FX.co ★ Cyprus Trade Deficit Shrinks to Lowest Level in Nearly Two Years

Cyprus’s trade deficit narrowed significantly to €476.6 million in January 2026, from €707.5 million in the same month a year earlier, according to preliminary data. This is the smallest gap in the trade balance since the country last posted a surplus in April 2024.

The improvement was driven by a 13.6% decline in imports, reflecting reduced purchases from both EU partners (-4.9%) and non-EU countries (-22.6%). At the same time, exports increased by 16.6%, supported by a 15.2% rise in shipments to the EU and a 17% increase in exports to third countries.