**Title: Cyprus Trade Deficit Widened in Early 2026 Amid Rising Imports**
Cyprus experienced a significant widening of its trade deficit in the first seven months of 2026, as reported by the Cyprus Statistical Service (Cystat) on Wednesday. The trade deficit expanded to €5.62 billion, up from €4.80 billion during the same period in 2025, marking an increase of €821.20 million.
The surge in the trade deficit was primarily driven by a notable rise in imports, which climbed by 11.4% to reach €8.93 billion, compared to €8.02 billion a year earlier. In contrast, exports saw a more modest growth of 2.8%, totaling €3.31 billion, up from €3.22 billion in the first seven months of 2025.
July 2026 alone witnessed a particularly sharp increase in trade activity. Total imports for the month reached €1.61 billion, reflecting a substantial rise of 22.8% from €1.31 billion in July 2025. Imports from other EU member states amounted to €787.80 million, up from €745.70 million in the previous year, while imports from third countries surged to €821.60 million from €565.20 million.
A significant contributor to the July import figures was the transfer of economic ownership of vessels, valued at €136.10 million, compared to just €23.40 million in July 2025. This highlights the impact of maritime activities on the country’s import statistics.
Exports also showed positive movement in July, increasing to €666.80 million from €567.10 million in July 2025, which represents a growth of 17.6%. However, exports to other EU member states declined to €127.80 million from €173.50 million a year earlier. Conversely, exports to third countries experienced a significant boost, rising to €539.00 million from €393.60 million in July 2025. Notably, the transfer of economic ownership of vessels accounted for €35.30 million of the July export figures, down from €89.90 million in the same month of 2025.
In June 2026, total imports were recorded at €1.31 billion, reflecting a 13.9% increase from €1.15 billion in June 2025. However, domestic exports faced a decline during this month, with exports of domestically produced goods, including stores and provisions for ships and aircraft, dropping by 31.6% to €238.00 million from €347.70 million in June 2025. Industrial product exports, excluding stores and provisions, also fell to €228.10 million from €336.90 million a year earlier. Agricultural product exports, excluding stores and provisions, decreased to €8.50 million from €9.70 million.
On a brighter note, exports of foreign products saw a substantial increase of 35.3% in June, rising to €225.20 million from €166.40 million in June 2025. This indicates a shift in trade dynamics, with foreign products gaining traction in the Cypriot market.
Cystat’s final data for the first half of 2026 highlighted that mineral fuels and oils continued to dominate Cyprus’ export landscape, with exports of these goods reaching €858.70 million. Halloumi cheese followed as the second-largest export category, contributing €201.90 million, while pharmaceutical products accounted for €179.80 million in exports.
The latest figures underscore the critical role of fuel-related exports in Cyprus' external trade performance. Additionally, the contributions of halloumi and pharmaceutical products to domestic exports reflect the diversity and potential of the Cypriot export market.
As Cyprus navigates these trade dynamics, the contrasting trends in imports and exports will be pivotal in shaping the country's economic landscape in the coming months. The government and relevant stakeholders may need to consider strategies to enhance export growth and manage the rising trade deficit effectively.