Newsroom
Cyprus may be small, but its trade numbers are starting to send a big signal: the island is buying less from abroad while selling more of its own products overseas, a mix that could help ease pressure on the economy.
Preliminary figures from the Statistical Service show that Cyprus’ trade deficit, the gap between imports and exports, dropped sharply in January 2026. The shortfall was €476.6 million, down from €707.5 million in January 2025, a decrease of over €230 million. In other words, the country spent less on foreign goods while making more from its own.
Why it matters: a smaller trade deficit can mean a stronger currency, better economic stability, and more room for local businesses to grow.
The numbers tell a story of both sides of the ledger:
- Imports fell 13.6% to €994.1 million in January, with less coming in from EU countries (€554.3 million) and from the rest of the world (€439.8 million).
- Exports jumped 16.6% to €517.5 million, thanks largely to pharmaceutical products, halloumi, and mineral fuels. Exports to non-EU countries surged to €420.3 million, up from €359.3 million a year earlier.
- Big-ticket items like the transfer of ownership of ships also boosted the numbers, €193.5 million in January 2026 compared to just €11.3 million in January 2025.
Looking back at the end of 2025, the pattern is similar: imports were down nearly 10% in December, while exports were up almost 10%. Industrial products, farm goods, and even supplies to ships and planes all contributed to the increase.
In simple terms: Cyprus is selling more, buying less, and keeping more money on the island. For everyday people, this could mean a stronger economy, more job opportunities, and a boost to local industries that make halloumi, medicines, and other products Cyprus is proud to export.
It’s still early in the year, but if the trend continues, Cyprus could be heading toward a healthier trade balance, and that’s a story worth paying attention to, even if you usually skip the economics pages.
