**Cyprus Trade Deficit Expands as Imports Surge Ahead of Exports**
Cyprus has reported a widening trade deficit for the first five months of 2026, as the growth in imports outpaced that of exports, according to data released by the state statistical service, Cystat. The figures indicate that the trade deficit has reached €3.84 billion, an increase from €3.42 billion during the same period in 2025.
Between January and May 2026, total imports of goods amounted to €5.99 billion, reflecting an 8.0 percent increase compared to €5.55 billion in the same timeframe last year. The significant rise in imports has been attributed to various factors, including increased demand for goods from both EU member states and third countries.
In May 2026 alone, imports surged to €1.31 billion, marking a substantial annual increase of 22.3 percent from €1.07 billion in May 2025. Notably, imports from other EU countries reached €705 million, up from €621.70 million a year earlier, while imports from non-EU nations also rose to €604.10 million, compared to €448.40 million in May 2025. This growth included the transfer of economic ownership of vessels and aircraft, valued at €79.90 million in May 2026, a significant increase from €40.40 million in May 2025.
On the export side, Cyprus saw a modest increase in total goods exports, which amounted to €2.15 billion in the first five months of 2026, up from €2.14 billion during the same period in 2025. This represents a growth of 1.0 percent. However, the figures indicate that while exports experienced a notable boost in May, the overall performance remains overshadowed by the rapid growth in imports.
In May 2026, exports reached €520.40 million, a remarkable increase of 58.9 percent compared to €327.60 million in May 2025. Exports to other EU member states totaled €127.30 million, a slight increase from €116.50 million in the previous year. Exports to third countries saw a significant rise, reaching €393.10 million compared to €211.10 million in May 2025. The May export figures also included the transfer of economic ownership of vessels valued at €34.80 million, up from €7.50 million in May 2025.
Cystat's final data for April 2026 revealed that total imports of goods were recorded at €1.37 billion, an increase of 14.9 percent from €1.19 billion in April 2025. However, exports of domestically produced products saw a decline during the same month, dropping to €220.90 million from €277.70 million a year earlier, a decrease of 20.5 percent. This decline was primarily driven by reduced exports of industrial products, which fell to €205.90 million in April 2026 from €263.20 million in April 2025.
In contrast, exports of domestic agricultural products showed a slight increase, rising to €14.00 million in April 2026 from €13.40 million in April 2025. Additionally, exports of foreign products, including stores and provisions for ships and aircraft, rose to €142.20 million in April 2026, up from €115.90 million the previous year, marking a 22.7 percent increase.
For the January-April 2026 period, the main categories of domestically produced exports, excluding stores and provisions for ships and aircraft, included mineral fuels and oils valued at €517.40 million, halloumi cheese worth €130.20 million, and pharmaceutical products valued at €123.00 million.
The data suggests that while Cyprus experienced a surge in export activity in May, particularly towards non-EU markets, the overall trade balance remains under pressure due to the sustained growth in imports. As the country navigates its trade dynamics, the widening deficit highlights the need for strategies to enhance export competitiveness and manage import levels effectively.