Cyprus’ international investment position (IIP) showed modest improvement in the third quarter of 2024, with the net liability position narrowing to €27,789.1 million, compared to €27,875.8 million in the previous quarter. These provisional figures, released by the Central Bank of Cyprus’ Statistics Department, offer insight into the country’s external economic dynamics during this period.
Adjusted IIP Reflects SPE Exclusions
When adjusted to exclude the impact of Special Purpose Entities (SPEs) — which are treated as non-residents for statistical purposes — the IIP revealed a more significant improvement. The adjusted net liability position dropped to €9,945.9 million in Q3 2024 from €10,010.2 million in Q2 2024, underscoring a positive trend.
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Current Account Deficit Contracts
Preliminary balance of payments data highlighted a substantial reduction in Cyprus’ current account deficit. The deficit shrank from €369.4 million in Q3 2023 to just €29.6 million in Q3 2024, marking a notable year-on-year improvement.
After adjusting for SPEs, the current account deficit stood at €108.2 million in Q3 2024, a significant reduction from €351.6 million in the same quarter of the previous year. This adjustment reflects a clearer picture of the underlying economic performance, excluding the disproportionate influence of SPEs.
External Debt Insights
Gross external debt fell slightly to €261,534 million in Q3 2024, down from €262,098.6 million in the preceding quarter. However, external assets in debt instruments decreased more sharply, falling to €243,834 million from €249,665.7 million in Q2 2024. As a result, Cyprus’ net external debt climbed by €5,267.1 million, reaching €17,700 million.
When factoring out SPEs, gross external debt was significantly lower, at €59,257 million in Q3 2024, down from €61,077.4 million in Q2. Correspondingly, the net external debt adjusted for SPEs dropped to -€20,789.7 million, compared to -€19,239.7 million in the previous quarter.