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Cyprus Trade Deficit Widens Amid Sharp Export Surge

by THEFUTURE.TEAM

February 9, 2026

December Trade Performance

Cyprus closed 2025 with an expanded trade deficit. While a significant increase in exports during December bolstered the country’s market stance, a marked decline in imports overshadowed these gains. According to data released by the Cyprus Statistical Service (Cystat), total imports of goods in December 2025 fell to €1.20 billion from €1.39 billion in December 2024, representing a decrease of 13.1%. Notably, imports from other EU member states dropped to €789.30 million, and those from third countries slid to €415.10 million, from €703.40 million and €682.70 million respectively.

Significant Export Growth

Exports, however, recorded notable growth. Total export value reached €490.5 million in December 2025, up from €375.95 million in December 2024, an increase of 30.5%. Shipments to EU countries amounted to €182.7 million, while exports to third countries rose to €307.8 million from €97.0 million and €279.0 million respectively. A key factor behind the increase was the transfer of economic ownership of vessels, which climbed to €130.1 million compared with €51.4 million in the previous December.

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Year-to-Date Dynamics

Full-year data for 2025 show a mixed overall picture. Total imports for the January–December period rose to €13.55 billion from €12.58 billion in 2024, marking a 7.7% year-on-year increase. Exports reached €5.55 billion, up 7.0% from €5.19 billion the year before. As a result, the overall trade deficit widened to €8.00 billion compared with €7.40 billion in 2024.

Monthly Insights And Sectoral Highlights

Figures for November 2025 support the same trend. Total imports for the month declined to €1.04 billion from €1.16 billion a year earlier, a drop of 10.1%. In contrast, exports of domestically produced goods, including supplies for ships and aircraft, increased to €283.9 million from €244.5 million, a rise of 16.1%. Industrial product exports reached €276.6 million compared with €237.1 million, while agricultural exports edged slightly lower to €6.2 million from €6.4 million. Exports of foreign products also recorded modest gains.

Key Export Sectors

The leading domestic export categories between January and November 2025 were mineral fuels and oils at €2.19 billion, halloumi cheese at €332.2 million, and pharmaceutical products at €318.0 million. It is worth noting that the mineral fuels and oils category largely reflects goods that were imported, processed, and subsequently re-exported, which is an important factor in interpreting Cyprus’ trade structure.

Revisions And Provisional Data

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Lithuania And Cyprus Forge Enhanced Partnership In Tourism And Defence

Expanding Cooperation Beyond The Surface

Kristupas Vaitiekūnas highlighted opportunities for closer cooperation between Lithuania and Cyprus during his visit to Nicosia for the informal ECOFIN meeting. Speaking to the Cyprus News Agency, the Lithuanian finance minister said both countries share common challenges and could expand collaboration in areas including tourism, defence and financial services.

Addressing Shared Challenges

Finance Minister Kristupas Vaitiekūnas said Lithuania and Cyprus face similar security and economic pressures despite their geographic differences. Particular attention was given to emerging security threats, including drone-related risks, alongside the importance of maintaining resilient financial sectors. According to Vaitiekūnas, stronger coordination in those areas could deliver long-term economic and strategic benefits for both countries.

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Focus On Fiscal Stability And Energy Security

Discussions at the ECOFIN meeting are expected to focus on Europe’s economic outlook, energy market volatility and fiscal stability. Kristupas Vaitiekūnas warned that instability in the Middle East could continue affecting oil markets and broader economic performance across Europe. Housing affordability was also identified as a growing challenge, with rising property prices in cities such as Vilnius reflecting broader pressures seen across European markets.

Coordinated Energy Strategy And Future Investments

The Lithuanian finance minister also called for a more coordinated European approach to energy and economic resilience. Vaitiekūnas suggested that targeted and temporary policy measures could prove more effective than large-scale structural reforms in addressing short-term pressures. Lithuania continues to increase investment in renewable energy generation and storage infrastructure as part of efforts to strengthen energy independence and begin producing surplus electricity by 2028.

Support For Ukraine And Enhancing Defence Funding

Finance Minister Kristupas Vaitiekūnas reaffirmed Lithuania’s support for Ukraine, describing the war as a broader struggle tied to European security and democratic values. He also backed accelerating Ukraine’s accession process to the European Union, arguing that deeper integration would strengthen regional stability and economic prosperity. Vaitiekūnas welcomed the EU’s SAFE programme, which is expected to support Lithuania’s defence capabilities while contributing additional assistance to Ukraine.

Looking Ahead To A More Unified Europe

Addressing the European Union’s future budget framework, Kristupas Vaitiekūnas said increased funding for security and defence represented a positive development. At the same time, he warned that reductions in cohesion funding and agricultural support could negatively affect purchasing power and long-term European unity. Lithuania is expected to place continued emphasis on Ukraine and regional security ahead of its upcoming EU Council Presidency in early 2027.