Local
articles | 17 January 2014

Drop in Cyprus trade deficit and inflation

Cyprus' trade deficit for the first ten months of 2013 recorded a significant drop of €900 million, according to Eurostat data.

Furthermore, Eurostat notes that the annual harmonised inflation fell for a third consecutive month in December 2013 in Cyprus. The total value of Cyprus' exports in January-October 2013 reached €1.3 bn, recording an increase of 11% compared to the respective period of 2012. Furthermore, imports were down by 18%, reaching €3.9 bn in value from €4.8 bn in the same period of 2012. Cyprus' total deficit for the first ten months of 2013 reached €2.7 bn, compared with €3.6 bn in the same period of 2012.

The first estimate for the euro area (EA17) trade in goods balance with the rest of the world in November 2013 gave a €17.1 billion surplus, compared with +€12.5 bn in November 2012. The October 2013 balance was +€16.8 bn, compared with +€9.6 bn in October 2012. In November 2013 compared with October 2013, seasonally adjusted exports fell by 0.2% and imports by 1.3%. The first estimate for the November 2013 extra-EU28 trade balance was a €3.4 bn surplus, compared with -€3.0 bn in November 2012. In October 2013 the balance was +€4.8 bn, compared with -€10.2 bn in October 2012. In November 2013 compared with October 2013, seasonally adjusted exports fell by 0.6% and imports by 1.4%.

Regarding inflation, in December 2013, the lowest annual rates were observed in Greece with -1.8%, Cyprus -1.3%, Bulgaria -0.9% and Latvia -0.4%, and the highest in Estonia, Austria and the United Kingdom, all 2.0%, and Finland 1.9%. Compared with November 2013, annual inflation fell in nine member states, remained stable in four and rose in fourteen. European Union annual inflation was 1.0% in December 2013, stable compared with November. A year earlier the rate was 2.3%. Monthly inflation was 0.3% in December 2013. Euro area annual inflation was 0.8% in December 2013, down from 0.9% in November. A year earlier the rate was 2.2%. Monthly inflation was 0.3% in December 2013. The lowest 12-month average rates up to December 2013 were registered in Greece with -0.9%, Latvia 0.0%, Bulgaria, Cyprus, Portugal and Sweden, all 0.4%, and the highest in Estonia and Romania, both 3.2%, and the Netherlands and the United Kingdom, both 2.6%.

The largest upward impacts to Euro area annual inflation came from electricity at +0.11 percentage points, tobacco +0.08 and restaurants and cafés +0.05, while telecommunications with -0.14, fuels for transport -0.13, and medical and paramedical services -0.07 had the biggest downward impacts.

Source: Financial Mirror

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