Cyprus recorded a current account deficit of €1.3 billion in the first quarter of 2026, according to Eurostat, as a smaller services surplus weighed on the country’s external balance.
The figures, which are neither calendar nor seasonally adjusted, show the deficit widened from €1.0 billion in the first quarter of 2025.
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A Softer Services Position
Services remained the main contributor to Cyprus’ external accounts, although the surplus narrowed to €1.2 billion in the first quarter from €1.5 billion a year earlier. Throughout 2025, the services balance stood at €2.3 billion in the second quarter, €2.9 billion in the third and €2.5 billion in the fourth.
Cyprus’ current account remained in deficit throughout last year, recording shortfalls of €0.4 billion in the second quarter, €0.1 billion in the third and €0.8 billion in the fourth before widening again at the start of 2026.
European Union Posts Wider Surplus
Across the European Union, the seasonally adjusted current account surplus increased to €113.4 billion, or 2.4% of GDP, in the first quarter of 2026, up from €99.2 billion in the previous quarter and €104.9 billion a year earlier.
The improvement came despite a narrower goods surplus, which fell to €66.7 billion from €89.0 billion, while the services surplus increased to €52.1 billion from €43.9 billion.
Member State Divergence Remains Wide
Based on non-seasonally adjusted data, 16 EU member states recorded current account surpluses in the first quarter, while 10 posted deficits. France did not report data.
Germany recorded the largest surplus at €61.8 billion, followed by the Netherlands (€26.3 billion) and Ireland (€17.4 billion).
Among deficit countries, Greece posted the largest shortfall at €6.6 billion, ahead of Romania (€5.3 billion), Croatia (€3.4 billion) and Bulgaria (€2.4 billion). Cyprus also remained in deficit, at €1.3 billion.
