 1948 that a surplus was recorded. It marks a vast improvement over 2012 when instead there was a deficit of €4.6bn.

Record spending by tourists was up by 15% to €12bn.

The Bank of Greece said there had been in addition a significant fall of some 4.5% in imports and a slight increase in exports. Exports were helped by the tragedy of lower wages for Greek workers.

When there is a deficit in the current account, the difference has to be augmented by borrowing and any investment from abroad.

Economists expect Greece to repeat a surplus this year, but point out that it is in its sixth year of contraction. The harsh austerity measures have seen the economy shrink by nearly 25% in four years.

"Sustaining the surplus in the longer term will depend on whether the economy maintains its competitiveness and on its capacity to increase import substitution with domestic production," said Eurobank economist Platon Monokroussos.

"Wage growth must stay in line with productivity gains."