Cyprus Current Account Deficit Widens As Services Surplus Narrows

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.

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Shein Targets $25 Billion Valuation In Hong Kong IPO As Growth Slows

by News Editor

August 17, 2026

Shein is reportedly targeting a valuation of around $25 billion in its planned Hong Kong IPO, a sharp decline from the nearly $100 billion valuation the online fashion retailer achieved in a 2022 fundraising round.

Two people familiar with the plans said the company was likely to target about $25 billion, while another source put the expected range at $25 billion to $28 billion based on the proposed price band.

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IPO Valuation Falls Sharply

Shein plans to sell up to 8% of its shares in the offering, according to a person familiar with the plans. At a $25 billion valuation, that would translate into an IPO of as much as $2 billion.

The latest target is also below the $30 billion to $40 billion valuation the company was seeking earlier this month as it began meeting with potential investors.

Founded in China in 2012 and now headquartered in Singapore, Shein sells low-cost clothing to consumers in about 160 countries. The company is expected to launch its long-awaited Hong Kong IPO later this week.

Trade Restrictions Weigh On Growth

Shein’s valuation has come under pressure as major markets tighten rules affecting low-cost e-commerce shipments. The European Union, for example, has moved to impose additional fees on cheap parcels from platforms such as Shein and Temu. EU Tightens Rules On Low-Cost E-Commerce Parcels

In the U.S., the removal of an import duty exemption for small packages has also affected the company. Shein reported a $99 million quarterly loss in the first quarter of 2026 as sales growth slowed, while a one-time accounting charge further weighed on its results. Shein Reports First-Quarter Loss Ahead Of IPO

Investors Question Shein’s Growth Prospects

The steep reduction in valuation reflects growing concerns over slower growth, higher trade costs, regulatory pressure and stronger competition across global e-commerce.

Some investors who reviewed Shein’s recent financial statements or attended IPO presentations told Reuters they were skeptical that the company could return to the growth rates that supported its $98.2 billion valuation in 2022. Shein’s Slowing Growth Tests Investor Appetite

A lower IPO valuation could also affect Shein’s existing investors. Under the terms of its IPO filing, the company may have to issue additional shares to certain pre-IPO investors if its valuation falls below agreed thresholds.

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