Nicosia: The Central Bank of Cyprus has released provisional data on the country’s external statistics for the first quarter of 2025, revealing a further deterioration in its current account balance and international investment position (IIP).
According to Cyprus News Agency, the preliminary figures show that Cyprus recorded a current account deficit of £1.2 billion in Q1 2025, up from £947 million in the same quarter of 2024. When excluding the impact of Special Purpose Entities (SPEs), which are treated as non-residents for statistical purposes, the adjusted deficit stood at £1.1 billion, slightly narrower than the £1.1 billion deficit recorded in Q1 2024.
Meanwhile, the IIP showed a worsening trend, with Cyprus posting a net liability position of £31 billion in Q1 2025, compared to £29.2 billion at the end of 2024. Adjusted for SPEs, the net liability position stood at £12.9 billion, up from £11.1 billion in the previous quarter.
On the debt side, gross external debt fell to £243.4 billion in Q1 2025 from £246.2 billion in Q4 2024. External assets in debt instruments also declined, to £225.9 billion from £227.3 billion, leading to a decrease in net external debt by £1.4 billion to £17.5 billion.
When adjusted for SPEs, gross external debt reached £59 billion in Q1 2025, slightly lower than £59.7 billion at the end of 2024. The adjusted net external debt indicator showed a marginal improvement, moving further into negative territory to -£24.6 billion, indicating that external assets continued to exceed external liabilities on a net basis.