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Cyprus Trade Deficit Widens Amid Sharp Export Surge

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.

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

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.

EU Services Production Grows As Information And Communication Lead

Services production continued to expand across the European Union in August 2026, with information and communication recording the strongest annual growth. However, performance varied significantly between industries and member states, while Cyprus reported a mixed picture, with business services expanding and hospitality-related activities declining.

Information And Communication Leads Sector Growth

Compared with August 2025, services production increased by 5.9% in the euro area and 5.8% across the EU in information and communication. Transportation and storage also recorded growth, rising by 2.1% and 1.9%, respectively.

Real estate activities increased by 1.6% in the euro area and 1.1% in the EU. Professional, scientific and technical activities grew by 1% in both areas, while administrative and support services advanced by 1.1% and 1.3%.

Accommodation and food services was the only major sector to record an annual decline, falling by 0.1% in both the euro area and the EU.

The monthly figures were more mixed. Information and communication remained the strongest performer, increasing by 1.2% in the euro area and 1% across the EU. Real estate activities rose by 0.4% and 0.9%, respectively, while transportation and storage edged up 0.1% in the euro area but declined by 0.2% in the EU.

Administrative and support services recorded modest gains of 0.2% in the euro area and 0.1% in the EU. Accommodation and food services fell by 0.3% and 0.4%, while professional, scientific and technical activities declined by 0.8% and 0.9%, respectively.

Slovakia And Greece Record Strongest Annual Growth

Romania recorded the largest monthly increase in services production, at 5.2%, followed by Malta at 1.8% and Portugal at 1.7%. Luxembourg experienced the steepest decline, with output falling by 5.1%, followed by Bulgaria at 2.3% and Denmark at 1.9%.

On an annual basis, Slovakia led with growth of 10%, followed by Greece at 9.3% and Malta at 7.5%. Hungary recorded the weakest performance, with services production declining by 5.6%. Denmark fell by 5.3%, while Italy recorded a smaller decrease of 0.3%.

Cyprus Sees Growth In Business Services But Weakness In Hospitality

Cyprus’ latest figures show a similar divide between expanding business services and weaker hospitality-related activities. According to the Statistical Service of Cyprus (Cystat), professional, scientific and technical activities recorded the strongest annual growth among the covered sectors in the second quarter of 2026, increasing by 3.4%.

Transportation and storage and information and communication both grew by 2.1%, while real estate activities rose by 1.6%. In contrast, accommodation and food services declined by 3.1% year on year, and administrative and support services fell by 2.2%.

First-half results were more favourable for several sectors. Between January and June, professional, scientific and technical activities grew by 3.5%, transportation and storage by 2.8%, real estate by 2.1% and information and communication by 1.3%.

Nevertheless, administrative and support services contracted by 1% over the six-month period, while accommodation and food services declined by 0.7%.

How Cyprus’ Figures Differ From Eurostat’s Data

The Eurostat and Cystat figures measure different aspects of economic activity and are not directly comparable. Eurostat’s services production index tracks changes in the volume of output, whereas Cystat’s Turnover Value Index for Services and Transport measures the value of sales at current prices.

The reporting periods also differ: Eurostat’s figures cover August, while the cited Cypriot data relate to the second quarter and first half of 2026.

Cystat transmits services production data to Eurostat but does not yet publish a separate national production index. Turnover figures therefore remain the main publicly available national indicator for the sector.

Taken together, the data point to continued growth in several of Cyprus’ business-oriented services, alongside persistent pressure on accommodation, food and administrative support activities.

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