fiscal surplus — Cyprus recorded a fiscal surplus of €1.44 billion in 2024, amounting to 4.1 per cent of GDP, according to the latest audited data from the European Commission’s Excessive Deficit Procedure. This achievement marks a significant improvement in the island’s financial standing amidst a broader European context, where many nations are grappling with deficits.
Fiscal surplus: Public Debt Continues to Decline
The state statistical service, Cystat, reported that public debt in Cyprus totalled €21.82 billion, equating to 62.8 per cent of GDP. This indicates a steady decline in the country’s debt ratio, showcasing the effectiveness of fiscal management in recent years.
Revenue Growth Highlights Financial Strength
In a further testament to the robust fiscal performance, total revenue for Cyprus increased by €1.01 billion or 7.4 per cent year-on-year, reaching €14.75 billion, up from €13.74 billion in 2023. This growth was primarily driven by enhanced tax revenues from production and imports, which rose by €227.8 million or 5.1 per cent, totalling €4.68 billion.
VAT Revenue on the Rise
Net VAT revenue contributed significantly to the revenue surge, with an increase of €190.8 million or 6.4 per cent, bringing the total to €3.17 billion. This uptick in VAT collections reflects both improved consumer spending and effective tax compliance measures.
Central Bank’s Financial Position Strengthens
The Central Bank of Cyprus (CBC) reported total assets of €30.07 billion as of September 30, 2025. Governor Christodoulos Patsalides noted that intra-Eurosystem claims comprised the largest portion of these assets, amounting to €19.78 billion. Additionally, the bank holds €6.97 billion in securities from euro area residents, alongside €1.45 billion in gold and gold receivables.
Claims on Foreign Residents
The CBC’s financial statement revealed claims on non-euro area residents denominated in foreign currency stood at €1.08 billion, with an additional €565.93 million in claims on non-euro area residents denominated in euro. This diversification in asset holdings is crucial for maintaining financial stability.
Comparative Government Debt Analysis
Amidst a rising trend in government debt across the euro area and the EU, Cyprus has demonstrated one of the most significant decreases in its debt-to-GDP ratio over the past year. Eurostat reported that the general government gross debt to GDP ratio for the 20-nation euro area reached 88.2 per cent by the end of Q2 2025, a slight increase from the previous quarter. Conversely, Cyprus’s proactive fiscal policies have led to a notable decline in its debt metrics.
Cyprus Ranks Well Among EU Nations
While many EU countries have seen their debt ratios increase, Cyprus stands out positively. The report indicates that Greece, Italy, and France remain the leaders in high debt ratios, with Cyprus managing to maintain a healthier fiscal profile.
Urgency for Financial Literacy in Cyprus
As the cost-of-living crisis continues to affect households, the need for enhanced financial literacy is paramount. George Theocharides, chairman of the Cyprus Securities and Exchange Commission (CySEC), emphasised that financial education must be prioritised to protect investors and support the regulatory environment. He highlighted that low financial literacy levels across Europe could undermine the EU’s efforts to improve capital market accessibility.
Investment Knowledge as a Priority
Theocharides pointed out that consumers in the EU, including the UK, tend to hold a smaller proportion of their wealth in equities and mutual funds compared to their G7 counterparts, particularly in the United States. This disparity underscores the importance of fostering a culture of investment knowledge within Cyprus and the wider region.
GDP Performance Compared to EU Averages
In terms of economic output, Cyprus recorded a GDP per inhabitant of €37,100 in purchasing power standards (PPS) in 2023, closely aligning with the EU average of €38,100 PPS. While the island performs better than Greece, Portugal, and Spain, it remains slightly behind Italy and Malta.
Regional Economic Indicators
Cyprus’s economic positioning within southern Europe reflects a stable growth trajectory, particularly when compared to its immediate neighbours. The figures place Cyprus on a level competitive with various EU states, signalling potential for future economic advancements.
Celebrating Innovation and Education
The next generation of roboticists in Cyprus was recognised at the Robotex MRC 2025 Awards Ceremony on October 15, organised by the Cyprus Computer Society and hosted by the Bank of Cyprus. This event brought together young innovators and educators to celebrate achievements in robotics competitions.
Engaging the Youth in Technology
With over 400 attendees participating in various activities, including AI challenges and memory games, the event showcased the growing interest in technology and innovation among Cypriot youth. This focus on STEM education is vital for nurturing future talents in the digital economy.
Upcoming Trade Fair Highlights Opportunities
Looking ahead, the Cyprus Chamber of Commerce and Industry has announced the “HoReCa – ENOEXPO 2025” brokerage event, scheduled for November 5-7, 2025, in Krakow, Poland. This event aims to connect producers and distributors within the hotel and catering industries, presenting significant opportunities for local businesses.
Fostering International Trade Relations
The upcoming fair is expected to attract a diverse range of participants, including food and beverage companies, wine producers, and technology suppliers, thereby enhancing Cyprus’s visibility in international markets.
