Nicosia, Cyprus. The Central Bank of Cyprus published preliminary external statistics indicating improvements in the country’s current account balance, international investment position and external debt levels in 2025.
Current account balance
The central bank’s statistical department data covered the balance of payments, international investment position and external debt for the year.
According to preliminary figures, the current account deficit narrowed to €2.34 billion in 2025 from €2.85 billion in 2024.
The deficit corresponded to 6.4 per cent of annual GDP in 2025, down from 8.2 per cent in 2024.
After adjusting for the impact of special purpose entities (SPEs) by classifying them as non-residents, the current account deficit stood at €2.68 billion in 2025, compared with €2.34 billion in 2024.
On this adjusted basis, the deficit represented 7.4 per cent of GDP in 2025, compared with 8.4 per cent in 2024.
International investment position
The international investment position improved, with the net liability position decreasing to €28.17 billion in 2025 from €29.24 billion in 2024.
When adjusted for the effect of SPEs, the net liability position declined to €8.93 billion in 2025 from €10.62 billion in 2024.
External debt and debt instrument assets
Gross external debt fell to €225.19 billion in 2025 from €234.41 billion in the previous year.
External assets in debt instruments increased to €223.62 billion in 2025, up from €222.74 billion in 2024.
What do you think these preliminary figures suggest about Cyprus’s external balances in 2025?
