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Cyprus current account deficit widens in Q1 2025 according to CBC data

The Central Bank of Cyprus has released provisional data on the country’s external statistics for the first quarter of 2025, revealing a further deterioration in its current account balance and international investment position (IIP).

According to the preliminary figures, Cyprus recorded a current account deficit of €1.2 billion in Q1 2025, up from €947 million in the same quarter of 2024. When excluding the impact of Special Purpose Entities (SPEs), which are treated as non-residents for statistical purposes, the adjusted deficit stood at €1.1 billion — slightly narrower than the €1.1 billion deficit recorded in Q1 2024.

Meanwhile, the IIP showed a worsening trend, with Cyprus posting a net liability position of €31 billion in Q1 2025, compared to €29.2 billion at the end of 2024. Adjusted for SPEs, the net liability position stood at €12.9 billion, up from €11.1 billion in the previous quarter.

On the debt side, gross external debt fell to €243.4 billion in Q1 2025 from €246.2 billion in Q4 2024. External assets in debt instruments also declined, to €225.9 billion from €227.3 billion, leading to a decrease in net external debt by €1.4 billion to €17.5 billion.

When adjusted for SPEs, gross external debt reached €59 billion in Q1 2025, slightly lower than €59.7 billion at the end of 2024. The adjusted net external debt indicator showed a marginal improvement, moving further into negative territory to -€24.6 billion, indicating that external assets continued to exceed external liabilities on a net basis.

(Source: CNA)

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