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Cyprus Current Account Deficit Widens To €1.3 Billion In Q1

by THEFUTURE.TEAM

July 6, 2026

Cyprus recorded a wider current account deficit in the first quarter of 2026, even as the European Union as a whole posted a stronger external balance, according to figures released by Eurostat on Friday.

Cyprus Deficit Reaches €1.3 Billion

Eurostat said Cyprus registered a current account deficit of €1.3 billion in the first quarter of 2026, compared with €0.8 billion in the fourth quarter of 2025 and €1.0 billion in the same period a year earlier.

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The latest figures continue a volatile trend over the past year. After narrowing to €0.4 billion in the second quarter of 2025 and just €0.1 billion in the third quarter, the deficit widened again during the final quarter of the year before increasing further at the start of 2026.

EU External Surplus Strengthens

Across the EU, the seasonally adjusted current account surplus increased to €113.4 billion, equivalent to 2.4% of GDP, from €99.2 billion, or 2.1% of GDP, in the previous quarter. That also marked an improvement from the €104.9 billion surplus, or 2.3% of GDP, recorded in the first quarter of 2025.

According to Eurostat, stronger balances in services and primary income more than offset a weaker surplus in trade in goods.

Mixed Signals Across Key Accounts

Goods surplus declined to €66.7 billion from €89.0 billion in the fourth quarter of 2025, while the services surplus rose to €52.1 billion from €43.9 billion.

Primary income recorded the sharpest improvement, shifting from a €4.3 billion deficit in the previous quarter to a €25.3 billion surplus in the first quarter of 2026.

Not all components were strengthened. The secondary income deficit widened to €30.7 billion from €29.4 billion, while the capital account deficit increased to €3.8 billion from €3.2 billion.

Largest Surpluses And Deficits With Trading Partners

The EU recorded its largest current account surpluses with the United Kingdom (€72.8 billion) and Switzerland (€38.7 billion) during the first quarter. Additional surpluses were generated with Brazil (€11.1 billion), Canada (€10.1 billion), Hong Kong (€6.9 billion), Russia (€3.5 billion), and Japan (€3.2 billion).

China remained the bloc’s largest source of deficit at €66.3 billion, followed by the United States (€15.8 billion), offshore financial centres (€1.5 billion) and India (€1.1 billion).

Investment Flows Remain Active

Investment activity also remained robust during the quarter. Direct investment assets increased by €27.1 billion, while liabilities rose by €30.4 billion, resulting in net direct investment inflows of €3.3 billion.

Portfolio investment generated net inflows of €128.8 billion, whereas other investment recorded net outflows of €123.1 billion.

Member State Performance Varies Widely

Based on available non-seasonally adjusted data, 16 EU member states recorded current account surpluses in the first quarter of 2026, while 10 posted deficits. Figures for France were unavailable.

Germany recorded the largest surplus at €61.8 billion, followed by the Netherlands (€26.3 billion), Ireland (€17.4 billion), Denmark (€9.2 billion), Spain (€8.9 billion), Sweden (€8.8 billion) and Austria (€7.3 billion).

Among countries with current account deficits, Greece posted the largest shortfall at €6.6 billion, ahead of Romania (€5.3 billion), Croatia (€3.4 billion), Bulgaria (€2.4 billion) and Cyprus (€1.3 billion).

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Only 1% Of Cyprus Farms Use Precision Farming Technologies

Cyprus remains one of the European Union’s least digitised agricultural economies, with just 1% of farms using precision farming technologies in 2023, according to Eurostat.

The findings come as the EU continues to encourage the adoption of digital tools aimed at improving agricultural productivity, efficiency and sustainability.

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Internet Access Expands, But Digital Uptake Lags

Internet access has improved across the bloc, although adoption remains uneven. Eurostat found that 43% of EU farms had internet access in 2023, with northern and central European countries leading the way.

Denmark, Germany, Slovakia, Latvia, the Czech Republic and Austria all reported internet access rates above 90%.

Greater connectivity, however, has not translated into widespread digital adoption. Farm management information systems, which help farmers manage day-to-day operations, were used by only about 11% of EU farms. France was a notable exception, with around 60% of farms using the technology.

Precision Farming Concentrated In Larger Operations

Robotics adoption also remained relatively limited, with only about 7% of EU farms using robotic technologies. Overall, around 18% of farms with utilised agricultural area employed at least one precision farming technology or practice in 2023.

These included robotics for plant protection, band spraying, variable-rate application, precision crop monitoring and soil analysis. Despite representing fewer than one in five farms, these holdings accounted for around 44% of the EU’s utilised agricultural area.

The figures suggest that precision farming remains concentrated among larger agricultural businesses, where investment in digital technologies is typically easier to support.

Cyprus Lags Behind EU Leaders

Luxembourg, Finland and Estonia recorded the highest shares of utilised agricultural area managed by farms using precision farming technologies, each exceeding 75%.

At the other end of the ranking, Cyprus recorded just 1%, while Greece and Romania reported between 10% and 15%. The results indicate that Cyprus remains at an early stage of digital adoption in agriculture, even as precision farming becomes more widespread across parts of the European Union.