Trade deficit narrows in January after plunge in imports

The January foreign trade deficit fell to a third of year-ago levels due mainly to a significant drop in imports, driven by a plunge in the transfer of ships and other vessels.

At the same time, final data for December, helped adjust the provisional figures for 2023, showing the trade deficit for the whole year narrowed by EUR 313 mln.

Based on provisional data for January, the statistics department Cystat said that total imports of goods were EUR 848.1 mln, compared to 1,735.1 mln in January 2023, a decrease of 51.1%. Total exports in January reached 281.5 mln as compared to 315.2 mn in January 2023, a decrease of 10.7%.

Thus, the trade deficit was EUR 566.5 mln in January 2024, almost a third of 1,419.9 mln in the same month of 2023, according to Cystat.

Imports from other EU member states were EUR 51.7 mln and from third countries 337.4 mln, compared to 529.1 mln and 1,206.0 mln, respectively, in January 2023.

Exports to other EU member states were EUR 103.5 mln and to third countries 178.1 mln, compared to 69.8 mln and 245.4 mln, respectively, in January 2023.

January imports include the transfer of economic ownership of vessels worth EUR 65.2 mln as compared to 936.3 mln in January 2023, while exports include the transfer of economic ownership of vessels and aircraft worth 69.5 mln, as compared to 107.5 mln in January 2023.

In plain terms, the transfer of economic ownership of vessels refers to the registration of ships under the Cyprus flag, an irregular statistic that is not seasonal.

Excluding ships, the January foreign trade deficit saw a marginal increase from EUR 570.9 in 2024 to 591.1, in the same month last year.

Trade deficit narrows in 2023

Meanwhile, according to final foreign trade data for

December, the total imports of goods amounted to EUR 928.4 mln, compared to 847.3 mln in December 2022, an increase of 9.6%.

December 2023 imports were initially reported at EUR 845.3 mln, according to provisional data announced in early February.

Total exports in December, including domestically produced goods, as well as foreign products, including stores and provisions, reached EUR 389.9 mln.

December 2023 exports were initially reported at EUR 267.3 mln, according to provisional data, the second worst month last year.

Total imports for all of 2023 reached EUR 12,948.9 mln, compared to a provisional 12.764 bln and exports were at EUR 4,686.3 mln from a provisional 4,189 mln.

Thus, the foreign trade deficit for all of 2023 is adjusted to EUR 8,262.6 mln, narrower than the 8,575 mln, based on provisional data for December.