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).
