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Cyprus’ trade deficit has ballooned by nearly €1 billion this year, reaching €5.15 billion between January and August 2025, as imports outpaced exports by a wide margin.
According to new data from the Cyprus Statistical Service, total imports jumped 14.2% to €8.88 billion, compared to €7.78 billion in the same period last year. Exports, meanwhile, rose just 2.8% to €3.73 billion, not nearly enough to close the gap.
Economists say the figures reflect Cyprus’ continued dependence on imports, from vehicles and machinery to consumer goods, as well as a notable increase in ship ownership transfers, which added tens of millions to August’s import total alone.
August proved particularly busy: imports climbed 11.9%, while exports surged 82.7%, largely due to shipping-related transactions. Exports to non-EU countries more than doubled, from €217 million to €457 million, showing some signs of diversification in trade partners.
Final July figures also confirmed the trend, with imports up 19.4% and domestic exports, mostly industrial products, rising 76.7%.
Still, the overall picture remains lopsided. Cyprus continues to consume more than it produces, leaving the economy vulnerable to external costs and price swings.
As one economist noted, “Imports tell you an economy is active, but when exports can’t keep up, that activity comes at a cost.”
For Cyprus, narrowing the gap will mean finding new ways to boost exports beyond shipping and re-exports and building a more balanced trade future.
