Dialogos

Cyprus: Improved Trade Balance, Increased External Debt

Published January 7, 2026, 18:00
Cyprus: Improved Trade Balance, Increased External Debt

Cyprus's current account balance improved, with the deficit decreasing from €116.1 million in the third quarter of 2024 to €95.0 million in the third quarter of 2025. However, when considering special purpose entities (SPEs), the deficit increased to €304.0 million in the third quarter of 2025, compared to €204.3 million in the same quarter of the previous year. Cyprus's international investment position deteriorated, showing a net liability position of €31,523.4 million in the third quarter of 2025, up from €30,094.9 million in the second quarter of 2025. Furthermore, gross external debt increased to €234,868.8 million, while net external debt rose by €6.3 million to €9,910.9 million. The Central Bank of Cyprus notes that adjusting the data for the impact of SPEs affects the results.