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Cyprus saw its trade deficit shrink by over 20% in the first half of 2024, according to the latest data from the Statistical Service. The trade deficit, which is the difference between what the country imports and exports, fell to €3.57 billion, down from €4.48 billion during the same period in 2023.
One of the key reasons for this improvement is a significant decrease in imports. From January to June 2024, Cyprus imported goods worth €5.56 billion, a 14.4% drop compared to the €6.49 billion imported during the same period last year.
Exports, on the other hand, remained relatively stable. Cyprus exported goods worth €1.99 billion in the first half of 2024, only slightly less than the €2.02 billion exported in the first half of 2023, marking a 1.5% decrease.
Looking at June 2024 alone, total imports were €896.9 million, down 15.3% from June 2023. Most of these imports came from other EU countries (€538.9 million), with the rest from non-EU countries (€358 million). Interestingly, June's imports included a €70.4 million transfer of economic ownership of vessels.
June was a strong month for exports, which jumped nearly 40% compared to June 2023, reaching €449 million. This surge was driven by increased exports to non-EU countries (€323 million). Notably, the transfer of economic ownership of vessels was also significant, valued at €159.7 million in June 2024.
The final data for May 2024 showed a slight increase in imports, rising by 3.7% compared to May 2023. However, exports of goods produced in Cyprus, particularly industrial products, saw a significant decline of 20.2%, from €240.7 million in May 2023 to €192.1 million in May 2024.
Despite the overall drop in exports of domestically produced goods, agricultural exports bucked the trend, increasing to €14.9 million in May 2024 from €11.6 million in May 2023.
In summary, Cyprus has managed to reduce its trade deficit by cutting back on imports while keeping exports relatively steady. However, the details show some fluctuations month by month, particularly in specific sectors like vessel ownership transfers and agricultural products.
[Source: CNA]
