Cyprus' balance of payments and international investment position (IIP) improved, while net external debt decreased in the first quarter of 2024 compared to the corresponding quarter of 2023, according to provisional data released by the Central Bank's Statistics Department on Wednesday.

According to the preliminary balance of payments data for Q1 2024, the current account balance of Cyprus recorded an improvement, with the deficit decreasing from €1,881.7 million in Q1 2023, to €890.2 million, in Q1 2024. The resulting deficit adjusted for the impact of Special Purpose Entities (SPEs), that is, classifying SPEs as non-residents, stood at €1,007.1 million in Q1 2024, compared with a deficit of €1,234.5 million in Q1 2023.

Furthermore, the international investment position (IIP) recorded an improvement in Q1 2024, presenting a net liability position of €28,491.4 million, compared with a net liability position of €28,743.3 million in Q4 2023. With the corresponding data being adjusted for the impact of SPEs, IIP recorded a net liability position of €10,834.1 million in Q1 2024, compared with a net liability position of €10,847.3 million, in Q4 2023.

The gross external debt increased to €172,162 million in Q1 2024 from €171,696.6 million in Q4 2023. The external assets in debt instruments increased to €157,952.6 million, up from €154,615.2 million in Q4 2023. Consequently, the net external debt decreased by €2,872 million to €14,209.4 million in Q1 2024.

Adjusted for the impact of SPEs, gross external debt reached €58,839.3 million in Q1 2024, compared to €58,448.5 million, in Q4 2023. The corresponding net external debt indicator decreased to -€15,464.9 million in Q1 2024, compared with -€15,141.3 million in Q4 2023.