Imports of goods increased in March 2026, while exports recorded a more modest rise, leading to a further deterioration of the trade balance in the first quarter of the year, according to preliminary external trade data released on Monday by the Statistical Service of Cyprus.
In March, total imports reached pound 1.21 billion, marking an 11.6% year-on-year increase compared with pound 1.08 billion in the same month of 2025. The rise was driven by both purchases from EU Member States, which amounted to pound 710 million, and from third countries, at pound 500.7 million. It is noted that imports also include transfers of economic ownership of ships and aircraft worth pound 20.3 million, significantly lower than last year.
On the exports side, a 6.7% increase was recorded, with total exports reaching pound 506.9 million. Exports to the EU amounted to pound 117.7 million, while exports to third countries stood at pound 389.2 million. However, ship transfers also affected these figures, as they declined to pound 41.2 million from pound 98.1 million in March 2025.
On a quarterly basis, imports rose marginally by 1% to pound 3.32 billion, while exports fell significantly by 9.8% to pound 1.28 billion. This development led to a widening of the trade deficit to pound 2.05 billion, compared with pound 1.88 billion in the corresponding period of 2025.
Sharp drop in exports in February
Final data for February show a steep decline in exports, particularly of domestically produced goods. Specifically, domestic exports fell by 52.4% to pound 153.3 million, compared with pound 322.2 million in February 2025.
The decline was mainly observed in industrial products (excluding supplies to ships and aircraft), which dropped sharply to pound 143.2 million from pound 311.7 million a year earlier. By contrast, exports of agricultural products remained almost unchanged at pound 9.3 million.
At the same time, exports of foreign goods decreased by 47.6% to pound 91.1 million, reflecting a broad-based slowdown in export activity.
Fuels, pharmaceuticals and halloumi lead exports
During the first two months of the year, the main pillars of domestic exports were mineral fuels and oils (pound 193 million), pharmaceutical products (pound 62.8 million) and Halloumi (pound 52.4 million).