Cyprus' current account balance improved in the second quarter of this year, with the deficit dropping from €285.4 million in Q2 2023 to €52.9 million, provisional data released by the Central Bank of Cyprus on Thursday show.  

Specifically, according to the preliminary balance of payments data for Q2 2024, Cyprus' current account balance recorded an improvement, with the deficit decreasing from €285.4 million in Q2 2023 to €52.9 million in Q2 2024.

It is added that adjusting the data for the impact of Special Purpose Entities (SPEs), i.e. classifying SPEs as non-residents, the deficit stood at €205.0 million in Q2 2024, compared to a deficit of €541.0 million in Q2 2023.

Regarding the international investment position (IIP), the CBC reports that it improved in Q2 2024, presenting a net liability position of €27,875.8 million, compared to €28,541.7 million in Q1 2024.

It is also added that IIP, after adjusting for the impact of SPEs, recorded a net liability position of €10,010.2 million in Q2 2024, compared to a net liability position of €10,713.9 million in Q1 2024.

Moreover, gross external debt increased to €262,098.6 million in Q2 2024, compared to €260,541.2 million in Q1 2024. In contrast, external assets in debt instruments increased to €249,665.7 million, from €245,593.2 million in Q1 2024, hence net external debt decreased by €2,515.1 million, to €12,432.9 million in Q2 2024.

It is also stated that adjusted for the impact of SPEs, gross external debt reached €61,077.4 million in Q2 2024, compared to €60,016.4 million in Q1 2024, while the corresponding net external debt indicator decreased to -€19,239.7 million in Q2 2024, from -€17,432.9 million in Q1 2024.