Cyprus trade deficit rises to €2.56 billion — imports outstrip improvement in exports

The first quarter of 2023 brought with it a sharp increase in Cyprus’ trade deficit, with imports rising significantly compared to the same period in 2022, according to a report released this week by the Cyprus Statistical Service (Cystat).

According to the report, Cyprus’ trade deficit jumped to €2.56 billion between January and March 2023, marking an increase of €948.8 million from the previous year’s corresponding period.

The cause of this deficit was the staggering 41.2 per cent increase in total imports of goods in the same period, which amounted to €3.48 billion.

While total exports of goods for the period of January-March 2023 increased by 8.1 per cent, rising to €916.2 million, compared to the same period in 2022, this increase was not sufficient to offset the substantial rise in imports.

Preliminary data revealed that total imports of goods in March 2023 were €993.8 million, a slight increase of 1.5 per cent compared to March 2022.

What is more, the increase in imports from EU Member States and third countries contributed to the trade balance deficit.

Imports from EU Member States amounted to €618.7 million, while imports from third countries were valued at €375.1 million in March 2023.

In comparison, imports from other EU Member States amounted to €599.4 million, while imports from third countries were valued at €379.6 million in March 2022.

The transfer of economic property of mobile transport equipment, specifically ships, contributed to the total value of imports and exports for the months of March and February 2023.

The value of these transfers decreased from €159 million to €46.1 million in March 2023 compared to the same month in 2022.

Conversely, exports of ships and aircraft supplies increased from €83.6 million to €107.8 million in March 2023 compared to the same period in 2022.

For February 2023, the total imports of goods were valued at €777.8 million, marking an increase of 5.6 per cent from the same month in 2022.

However, exports of domestically produced goods, including ship and aircraft supplies, declined by 19.7 per cent to €122 million.

Finally, the value of exports of industrial and agricultural products also decreased in February 2023 compared to the same period in 2022.