Cyprus recorded a substantial improvement in its current account balance in the second quarter of 2024, with the deficit narrowing from €285.4 million in Q2 2023 to €52.9 million, according to preliminary data from the Central Bank of Cyprus (CBC).

The CBC also released revised data for statistics from 2008 to 2023, as well as for Q1 2024.

Preliminary balance of payments figures indicate that the current account deficit decreased sharply year-on-year, dropping to €52.9 million in Q2 2024 from €285.4 million in the same period last year.

Adjusted for the influence of special purpose entities (SPEs)—which are treated as non-residents—the deficit amounted to €205 million in Q2 2024, compared to €541 million in Q2 2023.

The CBC also reported progress in Cyprus’ net international investment position (IIP) during Q2 2024.

The net liability position improved to €27.88 billion, down from €28.54 billion in Q1 2024.

Adjusted for SPEs, the net liability position was recorded at €10.01 billion in Q2 2024, improving from €10.71 billion in Q1 2024.

Gross external debt rose slightly to €262.10 billion in Q2 2024, up from €260.54 billion in Q1.

However, external assets in debt instruments also increased, reaching €249.67 billion from €245.59 billion, resulting in a reduction in net external debt by €2.52 billion to €12.43 billion.

Adjusted for SPEs, gross external debt reached €61.08 billion in Q2 2024, up from €60.02 billion in Q1, while net external debt moved further into negative territory, improving to -€19.24 billion from -€17.43 billion.