Cyprus recorded an improvement in its current account balance in the third quarter of 2025, with the deficit narrowing to €95.00 million, according to the Central Bank of Cyprus.

The deficit was lower than the €116.10 million recorded in the third quarter of 2024, the Central Bank said in its preliminary external statistics release.

In its announcement covering preliminary balance of payments, international investment position and external debt data for the third quarter of 2025, the Central Bank said the current account balance showed a clear improvement year on year.

After adjusting the data to account for the impact of special purpose entities, classified as non-residents, the current account deficit stood at €304.00 million in the third quarter of 2025.

This compared with an adjusted deficit of €204.30 million in the third quarter of 2024.

The international investment position deteriorated in the third quarter of 2025, posting a net liability position of €31.52 billion.

This represented a worsening compared with the net liability position of €30.09 billion recorded in the second quarter of 2025.

When adjusted for the impact of special purpose entities, the international investment position showed a net liability position of €13.39 billion in the third quarter of 2025.

This compared with an adjusted net liability position of €11.48 billion in the second quarter of 2025.

The Central Bank reported that gross external debt increased to €234.87 billion in the third quarter of 2025.

This was higher than the €232.99 billion recorded in the second quarter of 2025.

External financial assets in the form of debt instruments also rose, reaching €224.96 billion from €223.08 billion in the second quarter of 2025.

As a result, net external debt increased by €6.30 million, reaching €9.91 billion in the third quarter of 2025.

After adjusting for the impact of special purpose entities, gross external debt stood at €59.82 billion in the third quarter of 2025.

This compared with €59.04 billion in the second quarter of 2025.

The corresponding net external debt indicator, adjusted for special purpose entities, rose to minus €24.22 billion in the third quarter of 2025.

This compared with minus €24.31 billion in the second quarter of 2025, the Central Bank concluded.