17.03.2022
According to stakeholders, rising commodity prices in Cyprus are largely responsible for the growing trade deficit, which increased by almost 20% in January compared to the same month last year.
The trade deficit, according to Cystat, increased by 19.4% in January compared to the same month in 2021, rising to 518.72 million euros from 434.34 million euros, despite an increase in the value of both exports and import.
Exports (from EU Member States and third countries) increased by 31% to €205.2 million from €156.3 million in January 2021, while imports rose by 22.6% to €724 million.
Asked to comment on the increase in the island’s trade deficit in January, Marios Tsiakkis, secretary general of the Cyprus Chamber of Commerce and Industry, said it was due to rising international prices.
Tsiakkis explained that commodity prices have risen due to strong demand for raw materials as economies reopen following the easing of COVID-19 restrictions around the world.
The CEO of the business chamber explained that “stakeholders expect the trade deficit to widen further if the rise in gasoline prices is not halted.”
The war in Ukraine is currently pushing higher fuel prices as Russian energy has been withdrawn from the market due to sanctions. The price of crude oil hit $135 a barrel on Sunday, but has since fallen to just above $100 on Thursday.Meanwhile, according to the final foreign trade data of Cyprus for December 2021, the total volume of imports of goods and exports of domestically produced goods decreased, while exports of foreign goods increased.
Trade Deficit Growing in 2021
For all of 2021, Cyprus’ trade deficit rose to 5.24 billion euros from 4.89 billion euros in 2020.
Total merchandise imports were €703.6 million in December 2021 compared to €713.5 million in December 2020, down 1.4%.
The total imports of goods in January this year amounted to about 724 million euros, compared to 590.6 million euros in January 2021, an increase of 22.6%.
Imports from other EU member states in January amounted to 498.8 million euros, and from third countries – 225.1 million euros, compared to 368.9 million euros and 221.7 million euros, respectively, in January 2021.
Exports to other EU member states in January 2022 amounted to 70.6 million euros and to third countries 134.6 million euros, compared to 64.6 million euros and 91.6 million euros respectively in January 2021.
Exports of domestically produced goods, including supplies and provisions, totaled €100.1 million in December 2021 compared to €107.4 million in December 2020, down 6.8%.
Domestic exports of industrial products in December 2021 amounted to 91.3 million euros, compared to 98.9 million euros in December 2020, and domestic exports of agricultural products in December 2021 amounted to 6.9 million euros, compared to 6.2 million euros in December 2020.Exports of foreign goods, including supplies and provisions, amounted to 232.3 million euros in December 2021, compared to 83.1 million euros in December 2020, an increase of 179.5%.
