International investment position of Cyprus deteriorates in Q1 2017

The international investment position of Cyprus recorded a deterioration in the first quarter of 2017, showing a net liability position at Euros 23.057 million, compared with Euros 22.453 million the previous quarter.

According to the Central Bank of Cyprus (CBC), the increase in net liabilities of Cyprus is mainly due to the deterioration of direct investment and, to a lesser extent, other investment in spite of the improvement recorded in portfolio investment.

The gross external debt of Cyprus reached Euros 108.322 million in 2017Q1, compared with Euros 106.912 million in 2016Q4. The specific deterioration is due to the increase of the debt of Monetary Financial institutions (excl. the Central Bank) and, to a lesser extent, the increase in intercompany lending.

?he current account (CA) balance of Cyprus deteriorated in 2017Q1, recording a deficit of Euros 721,1 million, compared with a surplus of Euros 73,2 million in 2016Q1.

This deterioration is mainly due to the trade balance of goods and more specifically exports deteriorated mainly due to lower exports of ships in 2017Q1, and imports increased as a result of an increase in all major categories of import of goods, with the category of transport equipment having the biggest change, due to increased imports of ships, aircraft and cars.

The remaining categories of the CA (services, primary income and secondary income) recorded small improvements which only mitigated, to a small extent, the deterioration recorded in goods.

Source: Cyprus News Agency