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Household debt dips to 77% of GDP

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Household debt reached €20 bln, equivalent to 77% of Gross Domestic Product in Q3 2022, marking a slight decrease compared to the previous quarter due to the increase in GDP, according to the Cyprus Central Bank.

Over the same period, the debt ratio for non-financial corporations stood at 150% of GDP.

The assets of households in financial instruments amounted to €58.6 bln at the end of September, of which 61% concerns cash, deposits, and loans, 2% securities, 20% shares and 18% other financial instruments.

Their debt stood at €20.1 bln, with the relative debt ratio at 77% of GDP, showing a slight decrease compared to Q2.

Compared to December 2016, the household debt index shows a noticeable decrease of 39%.

The corresponding assets of non-financial corporations were €66.6 bln with a ratio of 18% cash and deposits, 4% in loans, 0.3% in securities, 47% shares and 31% in other financial assets.

The sector’s debt stood at €39.3 bln, with the debt ratio at 150% of GDP, down 8% from the previous quarter, mainly due to GDP growth.

Compared to December 2016, the debt index of non-financial corporations shows a noticeable decrease of 61%.

In addition, the assets of insurance corporations in terms of purely financial instruments were €4.3 bln, of which 12% was cash and deposits, 3% loans, 22% securities, 46% shares and 18% in other financial data.

Accordingly, investment funds have assets in financial instruments of €7.7 bln invested 5% in cash and deposits, 13% in loans and securities, 79% in shares and 2% in other financial assets.

Investments in financial instruments of pension funds reached €3.8 bln and mainly concern cash and deposits at a rate of 24%, 16% loans, 3% bonds, 44% shares and 13% other financial assets.