Cyprus current account deficit widens in second quarter of 2026

The Central Bank of Cyprus released provisional data on October 5, 2026, revealing a significant widening of the country's current account deficit during the second quarter of 2026. The deficit reached €1.3056 billion, compared to €697.2 million reported during the same period in 2025. When adjusting for the impact of special purpose entities (SPEs), the deficit was recorded at €1.0335 billion, up from €607.3 million in the second quarter of the previous year.

The report also highlights that the international investment position recorded a net liability of €30.8793 billion in the second quarter of 2026, rising from €30.5193 billion in the first quarter of the same year. Excluding SPEs, the net liability position stood at €12.3782 billion. Meanwhile, the gross external debt increased to €228.5988 billion in the second quarter, up from €227.5196 billion in the first quarter. Despite the increase in gross debt, the net external debt saw a decrease of €457.1 million, settling at €8.5254 billion.

These statistics reflect the country’s balance of payments and overall financial standing in relation to the global economy. The data serves as a critical indicator of Cyprus's macroeconomic performance, illustrating increased financial pressure compared to the previous year.