Recent data from the Central Bank of Cyprus (CBC) reveals a significant decline in the ratio of household and non-financial corporate debts to the country's Gross Domestic Product (GDP), indicating a positive trend in the national economy. The findings were part of the CBC's "Quarterly Financial Accounts" for the quarter ending June 2023.

At the close of June 2023, household debt in Cyprus stood at €20 billion, marking a decrease to 69% of the GDP. This slight dip from the previous quarter has been attributed mainly to an upswing in the GDP. This ratio shows a notable improvement from December 2016, where the debt index was approximately 46% higher.

In terms of assets, Cypriot households reportedly held €57 billion in various financial instruments. Analysis of these assets reveals that 58% constituted currency, deposits, and loans, followed by 21% in shares, 19% in other financial types, and 2% in securities.

Non-financial corporations reported assets totaling €66 billion. The composition of these assets was diverse, with shares accounting for 45%, other financial instruments for 31%, and currency and deposits for 19%. Loans and securities comprised 4% and 1%, respectively.

The corporate sector showed a debt of €40.4 billion at the end of June 2023, corresponding to 140% of the GDP. This figure represents a marginal reduction from the previous quarter, again credited to GDP growth. Compared to figures from December 2016, there's been a substantial decrease (~70%) in the debt index of non-financial companies.

The CBC report also sheds light on the financial assets of insurance corporations, investment funds, and pension funds. Insurance companies held €4.9 billion in financial instruments, primarily in shares (42%) and securities (27%). Investment funds had assets totaling €8 billion, predominantly in shares (83%), while pension funds recorded €4 billion in assets, mostly in shares (49%) and currency and deposits (19%).