Cyprus Mail

Current account deficit narrows in 2014 as FDI recovers

Cyprus’s current account deficit narrowed in 2014 to €791.5m or 4.6 per cent of gross domestic product compared to €808m or 4.5 per cent the year before, as the value of imported goods and income payable abroad continued to fall, the Central Bank of Cyprus said.

The value of the surplus in services fell 6.4 per cent to €2.9bn in 2014 compared to the year before while the trade deficit fell 4.3 per cent to €2.9bn, the central bank of Cyprus said in a statement on its website on Wednesday.

The flow of foreign direct investment in Cyprus increased in 2014 by €810.1m from -€9.5bn the year before while Cyprus’s direct investment abroad rose to €1.5bn from -€8.3bn, the central bank said.

“By the end of 2014, the total stock of foreign direct investment liabilities accumulated in Cyprus was €124.3bn, a 4 per cent decrease compared with 2013,” the central bank added. “Similarly, the total stock of foreign direct investment assets decreased from €119.8bn in 2013 to €115.975,2 million in 2014,” or an annual 3 per cent.

The change in foreign direct investment positions, consisting mainly by investment in finance and insurance, resulted from “price, exchange and other changes not related to transactions,” the supervisory authority added.

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