Cyprus Current Account Deficit Widens in Q1 2026

Cyprus’ current account deficit widened to €1.27 billion in Q1 2026, up from €1.01 billion in the same period last year. The goods deficit was virtually unchanged at €1.58 billion, while the services surplus narrowed to €1.25 billion from €1.47 billion. The primary income gap slightly decreased to €0.78 billion from €0.83 billion, and the secondary income deficit rose to €0.17 billion from €0.07 billion.

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.