Cyprus maintains services strength despite broader EU surplus dip

Cyprus recorded a marginal current account deficit of approximately €100 million during the third quarter of 2025, according to Eurostat.

At the same time, the broader European Union saw its overall surplus contract significantly compared to the previous year.

While the island’s deficit remained stable compared to the €100.00 million recorded in the same period of 2024, the EU seasonally adjusted current account surplus fell to €57.30 billion, representing 1.2 per cent of GDP.

This figure marks a notable decline from the €80.50 billion surplus seen in the second quarter of 2025 and is substantially lower than the €96.10 billion surplus recorded in the third quarter of 2024.

Despite the narrow overall deficit, Cyprus saw a robust performance in its services account, which posted a surplus of €2.90 billion in the third quarter, an increase from the €2.60 billion recorded a year earlier.

Across the EU, the surplus of the goods account actually increased to €95.70 billion, up from €86.30 billion in the previous quarter, but this was offset by a sharp drop in the services account surplus, which fell from €37.40 billion to €16.70 billion.

The EU also faced widening deficits in its primary income account, which grew to €23.90 billion, and its secondary income account, which reached €31.10 billion.

On a brighter note for the bloc, the deficit of the capital account decreased significantly, dropping to €2.20 billion from a much larger €19.70 billion in the second quarter.

In terms of global trade partners, the EU recorded its highest current account surplus with the United Kingdom at €75.70 billion, followed by Canada at €12.00 billion and offshore financial centres at €11.50 billion.

Other notable surpluses were maintained with the USA at €9.20 billion and Brazil at €8.40 billion, while trade with China resulted in a substantial deficit of €58.30 billion.

Within the EU financial account, direct investment assets increased by €33.70 billion against a liabilities increase of €22.50 billion, making the union a net direct investor to the rest of the world with net outflows of €11.10 billion.

Portfolio investment saw a net outflow of €76.10 billion, while other investment categories recorded a net inflow of €37.30 billion during the period.

Among individual member states, sixteen countries recorded surpluses while eleven remained in deficit, with Germany posting the highest surplus at €41.00 billion.

Romania reported the largest deficit at €8.30 billion, followed by France at €4.80 billion and Poland at €4.20 billion.

The data provided a detailed look at the financial health of the region, reflecting the shifting dynamics of international trade and investment as 2025 drew to a close.

Finally, it should be noted that the figures were rounded by Eurostat, after being received by national sources for each member state..