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Cyprus Fiscal Performance: Surplus And Revenue Upturn In H1 2025

by THEFUTURE.TEAM

August 29, 2025

Robust Revenue Growth Fuels Surplus

Cyprus has once again demonstrated fiscal resilience, recording a general government surplus of €840.6 million in the first seven months of 2025—equivalent to 2.4% of the nation’s GDP. While this figure is marginally lower than the €911.7 million surplus (2.7% of GDP) reported during the comparable period in 2024, it underscores a continued commitment to fiscal stability amid robust revenue generation.

Key Revenue Drivers And Trends

Total revenue for the period surged by €391.7 million or 4.8% year-on-year, climbing to €8.50 billion from €8.10 billion in the previous year. Income from taxes on income and wealth rose by 8.8%, reaching €2.03 billion, and social contributions increased 9.2% to €2.77 billion. Notably, property income nearly doubled to €113 million, while taxes on production and imports and net VAT revenue experienced modest gains.

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Shifting Dynamics In Transfers And Expenditures

Despite the strong revenue performance, current transfers fell sharply by 18.3% and capital transfers declined by 54.2%, which reflects strategic repositioning in governmental expenditure. Overall spending rose by €462.8 million, or 6.4%, hitting €7.65 billion. Increases in employee compensation, social benefits, and intermediate consumption contributed to the expenditure growth, while interest payments saw only a minor uptick. Significant capital expenditure growth was observed, with a 22.3% rise culminating in €601.2 million, driven by higher gross capital formation and other capital outlays.

Subsector Performance And Broader Implications

Differentiated performance across government subsectors further delineates Cyprus’s fiscal landscape. The central government achieved a surplus of €126.5 million, local government posted a modest surplus of €8.9 million, and the social security funds delivered a robust surplus of €705.2 million. These results highlight the effective management of public finances and set a strong foundation for addressing both short-term fiscal challenges and long-term economic objectives.

Conclusion

The preliminary fiscal results for the first seven months of 2025 reflect a complex but positive fiscal narrative for Cyprus. With revenue streams expanding and targeted expenditure management, the country is poised to maintain its economic stability and continue its trajectory towards fiscal prudence. Investors and policy makers alike should monitor these trends as indicators of Cyprus’s broader economic health and strategic fiscal direction.

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Cyprus Tourism Shows Strength As Clean Monday Hotel Bookings Surge

by THEFUTURE.TEAM

February 18, 2026

Hotels Embrace A Bright Outlook

Recent figures point to growing momentum in hotel reservations ahead of the Clean Monday weekend, signaling renewed confidence in Cyprus’ tourism sector. Christos Angelides, Director of PASYXE, emphasized the positive trend while also underscoring the need to gradually extend the tourism season beyond traditional peak months.

Favorable Conditions And Festive Spirit

Angelides noted that bookings recorded during the past weekend reached encouraging levels, a development attributed to multiple converging factors. The return of sunny weather after prolonged rainfall, coupled with the festive aura of carnival events and children’s parades in cities such as Nicosia, Limassol, and Paphos, has motivated many to opt for short getaways. This seasonal momentum is further boosted by the strategic initiatives of local hotels, many of which are curating special menus for Clean Monday events, offering guests an enhanced stay experience by keeping them on-premise.

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Positioning For The Off-Season

Despite the positive indicators, Angelides cautioned that average occupancy rates of 25%–30% highlight the need for continued innovation rather than complacency. He described the current period as part of a longer process of building winter tourism and pointed to opportunities in conferences, corporate events and niche travel segments as potential drivers of year-round demand.

Expanding Air Connectivity and Collective Ecosystem

Industry expectations are further supported by expanded air connections from established markets such as the United Kingdom and Israel, alongside increased routes from Armenia, Romania, Bulgaria, Latvia and Poland. While recovery in the German market remains gradual, broader improvements in connectivity continue to strengthen overall tourism prospects. Angelides added that sustainable year-round tourism depends on a wider ecosystem that extends beyond accommodation to include restaurants, museums, cultural venues and community events.

The Path Forward

Cyprus continues to benefit from strong competitive advantages in climate, accessibility and hospitality infrastructure. With coordinated planning across tourism stakeholders and consistent investment in diversified offerings, the sector is positioned to contribute more steadily to the national economy and support a more balanced, all-season travel model.