Current account balance deteriorates in 2020

The current account balance of Cyprus recorded a deterioration, with the deficit increasing from €1,406.0 million in 2019, to €2,476.4 million, in 2020, according to the Central Bank of Cyprus.

The Statistics Department of the Central Bank of Cyprus released on Wednesday the provisional data for external statistics (balance of payments, international investment position and external debt) for the year 2020.

According to the preliminary balance of payments data for 2020, the current account balance of Cyprus recorded a deterioration, with the deficit increasing from €1,406.0 million in 2019, to €2,476.4 million, in 2020.

The resulting deficit adjusted for the impact of Special Purpose Entities (SPEs), that is, classifying SPEs as non-residents, stood at €2,384.5 million in 2020, compared with a deficit of €1,510.0 million in 2019.

The international investment position (IIP) recorded a deterioration in 2020, presenting a net liability position of €29,446.0 million, compared with a net liability position of €27,252.4 million in 2019.

With the corresponding data being adjusted for the impact of SPEs, IIP recorded a net liability position of €10,837.4 million in 2020, compared with a net liability position of €8,980.0 million, in 2019.

The gross external debt increased to €189,307.3 million in 2020 from €189,212.0 million in 2019. The external assets in debt instruments increased to €112,421.0 million, up from €109,001.9 million in 2019. Consequently, net external debt decreased by €3,323.8 million to €76,886.2 million, in 2020.

Adjusted for the impact of SPEs, gross external debt reached €59,769.4 million in 2020, compared to €60,572.6 million, in 2019.