Cyprus’ trade deficit widened 15.4% in the first half of 2026 as imports increased and exports declined, even as trade with countries outside the EU expanded during the second quarter. Imports reached €7.30 billion between January and June, up 8.8% from a year earlier, while exports fell 1.2% to €2.62 billion, according to the Cyprus Statistical Service (Cystat).

EU Trade Expands In Second Quarter

Extra-EU imports rose 9.9% in the second quarter from the previous three months to €701.8 billion, while exports increased 5.4% to €680 billion. Year on year, imports were up 11.7% and exports rose 4.5%.

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China remained the EU’s largest source of imports at €153.6 billion, or 21.9% of the total, followed by the United States at €98.7 billion and the United Kingdom at €43.4 billion. The United States was also the largest export market at €127.7 billion, ahead of the United Kingdom and Switzerland.

Cyprus Records Sharp Deficit In June

June brought another significant deterioration in Cyprus’ trade balance. Imports rose 11.9% year on year to €1.29 billion, while exports fell 9.9% to €463 million, producing a monthly deficit of about €826.3 million, almost 30% higher than in June 2025.

Imports from EU countries increased to €730.7 million from €615.1 million, while non-EU imports rose to €558.6 million. Exports to EU markets increased to €212 million, but shipments outside the bloc fell sharply to €251 million from €365.1 million.

May Exports Rebound

May provided a stronger export result, with total exports jumping 59.2% year on year to €521.6 million. Domestic exports rose 63.9% to €348.1 million, while exports of foreign products increased 50.5% to €173.5 million.

Industrial products accounted for €334.7 million of domestic exports, while agricultural exports fell to €12.2 million.

Mineral Fuels Lead Domestic Exports

Mineral fuels and oils remained Cyprus’ largest domestic export category during the first five months of 2026, generating €743.6 million, or 55.5% of the total. Cystat said these products were imported, processed in Cyprus and subsequently re-exported.

Halloumi accounted for €167.5 million, or 12.5%, while pharmaceutical products generated €144.2 million, or 10.8%.

Import Dependence Remains High

Cyprus imported €13.87 billion worth of goods and exported €5.58 billion in 2025, highlighting the country’s persistent trade imbalance.

Cystat said the June figures remain provisional, while several earlier monthly figures have been revised. The first-half data show that Cyprus’ reliance on imports remains significant despite stronger trade flows across the wider European economy.