Cyprus' current account deficit nearly doubles in Q2 2026 amid mixed external debt trends
Cyprus’ current account deficit widened significantly in the second quarter of 2026, nearly doubling to €1.31 billion from €697.20 million recorded in the same period last year, according to provisional data released by the Central Bank of Cyprus (CBC). This indicates a substantially larger gap between Cyprus’ transactions with the rest of the world compared to 2025.
Despite the deteriorating current account, Cyprus’ net external debt position improved slightly. The gross external debt increased to €228.60 billion, while external assets in debt instruments also grew, leading to a net external debt reduction of €457.10 million to €8.53 billion. When adjusted to exclude special purpose entities (SPEs), these figures show a more favorable balance, with Cyprus’ external debt-related assets surpassing its liabilities.
The country's international investment position, however, showed a small deterioration, with a net liability of €30.88 billion at the end of Q2, up from €30.52 billion in the previous quarter. The CBC noted all released figures are provisional and may be revised as more data becomes available.
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