Cyprus’ Economic Momentum: Stability, Growth, and a Resilient Banking Sector

by THEFUTURE.TEAM

February 7, 2025

Cyprus continues to show economic resilience, with strong fiscal policies and key industries driving growth. Speaking at the Cyprus Shipping Chamber (CSC), Central Bank Governor Christodoulos Patsalides highlighted a sharp decline in public debt and a positive GDP outlook.

Public debt fell from 114% of GDP in 2020 to 74% in 2023, with a target of below 50% by 2028. The CBC forecasts 3.7% growth for 2024, well above the Eurozone’s 0.7%, driven by technology, trade, tourism, financial services, shipping, and construction. Annual GDP growth is expected to remain around 3% through 2027, supported by rising domestic demand and infrastructure investments under the Recovery and Resilience Plan.

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Shipping, Employment, And Inflation

Despite global challenges, Cyprus’ shipping sector remains strong, ranking third in service exports at 17.2%. Unemployment fell to 5% in 2024, with a projected drop to 4.6% by 2027, outperforming the Eurozone’s 6.1%. Inflation eased to 2.2% in late 2024, with forecasts stabilizing near 2% through 2027.

Banking Sector: Progress With Challenges

Cyprus’ banking sector has strengthened, with the non-performing loan (NPL) ratio dropping from 7.9% in December 2023 to 6.5% in September 2024. However, the country still lags behind the EU average of 1.9%. Patsalides urged weaker banks to accelerate improvements.

With sound fiscal policies, a stable banking system, and ongoing investment, Cyprus is well-positioned for sustained growth despite global uncertainties. “We are strategically prepared for the challenges ahead,” Patsalides concluded.

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Cyprus Trade Deficit Narrows To €476.6 Million In January 2026 As Exports Rise

by THEFUTURE.TEAM

March 13, 2026

Economic Overview

Cyprus recorded a notable reduction in its trade deficit in January 2026. According to data from the Cyprus Statistical Service, the deficit narrowed to €476.6 million, compared with €707.5 million in January 2025. The improvement reflects a combination of lower imports and stronger export performance during the period.

Decline In Imports

The latest data from the Cyprus Statistical Service indicates that total imports of goods fell to €994.1 million from €1.15 billion, reflecting a 13.6% decrease over the same period last year. Imports from other European Union member states dropped from €583.0 million to €554.3 million, while those from third countries declined from €568.2 million to €439.8 million. Notably, the transfer of economic ownership of vessels contributed a comparable value both years, registering €79.0 million in January 2026 against €79.9 million in January 2025.

Resilient Export Performance

On the export front, Cyprus recorded robust gains, with total exports of goods rising to €517.5 million compared to €443.7 million in January 2025, marking a 16.6% year-on-year increase. Exports to other EU states grew from €84.4 million to €97.2 million, and those to third countries surged from €359.3 million to €420.3 million. This improvement was further bolstered by a substantial upturn in the transfer of economic ownership of vessels, which soared to €193.5 million in January 2026 from just €11.3 million in the prior year.

Additional Insights From December 2025

Final data for December 2025 showed similar developments in trade activity. Total imports declined by 9.9%, falling to €1.25 billion from €1.39 billion. Domestic exports, including stores and provisions for ships and aircraft, increased by approximately 9.8% to €274.2 million. Exports of foreign products recorded particularly strong growth, rising 77.7% to €224.2 million, compared with €126.2 million in December 2024.

Yearly Trade Highlights

For the full year 2025, mineral fuels and oils remained the largest export category among domestically produced goods, with exports reaching €2.33 billion. Other major contributors to export activity included halloumi cheese and pharmaceutical products, which recorded export values of €356.9 million and €356.2 million, respectively. The latest figures highlight a shift in Cyprus’ trade balance driven by stronger exports and lower imports during the early months of 2026.

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