The Central Bank of Cyprus on Thursday published preliminary external statistics showing that Cyprus improved its current account balance, international investment position and external debt levels in 2025.

The data, compiled by the central bank’s statistical department, covered the balance of payments, international investment position and external debt for the year.

According to the preliminary figures, the current account deficit narrowed to €2.34 billion in 2025, compared with €2.85 billion in 2024.

This corresponds to 6.4 per cent of annual GDP in 2025, down from 8.2 per cent in 2024, indicating a robust improvement in external balances.

After adjusting for the impact of special purpose entities (SPEs) by classifying them as non-residents, the current account deficit stood at €2.68 billion in 2025, compared with €2.34 billion in 2024.

On this adjusted basis, the deficit represented 7.4 per cent of GDP in 2025, compared with 8.4 per cent in 2024.

The international investment position (IIP) also improved, with the net liability position decreasing to €28.17 billion in 2025, compared with €29.24 billion in 2024.

When adjusted for the effect of SPEs, the net liability position declined further to €8.93 billion in 2025, from €10.62 billion in 2024.

At the same time, gross external debt fell to €225.19 billion in 2025, compared with €234.41 billion in the previous year.

External assets in debt instruments recorded a slight increase to €223.62 billion, up from €222.74 billion in 2024.

As a result, the net external debt decreased by €10.11 billion, reaching €1.57 billion in 2025.

When adjusted for SPEs, the gross external debt amounted to €59.18 billion in 2025, compared with €59.87 billion in 2024.

On the same adjusted basis, the net external debt stood at minus €30.95 billion in 2025, compared with minus €23.91 billion in 2024.