Cyprus Trade Deficit Widens in First Half of 2023 Despite Import Decrease

The trade deficit for the first half of 2023 in Cyprus has surged by approximately €574 million compared to the same period last year, as reported by the Cyprus Statistical Service (CyStat) on Wednesday.

Despite a significant decrease in imports during May and June in comparison to 2022, the trade deficit reached €4,393.6 million for January to June 2023, compared to €3,819.3 million during the corresponding period in 2022.

June saw a notable decline of 18.3% in total imports of goods, amounting to €984.0 million, compared to €1,204.0 million in June 2022. The provisional data for June indicated imports of €596.9 million from other EU member states and €387.1 million from third countries, as opposed to €579.0 million and €625.0 million, respectively, in June 2022.

Significantly, the imports for June 2023 encompassed the transfer of economic ownership of mobile transport equipment (vessels), with a total value of €83.9 million, a notable drop from €364.7 million in June 2022.

In contrast, total exports of goods for June 2023 exhibited an increase of 9.3%, amounting to €320.9 million compared to €293.6 million in June 2022. Exports to other EU member states reached €119.6 million, while exports to third countries stood at €201.3 million. This demonstrated an increase from €107.2 million and €186.5 million, respectively, during June 2022. Furthermore, June 2023 exports included the transfer of economic ownership of mobile transport equipment (vessels), valued at €83.4 million, surpassing the €39.3 million recorded in June 2022.

The overall imports of goods for the first half of 2023 amounted to €6,358.4 million, reflecting a 12% increase from the €5,674.8 million registered during the same period in 2022. Concurrently, total exports of goods for the initial half of 2023 reached €1,964.8 million, marking a 5.9% rise compared to €1,855.4 million during the first half of 2022.

The widening trade deficit for January to June 2023, standing at €4,393.6 million, surpasses the €3,819.3 million recorded during the corresponding period in 2022. Despite a decline in import volumes during May and June, the trade deficit continues to expand, revealing ongoing economic dynamics and challenges within Cyprus' trade landscape.

By fLEXI tEAM