Cyprus trade deficit breaches 30% of GDP in 2006

But Cyprus pound still rock steady

 

Total imports rose by 7.3% to CYP 3,182.7 mln in 2006, while total exports fell by 10.5% to only CYP 643.98 mln in the same period, according to preliminary figures for December.

The trade deficit in 2006 therefore rose by CYP 291 mln to CYP 2.5 bln (around EUR 4.3 bln), or more than 30% of GDP, compared with CYP 2.2 bln, or 28.6% of GDP in 2005.

Cyprus’s big trade deficit is normally covered by a large surplus on invisibles, including income from tourism and international business.

Although recent data for invisibles are not yet available, the stability of the Cyprus pound suggests that foreign exchange inflows from these and other items on the balance of payments were enough to offset the trade deficit, as they have been in previous years.

Exports (or “dispatches”) within the EU accounted for 65% of total exports, while imports from EU countries amounted to 66% of all imports.