Cyprus’s economy continues to expand, but the widening imbalance in its external accounts deserves closer attention. The current account records earnings and payments between Cyprus and the rest of the world, covering trade, investment income and transfers (e.g., from the European Commission). The Central Bank of Cyprus’s revised figures put the 2025 deficit at 8.8% of GDP, compared with 6.4% previously reported (Figure 1). By contrast, the 2024 deficit was revised to 5.5% of GDP, down from 8.2% previously reported. These changes show that the gap widened in 2025, reversing the earlier picture of improvement. Figures for the first six months of 2026 show further pressure.
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