Cyprus has experienced a considerable trade deficit increase in the period from January to September 2023, with the deficit reaching €6,490.8 million. This marks a rise of €685.1 million over the same period in 2022, as per the data released by the Statistical Service.

There was a 12.7% increase in total goods imports, amounting to €9,756.5 million, up from €8,655.7 million in the first nine months of 2022. Correspondingly, goods exports saw a 14.6% increase, totaling €3,265.7 million compared to €2,850 million in the same timeframe of the previous year.

In September 2023, goods imports surged by 25.4% to €1,100.4 million from €877.6 million in September 2022. Imports from other EU Member States stood at €637.7 million and from third countries at €462.7 million. These figures are up from €564 million and €313.6 million, respectively, in September 2022.

The September 2023 imports included the transfer of mobile transport equipment ownership, valued at €14.5 million, a decrease from €26.9 million in September 2022. Goods exports in September 2023 rose sharply by 52.9% to €440.8 million from €288.3 million in September 2022. Exports to EU member states were €82.9 million, and to third countries, €357.9 million, showing a significant increase from €121.6 million and €166.7 million, respectively, in the previous year. The export of mobile transport equipment in September 2023 was valued at €2.6 million, a substantial drop from €77.8 million in September 2022.

Final figures for August 2023 were also released, indicating that total imports of goods were €1,116.3 million, a 14.6% increase from €973.9 million in August 2022. Exports of domestically produced goods, including stores and provisions, stood at €220.4 million in August 2023, up by 84.4% from €119.5 million in August 2022.

Breaking down the exports, domestic industrial products totaled €214.1 million, compared to €112.4 million in the previous year. Meanwhile, agricultural product exports slightly decreased to €5.5 million in August 2023 from €6.1 million in August 2022. Exports of foreign goods, including stores and provisions, reached €201.6 million, representing a 34.3% increase from €150.1 million in August 2022.

Meanwhile, the solvency ratio of the Cypriot banking sector rose to a robust 23.3% in the second quarter of 2023, marking the highest level since March 2018, as reported by the Central Bank of Cyprus (CBC). This is an increase from the 21.7% recorded in the first quarter.

The CBC's key aggregate financial indicators highlight an improved cost-to-income ratio, which dropped to 32.9% in June 2023 from 33.5% in March 2023, indicating enhanced operational efficiency.

There was a notable improvement in the Common Equity Tier 1 (CET1) capital ratio, climbing to 20.9% from 19.3% in the preceding quarter, reaching its zenith since March 2018.

Regarding revenue, net interest income rose to represent 72.6% of total income by June's end, an increase from 68.5% in March. Conversely, net fee and commission income slightly decreased to 15% in the second quarter from 15.3% in the first.

Loan portfolios saw a slight contraction, with total loans representing 39.5% of total assets in June 2023, down from 40.5% in March. Cash and trading assets accounted for 37.9% of total equity in June 2023, showing a marginal decrease from 38% at the end of March.

Staff costs saw a modest rise, constituting 55.7% of total expenses in the second quarter, up from 55% in the first quarter of 2023.