Politis

Cyprus Current Account Improves, Investment Position Worsens

Published January 7, 2026, 20:09
Cyprus Current Account Improves, Investment Position Worsens

Cyprus's current account balance showed improvement in the third quarter of 2025, with the deficit decreasing from €116.1 million to €95.0 million compared to the same quarter in 2024. However, adjusting for the impact of Special Purpose Entities (SPEs), the deficit widened to €304.0 million in Q3 2025, from €204.3 million in Q3 2024. Concurrently, Cyprus's international investment position (IIP) deteriorated, recording a net liability position of €31,523.4 million in Q3 2025, compared to €30,094.9 million in Q2 2025. With the adjustment for SPEs, the IIP showed a net liability position of €13,386.8 million in Q3 2025, versus €11,480.9 million in Q2 2025. The gross external debt increased to €234,868.8 million in Q3 2025, from €232,988.2 million in Q2 2025, while the net external debt rose by €6.3 million, to €9,910.9 million in Q3 2025. External asset holdings in debt instruments also increased. After adjusting for SPEs, gross external debt reached €59,824.1 million in Q3 2025, while the net external debt ratio increased to -€24,223.3 million. The Central Bank of Cyprus released these figures as part of the preliminary external statistics for the third quarter of 2025.