Current account deficit increased in Q2 of 2022

Cyprus' current account deficit increased in the second quarter of 2022, while the international investment position (IIP) showed a slight deterioration, with the net external debt increasing by €1.61 billion.

According to provisional data by the Statistics Department of the Central Bank of Cyprus for external statistics (balance of payments, international investment position and external debt) for the second quarter of 2022 (2022 Q2), the current account balance of Cyprus recorded a deterioration, with the deficit increasing from €445.3 million in 2021 Q2, to €1,037.5 million, in 2022 Q2.

The resulting deficit when adjusting the data for the impact of Special Purpose Entities (SPEs), that is, classifying SPEs as non-residents, stood at €713.5 million in 2022 Q2, compared with a deficit of €474 million in 2021 Q2.

Furthermore, the international investment position (IIP) recorded a slight deterioration at the end of 2022 Q2, presenting a net liability position of €27,642 million, compared with a net liability position of €27,490.5 million in 2022 Q1.

With the corresponding data being adjusted for the impact of SPEs, IIP recorded a net liability position of €9,649.6 million at the end of 2022 Q2, compared with a net liability position of €9,884.9 million, at the end of the previous quarter.

Moreover, the gross external debt increased to €162.924,4 million in 2022 Q2 from €161,529.1 million in 2022 Q1. On the other hand, external assets in debt instruments decreased to €127,207.7 million, down from €127,424.1 million in 2022 Q1. Consequently, net external debt increased by €1,611.6 million to €35,716.7 million, over 2022 Q2.

Adjusted for the impact of SPEs, gross external debt reached €62,653.1 million at the end of 2022 Q2, compared to €65,206.2 million, at the end of 2022 Q1. The corresponding net external debt indicator reached to -€8,526.1 million, compared with -€5,932.1 million at the end of the previous quarter.