Cyprus trade deficit widens to €4.68bn in first half of 2026

Cyprus’ trade deficit widened sharply during the first half of 2026, reaching €4.68 billion, as imports continued to grow while exports moved in the opposite direction, according to figures released on Monday by the statistical service (Cystat). Total imports between January and June amounted to €7.30bn, up 8.8 per cent from €6.71bn during the corresponding period of 2025. At the same time, exports fell by 1.2 per cent to €2.62bn, compared with €2.65bn a year earlier. Consequently, the trade deficit increased by €624 million, or 15.4 per cent, from €4.06bn in the first six months of 2025. The imbalance became particularly visible in June, when imports rose by 11.9 per cent to €1.29bn, while exports declined by 9.9 per cent to €463m. This left Cyprus with a monthly trade shortfall of approximately €826.3m, almost 30 per cent wider than the €638.1m recorded in June 2025. Imports from other EU member states increased to €730.7m from €615.1m, while those from third countries rose to €558.6m from €537.1m. Export activity followed a different pattern. Shipments to other EU countries climbed to €212m from €149m, but exports to third countries fell sharply to €251m from €365.1m, more than offsetting the improvement within the bloc. The June figures were also influenced by large transport-related transactions. Imports included the transfer of economic ownership of vessels worth €117.8m, more than double the €55.8m recorded a year earlier. Exports included ownership transfers involving vessels and aircraft valued at €77.3m, compared with €68.5m in June 2025. Turning to the final figures for May, imports increased by 22.4 per cent to €1.31bn from €1.07bn. Meanwhile, total exports, according to the monthly trade table, rose by 59.2 per cent to €521.6m from €327.6m. Exports of domestically produced goods, including stores and provisions for ships and aircraft, increased by 63.9 per cent to €348.1m from €212.4m. Exports of foreign products also rose strongly, reaching €173.5m from €115.3m, an increase of 50.5 per cent. Within domestic exports, industrial products accounted for €334.7m in May, compared with €197.9m a year earlier. Agricultural exports, however, decreased to €12.2m from €13.3m. The monthly data show that imports increased from €993.4m in January to €1.12bn in February and €1.21bn in March, before reaching a first-half high of €1.38bn in April. They subsequently eased to €1.31bn in May and €1.29bn in June. Exports were considerably more uneven, standing at €525.7m in January, falling to €244.8m in February, recovering to €500.9m in March and dropping again to €361.7m in April. They then rose to €521.6m in May before declining to €463m in June. For the whole of 2025, the table recorded imports of €13.87bn and exports of €5.58bn. The composition of domestically produced exports during the January-to-May period remained heavily concentrated in mineral fuels and oils, which were valued at €743.6m and represented 55.5 per cent of the total. Cystat clarified that these products were initially imported, processed in Cyprus and subsequently re-exported. Halloumi was the second-largest category, generating €167.5m and accounting for 12.5 per cent, followed by pharmaceutical products at €144.2m, or 10.8 per cent. Waste and scrap of paper, glass and metal contributed €47.3m, representing 3.5 per cent, while fish exports reached €26m, or 1.9 per cent. Potatoes accounted for €24.7m, or 1.8 per cent, and telecommunications equipment contributed €17.7m, or 1.3 per cent. Meanwhile, exports of fire extinguishers and related parts stood at €15.3m, while fruit and vegetable juices reached €14.3m, with each category representing 1.1 per cent. All remaining domestically produced goods were valued at €139.9m and accounted for 10.4 per cent. Finally, Cystat noted that import figures for March through May and export figures for January through May had been revised, while the June figures remain provisional.