The current account deficit in Cyprus widened to EUR 1,229.8 million in the fourth quarter of 2018 from EUR 1,196.2 million in the same period last year, as the secondary income gap increased to EUR 122.7 million from EUR 106.6 million while the services surplus declined sharply to EUR 775.8 million from EUR 1,019.7 million. On the other hand, the goods deficit shrank to EUR 1,725.8 million from EUR 1,935.6 million a year ago and the primary income gap fell to EUR 157 million from EUR 173.7 million. Considering 2018 full year, the current account deficit narrowed to EUR 1.46 billion from EUR 1.64 billion in 2017. Current Account in Cyprus averaged -274.77 EUR Million from 2001 until 2018, reaching an all time high of 395.30 EUR Million in the third quarter of 2006 and a record low of -1541.40 EUR Million in the fourth quarter of 2007.
Current Account in Cyprus is expected to be -460.00 EUR Million by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Current Account in Cyprus to stand at -980.00 in 12 months time. In the long-term, the Cyprus Current Account is projected to trend around -870.00 EUR Million in 2020, according to our econometric models.