Newsroom
Cyprus’ trade deficit dropped significantly by 17.4%, or €1.18 billion, in the first nine months of the year compared to the same period in 2023, according to provisional data from the Statistical Service of Cyprus (Cystat). The deficit amounted to €5.6 billion from January to September, down from €6.8 billion a year earlier.
Lower import and export levels contributed to the narrowing gap. Imports decreased by 15.2%, totaling €8.5 billion compared to €10.1 billion in 2023. Meanwhile, exports also dipped by 10.6% to €2.9 billion, down from €3.3 billion during the same period last year.
In September alone, imports fell by 14.3%, reaching €944.2 million. Imports from EU countries were €592.9 million, while goods from non-EU countries amounted to €351.3 million, both lower than their 2023 figures.
Exports in September saw a sharper drop of 21.2% year-on-year, totaling €350.2 million. Exports to EU states were up slightly at €109.6 million from €86.2 million, while exports to other countries fell to €240.6 million, down from €358 million in September 2023.
Pros and Cons of a Lower Trade Deficit
The decline in Cyprus' trade deficit can present both benefits and challenges for the economy.
Pros: A smaller trade deficit means Cyprus is spending less on imports relative to what it earns from exports, which could reduce the country's reliance on foreign goods. This may help boost local industries if more goods are sourced domestically. In the long term, a lower deficit could strengthen the nation's balance of payments and support economic stability.
Cons: However, the drop in exports highlights a concern. Cyprus may face reduced revenue from its goods sold abroad, which could slow economic growth if local industries depend on foreign demand. A weaker export performance could also impact job creation and business profitability in export-driven sectors.
The mixed picture suggests Cyprus may need to balance trade carefully, seeking to foster domestic production while ensuring export competitiveness.
[With info from CNA]
