Cyprus’ current account balance in 2023 deteriorated significantly with the deficit rising to pound 3.61 billion, corresponding to 12.1% of the island’s GDP, Central Bank of Cyprus has said.
According to the preliminary balance of payments data for 2023 released by the CBC, the current deficit rose by an annual 64% compared with a deficit of pound 2.20 billion in 2023, or 7.9% of Cyprus’ GDP.
Adjusted for the impact of Special Purpose Entities (SPEs), that is, classifying SPEs as non-Cypriot residents, the deficit stood at pound 3.43 billion in 2023, compared with a deficit of pound 2.54 billion in 2022, which corresponds to 11.5% and 9.2% of the country’s annual GDP, respectively, the CBC added.
Cyprus’ international investment position (IIP) recorded a deterioration in 2023, presenting a net liability position of pound 28.74 billion, compared with a net liability position of pound 26.71 billion in 2022.
Adjusting for SPEs Cyprus’ IIP recorded a net liability position of pound 10.85 billion in 2023, comp
ared with a net liability position of pound 9.36 billion in 2022.
The gross external debt increased to pound 171,696.6 million in 2023 from pound 169,326.4 million in 2022.
According to the CBC, the external assets in debt instruments increased to pound 154,615.2 million, up from pound 147,388.9 million in 2022.
Consequently, the net external debt decreased by pound 4,857 million to pound 17,081.4 million in 2023, the CBC added.
Adjusted for the impact of SPEs, gross external debt reached pound 58,448.5 million in 2023, compared to pound 58,444.7 million, in 2022 with the corresponding net external debt indicator decreased to -pound 15,141.3 million in 2023, compared with -pound 11,861.7 million in 2022, the CBC said.
Source: Cyprus News Agency