Cyprus’ external statistics deteriorate in the third quarter of 2022

The main indicators concerning Cyprus’ economic relations with foreign countries during the third quarter of 2022 showed a deterioration, according to the preliminary data of external statistics, released by the Central Bank of Cyprus (CBC).

According to the preliminary balance of payments data for 2022 Q3, the current account balance of Cyprus recorded a deterioration, with the deficit increasing from €132.8 million in 2021 Q3, to €435.7 million, in 2022 Q3.

The deterioration in the current account deficit resulted from the increase in goods trade deficit (from -€1,053.7 million to -€1,563.6 million) and, to a much lesser extent, the secondary income (from €9.4 million to -€68.1 million). The aforementioned developments were partly offset by increased surplus in services (from €1,502.6 million to €1,713.7 million) and decreased deficit in primary income (from -€591.0 million to -€517.8 million).

The international investment position (IIP) recorded a slight deterioration at the end of 2022 Q3, presenting a net liability position of €28,063.5 million, compared with a net liability position of €27,642.0 million in 2022 Q2.

This small deterioration was mainly due to the decrease in direct investment and to a lesser extent in financial derivatives. On the other hand, portfolio investment, other investment and reserve assets increased and thus, mitigated the above decreases.

The gross external debt significantly increased to €181,011.0 million in 2022 Q3 from €162,924.4 million in 2022 Q2. On the other hand, external assets in debt instruments increased to €150,365.3 million, up from €127,207.7 million in 2022 Q2. Consequently, net external debt decreased by €5,071.0 million to €30,645.7 million in 2022 Q3.

The increase in the gross external debt largely resulted from a debt increase in all institutional sectors except General Government. Large increases were also recorded in direct investment intercompany lending.

The increase of external assets in debt instruments resulted from an increase in all sectors, mainly by the Central Bank and Other Sectors.

Source: Cyprus News Agency