H1 trade deficit widens to €2.4bn, Cystat says

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By Stelios Orphanides

The island’s trade deficit widened by €315.2m or 15 per cent in the first six months of the year to €2.4bn, compared with the respective period last year, the statistical service said.

Total imports rose an annual 3.2 per cent to €3.7bn in January to June while total exports dropped 14 per cent to below €1.3bn, Cystat said in a statement on its website on Wednesday.

Excluding the import and export of ships and aircraft, the value of imports in the first six months of the year rose an annual 22 per cent to below €3bn while that of exports rose 31 per cent to over €1bn, Cystat said.

Total imports from other European Union members fell 10 per cent in January to June to €2.3bn and total exports slumped 42 per cent to €502.4m, Cystat said. Total imports from third countries rose 38 per cent to €377.4m and total exports rose 27 per cent to €158.5m.

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About Author

Stelios Orphanides is a journalist at CyprusBusinessMail.com. To contact Stelios Orphanides: [email protected]

  • Mist

    So the relationship to an increase in tourist numbers and therefore importation of food?

    • GSP

      Valid thought.

    • Sink the EU

      Yes, you have to import more food for hotels to be supplied with but certainly don’t have to import german cars. Japanese made cars are the best in the world anyway.

  • Substantial research on the European financial crisis has shown that trade deficits in the fixed exchange-rate Eurozone can not be resolved by currency market forces. Deficits are financed by continually borrowing from countries with savings surpluses. For example, credit institutions in deficit nation Cyprus have to issue bonds to German pension funds to finance their borrowers’ Mercedes Benz imports. They have to offer competitive interest rates to attract investors. However, 2013 has shown that a nation can not live on credit forever.

    The answer is either to: (a) import less, live a more modest lifestyle and increase productivity, or (b) leave the Eurozone, devalue the Cyprus Pound and make Cypriot exports more competitive, or (c) go bankrupt. (a) is impossible because Cypriots are obsessed by money and material wealth; (b) is impossible because it would double Cyprus’ debt burden overnight; therefore it is only a matter of time before we get (c) again.

    • SuzieQ

      Yes, it’s extremely worrying.

      • Sink the EU

        Stop saying nonsense so that you say something.

    • Sink the EU

      The answer is: boycott all german products and go cold turkey now.

  • Sink the EU

    Stop buying german cars and other german shit immediately. Then you will be fine.

    • Bystander

      Yes, yes, Margaret!

  • Bystander

    Could fall in exports be attributed to reduced dubious ‘exports to Greece’ practices?