Cyprus current account deficit down in Q3 2019

Cyprus‘ current account’s deficit fell in the third quarter of 2019 on an annual basis, provisional data the Central Bank of Cyprus, released on Monday, show.

In particular, according to the provisional data for external statistics, the current account in the third quarter of 2019 recorded a deficit of €11.9 million, compared with a deficit of €37.6 million in the third quarter of 2018.

At the same time, the international investment position of Cyprus in the third quarter this year recorded a drop, reaching a net liability position of €24,869.3 million, compared with €24,834.0 million in the previous quarter.

The external debt of Cyprus amounted to €208,112.8 million in the third quarter of 2019, compared with €208,114.5 million in the previous quarter of this year, the data shows.

Potential Risks

In recent days, the Central Bank of Cyprus warned of risks to the economy. More specifically, the CBC said:

“Although productivity remains low, many sectors record growth, particularly in the construction sector.

Positive GDP growth had a positive impact on the labor market, while private consumption is expected to slow down due to the expected acceleration in loan repayments and the introduction of contributions to the National Health System (GESY).

The projected slowdown in investments is attributed to the gradual completion of investment projects (renewable energy infrastructure, marinas, and the casino resort), while inflation is expected to move slightly higher in 2020 compared to 2019.”