services strength — services strength — Cyprus recorded a marginal current account deficit of approximately €100 million during the third quarter of 2025, according to Eurostat. This figure remained stable compared to the same period in 2024, indicating a steady economic position despite challenges faced by the broader European Union.
While Cyprus managed to keep its deficit unchanged, the EU as a whole saw its current account surplus contract significantly. It fell to €57.30 billion, which is equivalent to 1.2 per cent of GDP. This marks a stark decline from the €80.50 billion surplus in the previous quarter and a much lower figure than the €96.10 billion surplus recorded in the third quarter of 2024.
Despite this narrow overall deficit, Cyprus showed a robust performance in its services account, which posted a surplus of €2.90 billion in the third quarter. This is an increase from the €2.60 billion recorded a year earlier, highlighting the island’s strength in the services sector.
In contrast, the EU experienced a sharp drop in its services account surplus, which plummeted from €37.40 billion to €16.70 billion. This decline offset gains seen in the goods account, where the surplus actually increased to €95.70 billion, up from €86.30 billion in the previous quarter.
The financial landscape within the EU also showed widening deficits in its primary income account, which reached €23.90 billion, and its secondary income account, which stood at €31.10 billion. However, there was a positive indication with the capital account deficit decreasing significantly to €2.20 billion from €19.70 billion in the second quarter.
When looking at global trade partners, the EU recorded its highest current account surplus with the United Kingdom at €75.70 billion, followed by Canada at €12.00 billion and offshore financial centres at €11.50 billion. Other notable surpluses included the USA at €9.20 billion and Brazil at €8.40 billion, while trade with China resulted in a substantial deficit of €58.30 billion.
Within the EU financial account, direct investment assets increased by €33.70 billion, while liabilities rose by €22.50 billion, making the union a net direct investor to the rest of the world with net outflows of €11.10 billion. Portfolio investment, however, saw a net outflow of €76.10 billion, while other investment categories recorded a net inflow of €37.30 billion during this period.
Among the individual member states, sixteen recorded surpluses while eleven were in deficit. Germany posted the highest surplus at €41.00 billion, while Romania reported the largest deficit at €8.30 billion, followed by France at €4.80 billion and Poland at €4.20 billion.
The data provided a detailed look at the financial health of the region, reflecting the shifting dynamics of international trade and investment as 2025 drew to a close. Notably, the figures were rounded by Eurostat after being received from national sources for each member state.
