Cyprus improves IIP position
Cyprus’ international investment position (IIP) recorded a small improvement at the end of first quarter of 2022, while its net external debt was down 2.23 billion euros, despite the deterioration in the current account balance.
Provisional data for Q1 2022 compiled by the Statistics Department of the Central Bank of Cyprus show the country’s international investment position recorded a small improvement, presenting a net liability position of €28.01 billion, compared with a net liability position of €28.79 billion in Q4 2021.
With the corresponding data being adjusted for the impact of special purpose entities, the IIP recorded a net liability position of -€9 billion at the end of Q1 2022, compared with a net liability position of -€10.15 billion at the end of the previous quarter.
Moreover, according to the CBC, Cyprus’ current account balance recorded a deterioration, with the deficit increasing from €865.9 million in 2021 Q1 to €1.06 billion in January-March 2022.
The resulting deficit when adjusting the data for the impact of SPEs – that is, classifying SPEs as non-residents – stood at €1.02 billion in Q1 of 2022, from a deficit of €682.7 million a year earlier.
