Greece's current account deficit increased by 34.4 percent in 2005 to 14.047 billion euros (16.786 billion U.S. dollars), compared with the previous year, totaling 7. 8 percent of the country's gross domestic product, the Bank of Greece said on Monday.

The central bank's governor Nikos Garganas sounded the alarm bell last Friday over developments in the current account balance, saying that "it highlighted a serious competitiveness problem facing the Greek economy."

The worsening balance mainly reflected high spending to servicing the public debt, with the outflow of interest, dividends and profits up 25.5 percent to more than 8.0 billion euros (9.56 billion dollars), from 6.34 billion euros in 2004 (7.58 billion dollars). As a result, the income balance showed a deficit of 1. 263 billion euros (1.51 billion dollars) in 2005, up 30.5 percent from 2004.

The trade deficit rose 8.2 percent last year despite a jump in international oil prices. Excluding oil and ships, the trade deficit fell by 341 million euros (407 million dollars) in 2005.

Source: Xinhua