Cyprus’ current account balance deteriorated in the third quarter of 2018 (2018Q3), recording a surplus of €52 million, compared with a surplus of €261.5 million in 2017Q3.
According to an announcement by the Central Bank of Cyprus (CBC), this development was mainly attributed to the trade balance of goods, with exports of goods, mostly ships, recording a decrease compared with 2017Q3 while imports of goods 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 €22,382.5 million, compared with €22,582.7 million in the previous quarter. The decrease in Cyprus’ net liabilities was due to the improvement in direct investment and other investment. This was mitigated by the worsening recorded in portfolio investment and derivatives.
Gross external debt reached €103,957.2 million in 2018Q3, compared with €101,246.8 million in 2018Q2. All main categories of external debt increased with those of general government, other sectors and monetary financial institutions (excluding the CBC) recording the higher increases.