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.

CNA/TNE/EPH/2025

ENDS, CYPRUS NEWS AGENCY