Cyprus ranked among the European Union countries with the most pronounced deficits in personal remittances in 2024. This is shown by the latest Eurostat data, which measure the difference between funds sent by EU households to countries outside the Union and money received from abroad. For Cyprus, this gap is particularly significant given the size of the national economy.
Personal remittances refer to money transfers that residents of EU countries send to relatives and households in non-EU countries. In 2024, total outbound personal remittances from the EU reached €52.1 billion, up 6% from €49.2 billion in 2023.
Rising Outflows and Slower Inflows
Alongside the growth in outbound transfers, inflows to the EU also increased, but at a much more moderate pace. In 2024, personal remittance inflows to EU countries amounted to €14.8 billion, a 7% increase compared with €13.8 billion in 2023. Over the past five years, outflows from the EU surged by 51%, while inflows rose by only 26%.
This divergence in growth rates led to a substantial widening of the negative balance. By the end of 2024, the EU’s net deficit in personal remittances with third countries reached €37.3 billion, one of the highest levels in recent years.
Cyprus’s Position: –0.9% of GDP
Against the broader EU backdrop, Cyprus stands out as one of the countries with the most significant deficits relative to the size of its economy. According to Eurostat, the net outflow of personal remittances from the island is equivalent to 0.9% of GDP. Other countries in this group include Malta, Belgium, Greece, Spain, and France.
The highest negative figure was recorded in Malta, where the deficit reached 2.8% of GDP. Cyprus ranked second at –0.9%, ahead of Belgium at –0.6%. Greece, Spain, and France each recorded deficits of –0.5% of GDP.
Why Cyprus Remains a “Net Sender” of Money
Experts attribute the persistent outflow of funds to Cyprus’s demographic and labor market characteristics. A key factor is the high share of migrant workers, who regularly transfer part of their income to families outside the EU. Close international family ties among Cypriot households also contribute to the trend.
At the same time, not all EU countries are in deficit. In 2024, personal remittance balances were positive in nine EU member states. Croatia led the group with a surplus of 2.6% of GDP, followed by Bulgaria at 1.3% and Portugal at 1.2%.
EU-Wide Trend and Outlook
At the EU level, the continued rise in outbound remittances combined with more modest inflows is deepening the negative balance with the rest of the world. Eurostat data highlight that financial links between EU households and third countries are becoming increasingly intense, but their impact is distributed very unevenly.
For Cyprus, these figures once again raise questions about labor market structure, migration policy, and the long-term impact of financial outflows on domestic consumption and economic growth. In 2025, analysts expect personal remittances to become a key topic in discussions on the socio-economic sustainability of small but open economies such as Cyprus.