Cyprus Current Account Deficit Widens in Q1

Cyprus’ current account posted a deficit of EUR 95 million in the third quarter of 2025, narrowing from EUR 116.1 million in the same period a year earlier. This marked the smallest deficit since the fourth quarter of 2021, driven by a larger surplus in the services account, which grew to EUR 2,885.4 million from 2,637.3 million a year ago. The increase in services was due to higher surplus for travel, financial services, and charges for the use of intellectual property n.i.e. Meanwhile, the goods account shortfall widened to EUR 1,748.3 million from 1,684.8 million. Additionally, the primary income account recorded a higher gap, expanding to EUR 1,117.3 million from 964.8 million, as well as the secondary income account, which increased to EUR 114.8 million from 103.8 million.

Cyprus’ current account deficit narrowed to EUR 257.3 million in Q2 2025, down from a revised EUR 341.7 million a year earlier, driven by a smaller primary income gap, which fell to EUR 719.7 million from EUR 819.8 million, and a reduced secondary income deficit of EUR 40.7 million from EUR 47.5 million. The service surplus also rose to EUR 2,318.9 million from EUR 2,101.4 million. Offsetting these gains, the goods deficit widened to EUR 1,815.9 million from EUR 1,575.7 million. For the first half of 2025, the current account deficit remained broadly stable at EUR 1.35 billion, compared with EUR 1.32 billion in the same period of 2024.

The current account deficit in Cyprus widened to EUR 1,207.8 million in the first quarter of 2025, from EUR 947 million in the corresponding period of the previous year. The goods account deficit expanded to EUR 1,651.2 million from EUR 1,348.6 million a year ago, while the primary income gap also rose to EUR 1,081.1 million from EUR 765.3 million. Meanwhile, the services account surplus increased to EUR 1,595.4 million from EUR 1,249.9 million last year, whereas the secondary income shortfall narrowed to EUR 70.9 million from EUR 83.1 million.