Cyprus is grappling with a widening trade deficit as imports of goods have surged faster than exports in the first five months of 2026. According to data released by the state statistical service, Cystat, the total value of imports reached €5.99 billion between January and May 2026, a notable rise from €5.55 billion during the same period in 2025, marking an 8.0 per cent increase.
Exports, on the other hand, showed modest growth. The total value of goods exported from Cyprus in the first five months of 2026 was €2.15 billion, slightly up from €2.14 billion a year earlier, reflecting a rise of just 1.0 per cent. Consequently, the trade deficit for Cyprus expanded to €3.84 billion, up from €3.42 billion during the same timeframe last year.
Trade deficit: May Sees Significant Import Growth
In May 2026 alone, imports reached €1.31 billion, a sharp increase of 22.3 per cent compared to €1.07 billion in May 2025. This growth was driven by imports from both EU member states and third countries, which amounted to €705 million and €604.10 million, respectively. Notably, the transfer of economic ownership of vessels and aircraft contributed €79.90 million to the overall import figures.
Exports Experience Robust Increase
May also brought impressive figures for exports. The total value of goods exported reached €520.40 million, a significant increase of 58.9 per cent from €327.60 million in May 2025. Exports to other EU member states rose to €127.30 million, while exports to non-EU countries surged to €393.10 million, up from €211.10 million in May 2025.
April Data Highlights Mixed Results
Cystat’s final data for April 2026 revealed that imports amounted to €1.37 billion, an increase of 14.9 per cent from €1.19 billion in April 2025. However, domestic exports showed a decline, particularly in the sector of products meant for ships and aircraft, which fell to €220.90 million from €277.70 million a year earlier, a decrease of 20.5 per cent.
Despite the downturn in some categories, exports of foreign products rose to €142.20 million, marking a 22.7 per cent increase compared to the previous year. For the January-April 2026 period, the top domestically produced exports included mineral fuels and oils valued at €517.40 million, halloumi cheese at €130.20 million, and pharmaceutical products at €123.00 million.
Trade Balance Under Pressure
The figures indicate that while Cyprus is experiencing a surge in export activity, particularly to non-EU markets, the overall trade balance remains under pressure. The significant growth in imports continues to outpace exports, which poses challenges for the country’s economic landscape as it seeks to improve its trade balance.
