Cyprus’ preliminary current account deficit deteriorated in the third quarter of 2023 to €517 million from €399 million in the respective period of last year, marking an annual increase of 29.6%, according to provisional external statistics data published by the Central Bank of Cyprus (CBC) on Friday.

However, when adjusted for the impact of Special Purpose Entities (SPEs), that is, classifying SPEs as non-residents, the current account deficit drops to €408.9 million in Q3 2023, compared with a deficit of €548.8 million in Q3 2022, the CBC added.

Furthermore, Cyprus’ international investment position (IIP) recorded an improvement in Q3 2023, presenting a net liability position of €28,267.5 million, compared with a net liability position of €28,658.3 million in Q2 2023.

With the corresponding data being adjusted for the impact of SPEs, IIP recorded a net liability position of €10,130.7 million in Q3 2023, compared with a net liability position of €10,710.7 million, in Q2 2023.

The gross external debt decreased to €162,317.2 million in Q3 2023 from €169,614.3 million in Q2 2023. The external assets in debt instruments increased to €152,975.5 million, up from €146,830.5 million in Q2 2023.

Consequently, the net external debt decreased by €13,441.7 million to €9,342.1 million in Q3 2023, the CBC added.

Adjusted for the impact of SPEs, gross external debt amounted to €58,261.2 million in Q3 2023, compared to €58,513.4 million, in Q2 2023.

The corresponding net external debt indicator decreased to -€14,534.8 million in Q3 2023, compared with       -€12,822.1 million in Q2 2023, the CBC added.