Cyprus sees improvement in balance of payments, international investment position

Cyprus recorded improvements in its balance of payments and international investment position (IIP) in the first quarter of 2024 compared to the same period in 2023, along with a reduction in net external debt.

This is according to preliminary data released by the Central Bank of Cyprus (CBC) this week.

According to the CBC’s report for Q1 2024, Cyprus’ current account balance improved, with the deficit reducing from €1.88 billion in Q1 2023 to €890.2 million in Q1 2024.

Adjusting the figures for the impact of special purpose entities (SPEs) – categorising SPEs as non-residents – the deficit stood at €1 billion in Q1 2024, down from €1.23 billion in Q1 2023.

The international investment position (IIP) also showed improvement in Q1 2024, presenting a net liability position of €28.49 billion, compared to €28.74 billion in Q4 2023.

When adjusted for the impact of SPEs, the net liability position stood at €10.83 billion in Q1 2024, compared to €10.84 billion in Q4 2023.

Furthermore, the CBC reported that gross external debt increased to €172.16 million in Q1 2024, from €171.69 million in Q4 2023.

On the other hand, external assets in debt instruments rose to €157.95 million, up from €154.61 million in Q4 2023.

Consequently, net external debt decreased by €2.87 billion, reaching €14.2094 billion in Q1 2024.

Adjusted for the impact of SPEs, gross external debt stood at €58.83 billion in Q1 2024, up from €58.44 billion in Q4 2023, while net external debt decreased to -€15.46 billion in Q1 2024 from -€15.14 billion in Q4 2023.