EU trade grows as Cyprus deficit widens sharply in first half of 2026

EU imports of goods from outside the bloc rose 9.9 per cent in the second quarter of 2026 compared with the previous quarter, while exports increased 5.4 per cent, according to Eurostat, as Cyprus separately recorded a sharp widening of its trade deficit during the first half of the year. The EU imported €701.8 billion worth of goods from non-EU countries between April and June, while exports reached €680.0 billion. Compared with the second quarter of 2025, EU imports increased by 11.7 per cent and exports rose 4.5 per cent. China remained the EU’s largest source of imported goods, accounting for €153.6 billion, or 21.9 per cent of all extra-EU imports. The United States was the second-largest supplier at €98.7 billion (14.1 per cent), followed by the United Kingdom at €43.4 billion (6.2 per cent). Switzerland accounted for €36.9 billion (5.3 per cent), while Turkey supplied €25.5 billion (3.6 per cent) of EU imports. Compared with Q2 2025, imports from the United States increased by 11.5 per cent, the United Kingdom by 8.8 per cent, China by 7.9 per cent and Switzerland by 2.1 per cent. Imports from Turkey, however, edged down by 0.6 per cent year-on-year. The United States remained the EU’s largest export market, with EU goods exports reaching €127.7 billion, or 18.8 per cent of all extra-EU exports. The United Kingdom ranked second at €92.7 billion (13.6 per cent), followed by Switzerland at €60.5 billion (8.9 per cent). China received €50.3 billion of EU goods exports (7.4 per cent), while exports to Turkey stood at €27.3 billion (4 per cent). Exports to Switzerland recorded the strongest growth among the EU’s main trading partners, rising 16.1 per cent compared with the second quarter of 2025. Exports to the United Kingdom increased by 5.6 per cent and those to China rose by 2.8 per cent. The EU’s exports to the United States fell by 5.6 per cent, while exports to Turkey declined by 4.9 per cent. The broader European trade figures come as Cyprus continues to experience a significantly different trade balance, with the island’s dependence on imports contributing to a €4.68 billion trade deficit in the first six months of 2026. According to figures released by the Cyprus Statistical Service (Cystat), Cyprus imported €7.30 billion worth of goods between January and June, an increase of 8.8 per cent from €6.71 billion during the same period of 2025. Exports, meanwhile, fell 1.2 per cent to €2.62 billion from €2.65 billion a year earlier. The resulting trade deficit was €624 million, or 15.4 per cent, higher than the €4.06 billion recorded during the first half of 2025. The deterioration was particularly pronounced in June, when imports rose 11.9 per cent year-on-year to €1.29 billion. Exports fell 9.9 per cent to €463 million, leaving Cyprus with a monthly trade deficit of approximately €826.3 million—almost 30 per cent higher than the €638.1 million shortfall recorded in June 2025. Cyprus imported €730.7 million worth of goods from other EU member states in June, up from €615.1 million a year earlier. Imports from countries outside the EU also increased, rising to €558.6 million from €537.1 million. Exports showed a more mixed picture, with shipments to other EU member states increasing to €212 million from €149 million. Exports to non-EU countries, however, fell sharply to €251 million from €365.1 million, more than cancelling out the increase in exports within the bloc. The June figures were also affected by significant transactions involving transport equipment. Imports included the transfer of economic ownership of vessels worth €117.8 million, more than twice the €55.8 million recorded in June 2025. Exports included transfers of ownership involving vessels and aircraft worth €77.3 million, compared with €68.5 million a year earlier. The final figures for May showed imports rising 22.4 per cent to €1.31 billion from €1.07 billion. Total exports increased by 59.2 per cent to €521.6 million, compared with €327.6 million in May 2025. Exports of domestically produced goods, including stores and provisions for ships and aircraft, increased 63.9 per cent to €348.1 million from €212.4 million. Exports of foreign products also rose strongly, increasing 50.5 per cent to €173.5 million from €115.3 million. Industrial products accounted for €334.7 million of domestic exports in May, up from €197.9 million a year earlier. Agricultural exports moved in the opposite direction, falling to €12.2 million from €13.3 million. The monthly figures show that Cyprus’ imports rose from €993.4 million in January to €1.12 billion in February and €1.21 billion in March. Imports reached a first-half peak of €1.38 billion in April before easing to €1.31 billion in May and €1.29 billion in June. Export performance was considerably more volatile, standing at €525.7 million in January, falling to €244.8 million in February, recovering to €500.9 million in March, dropping to €361.7 million in April, surging to €521.6 million in May, and falling again to €463 million in June. For the whole of 2025, Cystat’s trade table recorded imports of €13.87 billion and exports of €5.58 billion. The composition of Cyprus’ domestically produced exports during the January-to-May period remained heavily concentrated in mineral fuels and oils. These products were worth €743.6 million and accounted for 55.5 per cent of domestic exports during the period. Cystat said the fuels and oils were initially imported, processed in Cyprus and subsequently re-exported. Halloumi was the second-largest export category at €167.5 million (12.5 per cent) of domestic exports. Pharmaceutical products followed at €144.2 million (10.8 per cent). Waste and scrap of paper, glass and metal generated €47.3 million (3.5 per cent), while fish exports reached €26 million (1.9 per cent). Potatoes were worth €24.7 million (1.8 per cent), telecommunications equipment contributed €17.7 million (1.3 per cent), fire extinguishers and related parts reached €15.3 million (1.1 per cent), and fruit and vegetable juices were valued at €14.3 million (1.1 per cent). All other domestically produced goods combined were worth €139.9 million (10.4 per cent) of the total. Cystat said import figures for March through May and export figures for January through May had been revised, while the June figures remain provisional. The contrasting EU and Cyprus figures underline the island’s continued dependence on imported goods, even as trade flows across the wider European economy expanded during the second quarter.