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Cyprus Current Account Deficit Widens To €1.3 Billion As EU Posts Strong External Surplus

by THEFUTURE.TEAM

October 2, 2026

Cyprus’ current account deficit widened to €1.30 billion in the second quarter of 2026, according to Eurostat, underscoring a continuing external imbalance even as the European Union as a whole posted a sizeable surplus.

The latest reading was the largest deficit recorded by Cyprus across the five quarters covered by the data. It compared with a shortfall of €0.70 billion in the second quarter of 2025, €0.20 billion in the third quarter, €1.20 billion in the fourth quarter and €1.10 billion in the first quarter of 2026. In other words, Cyprus remained in deficit throughout the entire period, with pressures intensifying again in the latest quarter.

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What The Current Account Measures

The current account captures transactions between an economy and the rest of the world in goods, services, primary income and secondary income. For policymakers and investors, it is one of the clearest gauges of whether an economy is earning enough from abroad to cover what it spends overseas.

The European Union Posts A Broad Surplus

By contrast, the EU recorded a seasonally adjusted current account surplus of €80.20 billion in the second quarter of 2026, equivalent to 1.6% of gross domestic product. That was down from €98.00 billion, or 2.0% of GDP, in the first quarter, and below the €91.70 billion surplus recorded a year earlier.

The decline reflected weaker balances across several key components. The goods surplus narrowed slightly to €62.90 billion from €63.60 billion, while the services surplus fell more sharply to €41.70 billion from €48.10 billion. The primary income surplus dropped to €0.80 billion from €15.70 billion in the previous quarter. Offsetting some of that weakness, the secondary income deficit narrowed to €25.20 billion from €29.30 billion.

Capital Flows Shift In The Opposite Direction

The EU’s capital account moved in the other direction, with the deficit widening sharply to €16.20 billion in the second quarter from €1.70 billion in the first quarter. The financial account also showed large cross-border movements. EU direct investment assets increased by €120.50 billion, while direct investment liabilities rose by €1.40 billion, leaving the bloc a net direct investor in the rest of the world with net outflows of €119.10 billion.

Portfolio investment recorded a net inflow of €200.70 billion, while other investment posted a net outflow of €104.80 billion.

Where The EU Stands With Key Trading Partners

Eurostat’s non-seasonally adjusted data also show how the EU’s external position varied across major trading partners in the second quarter. The bloc recorded its largest current account surplus with the United Kingdom, at €89.80 billion. It also posted surpluses with Switzerland (€23.90 billion), Canada (€12.90 billion), Brazil (€10.30 billion) and Hong Kong (€9.60 billion).

Additional surpluses were recorded with offshore financial centres (€9.20 billion), Russia (€1.90 billion), Japan (€0.80 billion) and India (€0.40 billion). On the deficit side, China remained the EU’s largest counterpart imbalance, at €66.60 billion, followed by a €30.30 billion deficit with the United States.

Member State Performance Remains Uneven

Looking at individual EU member states, including both intra-EU and extra-EU transactions, 11 countries recorded current account surpluses in the second quarter, while 16 posted deficits.

Germany led the bloc with a surplus of €45.00 billion, followed by Ireland at €19.70 billion and the Netherlands at €16.90 billion. Denmark posted a surplus of €13.20 billion, Sweden €11.60 billion and Spain €8.70 billion.

On the deficit side, Romania recorded the largest shortfall at €7.80 billion, ahead of France at €6.50 billion, Poland at €6.20 billion and Greece at €3.80 billion. Cyprus’ €1.30 billion deficit was smaller than the largest imbalances elsewhere in the EU, but it still marked another step away from external balance.

The data highlight a clear contrast: Cyprus remains in persistent current account deficit, while the EU as a whole continues to generate a substantial external surplus. For an open economy, that gap matters. A widening deficit can signal stronger domestic demand, but it can also point to structural weaknesses in competitiveness, trade balances or income flows that policymakers cannot afford to ignore.

The Future Forbes Realty Global Properties

€50 Million Luxury Resort Planned For Ayia Napa

by THEFUTURE.TEAM

October 22, 2026

Ayia Napa could strengthen its position in the premium tourism market with a proposed €50 million mixed-use resort combining a hotel, serviced apartments, luxury bungalows and a beach club.

Aesara Investments Ltd has submitted an information form to the Department of Environment for a development to operate under the name Atlantica Wavemaster Hospitality. The project is planned for the Limnara area of Ayia Napa, along the coast south of Kryou Nerou Avenue, between the town centre and Cape Greco.

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Hotel, Apartments And Luxury Bungalows

The proposed resort will include a 324-room hotel with capacity for 648 guests, alongside a condo-hotel building containing 20 one- and two-bedroom apartments. Facilities are planned to include restaurants, bars, cafés, a spa with an indoor pool, a gym, shops, a multipurpose hall, a children’s club and a cinema.

A further 33 three-level luxury bungalows, each designed for two guests and featuring a private swimming pool, are planned for the southern part of the site. A beach club with a restaurant and an outdoor pool complex covering more than 6,300 square metres will also form part of the development.

The project includes 321 parking spaces, including 12 for people with disabilities, and 14,196 square metres of landscaped green space featuring local plant species.

Seasonal Hotel Operations And Year-Round Residences

The hotel is expected to operate from March to November, with peak occupancy during the summer season. The condo-hotel apartments, meanwhile, will be available for sale or long-term rental and intended for year-round residence. Owners and tenants will also have access to the resort’s facilities, including its pools, restaurants and fitness areas.

Construction is expected to take 24 months once the required permits are secured. At the busiest stage, the project could employ around 100 workers per day.

Environmental Restrictions Near Cape Greco

The site’s proximity to protected Natura 2000 areas has prompted strict environmental requirements. The Cape Greco Special Protection Area borders the site to the south, while a Special Area of Conservation lies approximately 50 metres away.

Conditions imposed by the Department of Environment include a maximum building height of five floors, or 18.5 metres, and restrictions on permanent structures near the coastline. The project must also use spider-web type glazing and low-intensity lighting to minimise disturbance to local birdlife.

According to the project’s consultants, the design has been prepared to comply with the environmental conditions and the final report on cumulative impacts for the Cape Greco Special Protection Area. The hotel and apartment building are positioned in the central and northern parts of the plot, away from the shoreline.

Within the designated no-build zone, located 40 metres from the boundary of the beach protection zone, only swimming pools are planned. The consultants state that these are not expected to affect protected species in the area.