Cyprus Trade Deficit Grows in May
In May, Cyprus experienced a significant increase in its trade deficit, primarily driven by a sharp decline in exports and a slight uptick in imports, according to data released by the Cyprus Statistical Service (CyStat). The trade deficit for the month reached 693.4 million euros, marking a notable increase from the 578.2 million euros recorded in May 2023.
Imports and Exports
Imports for May totaled 1.03 billion euros, representing a 3.2% increase from the previous year. Imports from EU countries amounted to 611.4 million euros, up from 594 million euros in May 2023. Similarly, imports from non-EU countries rose to 420.4 million euros compared to 406 million euros in the previous year. Notably, the transfer of ship ownership played a significant role in boosting import figures, with vessels valued at 77 million euros compared to 34.6 million euros in May of the previous year.
In contrast, exports in May experienced a significant decline of 19.8%, totaling 338.4 million euros compared to 421.8 million euros in May 2023. Exports to EU countries dropped to 89.8 million euros from 101.3 million euros, while exports to non-EU countries fell to 248.6 million euros from 320.5 million euros. The decrease in exports contributed to the widening trade deficit for Cyprus in May.
Decline in Ship Transfers in Exports
In May 2023, the use of ship transfers in exports saw a significant decrease, with only €68.6 million reported compared to €100.8 million in May of the previous year.
Year-on-Year Import and Export Decline
For the year ending in May, imports experienced a 14.4% decrease compared to the previous year, while exports also saw a decline of 9.5%. This downward trend in both imports and exports indicates a challenging economic climate that businesses and policymakers need to navigate.
