Cyprus recorded an improvement in its current account balance and international investment position (IIP), along with a reduction in gross external debt, according to preliminary external statistics (balance of payments, international investment position, and external debt) for the second quarter of 2025 (Q2 2025), published by the Central Bank of Cyprus.

According to the preliminary balance of payments data for Q2 2025, Cyprus’ current account balance showed improvement, with the deficit decreasing from €341.7 million in Q2 2024 to €257.3 million in Q2 2025.

When adjusted for the impact of special purpose entities (SPEs)—that is, classifying SPEs as non-residents—the deficit stood at €280.9 million in Q2 2025, compared to €363.6 million in Q2 2024.

The international investment position (IIP) also improved slightly in Q2 2025, showing a net liability position of €30,094.9 million, compared with €30,420.9 million in Q1 2025.

After adjusting for the effect of SPEs, the IIP recorded a net liability position of €11,480.9 million in Q2 2025, down from €11,871.7 million in Q1 2025.

The report further notes that gross external debt decreased to €232,988.2 million in Q2 2025 from €233,599.8 million in Q1 2025. External assets in debt instruments fell to €223,083.6 million from €223,482.2 million in Q1 2025. Consequently, net external debt declined by €213.0 million, reaching €9,904.6 million in Q2 2025.

When adjusted for the impact of SPEs, gross external debt amounted to €59,044.1 million in Q2 2025, compared with €59,569.7 million in Q1 2025, while the corresponding indicator for net external debt fell to -€24,313.4 million in Q2 2025 from -€23,924.4 million in Q1 2025.