Cyprus records budget surplus and debt reduction in 2025

In 2025, Cyprus maintained a strong fiscal position within the European Union, reporting a budget surplus of €1.24 billion, which corresponds to 3.4% of its GDP. According to preliminary data from the Cyprus Statistical Service (Cystat), which align with the European Commission's Excessive Deficit Procedure, public debt reached €20.08 billion or 55% of GDP. Government revenue increased by 7.9% to €15.92 billion, while total expenditure rose by 10.3% to €14.68 billion. The country's GDP growth rate was 3.8% in real terms, and 4.9% at current prices. Some Eurostat figures initially suggested a 4% surplus in Q4, while others specified a 3.4% annual figure, highlighting Cyprus as one of the few EU countries to avoid a deficit. In contrast, the broader euro area recorded a 2.9% deficit. Cyprus remains below the EU's 60% debt threshold, while most other EU nations saw their debt-to-GDP ratios increase.