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Cyprus trade deficit widens as exports fall in early 2026

Cyprus Mail · 2026-06-09

AI SUMMARY

• What happened: Cyprus' trade deficit widened to €3.05 billion in the first four months of 2026, driven by a 15.1% increase in imports and a 9.3% decline in exports compared to the same period in 2025. • Why it matters: The widening trade deficit indicates economic challenges for Cyprus, as the country struggles with declining exports while imports continue to rise, affecting the overall economic stability. • What to watch next: Stakeholders will be monitoring future trade data to assess ongoing trends and their implications for the Cypriot economy, particularly in key export categories like mineral fuels, pharmaceuticals, and halloumi cheese.

**Cyprus Trade Deficit Widens as Exports Decline in Early 2026**

Cyprus is experiencing a widening trade deficit in the early months of 2026, as reported by the Cyprus Statistical Service (Cystat). The trade deficit reached €3.05 billion from January to April 2026, an increase from €2.67 billion during the same period in 2025. This shift is attributed to a rise in imports coupled with a decline in exports.

In April 2026, total imports of goods amounted to €1.37 billion, reflecting a 15.1% increase compared to the €1.19 billion recorded in April 2025. Notably, imports from other European Union (EU) member states decreased to €645.30 million from €740.80 million a year earlier. Conversely, imports from third countries surged to €725.40 million, up from €449.90 million in April 2025. A significant contributor to the April import figures was the transfer of economic ownership of vessels, valued at €240.40 million, compared to €100.40 million in April 2025.

On the export side, total goods exported in April 2026 fell by 7.6% to €363.60 million, down from €393.60 million in April 2025. Exports to EU countries rose slightly to €119.60 million from €109.20 million, while exports to third countries saw a decline to €244.00 million from €284.40 million a year earlier. The April export figures also included vessel ownership transfers worth €33.80 million, a marginal increase from €32.80 million in April 2025.

For the January to April 2026 period, total imports increased by 4.8% to €4.70 billion, compared to €4.48 billion during the same timeframe in 2025. Meanwhile, total exports decreased by 9.3% to €1.64 billion, down from €1.81 billion a year prior.

Cystat also provided final data for March 2026, indicating that imports amounted to €1.21 billion, an 11.6% rise from €1.09 billion in March 2025. Exports of domestically produced products, including stores and provisions for ships and aircraft, reached €368.20 million in March, showcasing a significant increase of 29.3% compared to €284.80 million in March 2025. Domestic exports of industrial products, excluding stores and provisions, rose to €352.40 million from €273.00 million a year earlier, while agricultural product exports increased to €14.70 million from €11.00 million.

However, exports of foreign products, which also include stores and provisions for ships and aircraft, fell sharply by 27.5% to €137.80 million, down from €190.20 million in March 2025.

The data reveals a mixed picture for Cyprus' external trade landscape. While there are strong performances in certain domestic export categories, the overall decline in exports and the widening trade gap present challenges for the Cypriot economy as it navigates through the early months of 2026.

Among the leading categories of domestically produced goods exported from January to March 2026, mineral fuels and oils topped the list with exports worth €424.70 million. Pharmaceutical products followed with exports valued at €94.80 million, and Cyprus' internationally recognized halloumi cheese contributed significantly, with shipments amounting to €91.70 million during the first quarter.

As the data continues to unfold, stakeholders will be closely monitoring these trends to assess their implications for the Cypriot economy moving forward.

Source: Cyprus Mail
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