Cyprus current account deficit nearly doubles to €1.31 billion in Q2 2026
Cyprus’ current account deficit widened sharply in Q2 2026, while its net external debt position improved, according to provisional Central Bank of Cyprus data.
Nicosia, Cyprus. Cyprus’ current account deficit nearly doubled in the second quarter of 2026, while its net external debt position improved, according to provisional data released by the Central Bank of Cyprus (CBC) on Monday.
Current account deficit widens
The deficit reached €1.31 billion in Q2 2026, compared with €697.20 million in the same quarter of 2025. The increase reflected a substantially larger gap in Cyprus’ transactions with the rest of the world than a year earlier.
The CBC’s latest external statistics cover the balance of payments, international investment position and external debt for the second quarter.
Excluding the impact of special purpose entities (SPEs) by treating them as non-residents, the current account deficit stood at €1.03 billion in Q2 2026, up from an adjusted deficit of €607.30 million in Q2 2025.
International investment position deteriorates
Cyprus’ international investment position also deteriorated during the quarter. The measure, which records the difference between residents’ financial assets held abroad and liabilities owed to foreign investors, showed a net liability position of €30.88 billion at the end of Q2, compared with €30.52 billion at the end of Q1.
Adjusted for the impact of SPEs, the net liability position was considerably smaller, at €12.38 billion in Q2, compared with €12.32 billion in Q1.
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