Cyprus records budget surplus of 1.24 billion euros for 2025

The Cyprus Statistical Service (Cystat) released preliminary fiscal results for 2025, confirming a budget surplus of 1.24 billion euros, which accounts for 3.4 percent of GDP. Public debt was reported at 20.08 billion euros, representing 55 percent of GDP. Total government revenue rose by 7.9 percent to 15.92 billion euros, while expenditures increased by 10.3 percent to 14.68 billion euros compared to 2024. Revenue growth was driven by a 10 percent increase in taxes on income and wealth to 4.18 billion euros and an 8.5 percent rise in social contributions to 4.91 billion euros. Conversely, net VAT revenue experienced a slight decline of 0.5 percent, falling to 3.15 billion euros. The data, audited under the European Commission's Excessive Deficit Procedure, also confirmed an economic growth rate of 3.8 percent in real terms for 2025. National accounts were updated to reflect revisions in public finances and balance of payments data. The GDP change in current prices was recorded at 4.9 percent.