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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.

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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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Cyprus Introduces €200 Million Support Measures To Cut Energy And Food Costs

by THEFUTURE.TEAM

March 27, 2026

Comprehensive Relief Measures For A Resilient Economy

The government of Cyprus introduced support measures exceeding €200 million to reduce household expenses and support key sectors. The package targets energy costs, food prices, tourism and agriculture. Measures come in response to rising costs and supply pressures. Implementation begins in April and May 2026.

Energy And Fiscal Reforms

The government will reduce VAT on electricity for households to 5% from May 1, 2026, to March 31, 2027. The measure is expected to lower energy bills. Special consumption tax on transport fuels will decrease by 8.33 cents per liter between April and June 2026. Policy targets fuel-related costs.

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Broadening The Zero VAT Initiative

Authorities will expand the list of products with zero VAT. Meat, poultry and fish will be included from April 1 to September 30, 2026. Existing zero-VAT categories already include fruits and vegetables. The government also decided not to introduce a green tax on fuels, avoiding an additional cost of about 9 cents per liter.

Sector-Specific Supports

The package includes a 30% wage subsidy for hotel employees for April 2026. Measure supports tourism businesses during the early season. Support for airlines aims to maintain connectivity with key destinations. The agriculture sector will receive subsidies covering 15% of costs for fertilizers and supplies in April and May.

Economic Stability, National Security

President Nikos Christodoulidis said economic stability remains a priority for the government. He noted that growth, fiscal balance and inflation trends support current policy decisions. Statement links economic policy with broader national priorities. The government continues to monitor external risks.

Ensuring Consumer Protection

Furthermore, the government has mandated rigorous market oversight and intensified inspections to prevent exploitative pricing during this period of economic intervention. This proactive stance ensures that the benefits of the measures directly serve the citizens without unintended inflationary impacts.