Cyprus trade deficit rises to €6.86bn despite export surge

Cyprus’ trade deficit widened to €6.86 billion in the first nine months of 2026, despite stronger export growth, according to provisional figures released by the statistical service (Cystat) on Monday. The deficit increased by 10.2 per cent, from €6.23bn during the corresponding period of 2025, as the value of imports continued to exceed exports. Total imports rose by 12.1 per cent to €11.76bn between January and September, compared with €10.49bn a year earlier. Exports, meanwhile, increased by 14.8 per cent to €4.89bn, up from €4.26bn in the same period last year. Although exports grew faster in percentage terms, the considerably higher value of imports pushed the overall trade gap wider. September alone, however, recorded a different trend, with exports surging by 89.1 per cent to €939.3 million, compared with €496.6m in September 2025. The increase was largely driven by exports to third countries, which more than doubled to €723.3m from €323.9m a year earlier. Exports to other EU member states also increased, reaching €216m compared with €172.7m in September 2025. The September figures included the transfer of economic ownership of vessels worth €157.3m, up from €108m during the same month last year. Imports also rose in September, increasing by 19.7 per cent to €1.49bn, compared with €1.24bn a year earlier. Of this amount, imports from other EU member states reached €705.2m, up from €638.9m, while those from third countries increased to €784.4m from €605.3m. The import figures included transfers of economic ownership of vessels and aircraft worth €58.9m, compared with €38m in September 2025. As a result, Cyprus’ monthly trade deficit narrowed to €550.3m, from €747.6m a year earlier, a reduction of approximately 26.4 per cent. Meanwhile, Cystat’s final figures for August showed that imports increased by 15.8 per cent to €1.33bn, compared with €1.15bn in August 2025. Exports of domestically produced goods also rose, reaching €518.5m, an increase of 29.8 per cent from €399.4m a year earlier. Within this category, industrial exports, excluding mineral fuels and oils and stores and provisions for ships and aircraft, increased to €73.6m from €71.2m. Agricultural exports, excluding stores and provisions for ships and aircraft, also rose to €7m, compared with €6.4m in August 2025. In contrast, exports of foreign products fell by 14.5 per cent to €125.2m, down from €146.5m a year earlier. Looking at the first eight months of 2026, halloumi remained Cyprus’ leading domestic export category, excluding mineral fuels and oils and stores and provisions for ships and aircraft, with a value of €258.3m. Pharmaceutical products followed at €226.1m, while exports of waste and scrap of paper, glass and metal amounted to €71.1m.