By Stelios Orphanides
Cyprus last year generated a current account deficit of €1.3bn, or 6.7 per cent of economic output, compared to a deficit of €888.8m in 2016, or 4.39 per cent, the Central Bank of Cyprus said.
“Cyprus’ international investment position marginally improved in 2017, reaching a net liability position of €23.1bn, compared with €23.2bn in 2016,” the bank supervisor said in a statement on its website on Friday. “The external debt amounted to €107.1bn in 2017, compared with €107.3bn in 2016”.
A week ago, the European Commission and the European Central Bank (ECB) which together with the International Monetary Fund supervised Cyprus’s bailout, said that “the persisting current account deficit warrants close monitoring.”
The current account shows a country’s transactions with the rest of the world, such as trade in goods and services, transfer payments and earnings on cross-border investments.