The Central Bank of Cyprus published preliminary balance of payments, international investment position and external debt statistics for the first quarter of 2026, showing a weaker external position. Cyprus' current account deficit widened to EUR 1,273.8 million from EUR 1,010.1 million in the first quarter of 2025, while the net international investment position moved to a larger net liability position of EUR 28,313.1 million from EUR 28,165.0 million in the fourth quarter of 2025. Gross external debt rose to EUR 226,664.0 million from EUR 225,188.5 million, and with debt instrument assets falling to EUR 223,528.3 million from EUR 223,623.3 million, net external debt increased by EUR 1,570.5 million to EUR 3,135.7 million. The wider current account deficit was driven mainly by a smaller services surplus and a larger secondary income deficit, partly offset by a slightly narrower goods deficit and a smaller primary income deficit. The services surplus fell to EUR 1,249.4 million from EUR 1,465.0 million, reflecting weaker net receipts in financial services, telecommunications, computer and information services, and transport. Financial account transactions recorded net inflows of EUR 1,135.9 million, higher than a year earlier, mainly because portfolio investment outflows eased and other investment inflows increased. On a basis adjusted for special purpose entities by classifying them as nonresidents, the current account deficit widened to EUR 1,370.9 million from EUR 1,121.9 million a year earlier, the net international investment position deteriorated to a net liability position of EUR 10,030.5 million from EUR 8,932.3 million in the previous quarter, and gross external debt increased to EUR 59,943.8 million from EUR 59,179.0 million. The bank noted that the large gap between adjusted and unadjusted international investment position data is linked mainly to ship-owning special purpose entities, whose ships are not recorded as financial assets in the international investment position while their mainly foreign funding is included.
Central Bank of Cyprus2026-06-30
Central Bank of Cyprus publishes preliminary first quarter 2026 external statistics showing wider current account deficit and higher external debt
The Central Bank of Cyprus' preliminary first quarter 2026 external statistics show the current account deficit widened to EUR 1,273.8 million from EUR 1,010.1 million a year earlier, mainly because the services surplus fell and the secondary income deficit increased. The net international investment position deteriorated to a EUR 28,313.1 million net liability position and net external debt rose to EUR 3,135.7 million. Adjusted for special purpose entities, the current account deficit was EUR 1,370.9 million and the net international investment position showed a EUR 10,030.5 million net liability position.