CYPRUS: Annual surplus declines 80% in Q3 due to trade balance

Cyprus’ current account balance deteriorated in the third quarter of 2018, recording a surplus of €52 mln from €261.5 mln in the same period of 2017.

According to the Central Bank of Cyprus (CBC), this development was mainly attributed to the trade balance of goods, with exports recording a decrease compared with 2017Q3 while imports increased.

Services also decreased, albeit to a lesser extent, while primary and secondary income recorded small increases.

Cyprus’ international investment position recorded a small improvement in 2018Q3, showing a net liability position at €22.38 bln, from €22.58 bln in the previous quarter.

The decrease in Cyprus’ net liabilities was due to the improvement in direct investment and other investments. This was mitigated by the worsening recorded in portfolio investment and derivatives.

Gross external debt reached €103.95 bln in Q3, from €101.24 bln in Q2.

All main categories of external debt increased with those of general government, other sectors and monetary financial institutions recording the highest increases.