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Cyprus Achieves Record-Breaking Fiscal Surplus: A Look At The Numbers

by THEFUTURE.TEAM

January 9, 2025

Cyprus is closing the year on a high note with impressive fiscal results, according to preliminary data released by the Statistical Service of Cyprus (CYSTAT). From January to November 2024, the country recorded a fiscal surplus of €1,420.8 million, equivalent to 4.2% of GDP. This marks a significant leap from the €709.9 million surplus (2.3% of GDP) achieved during the same period in 2023.

Revenue Growth Fuels Surplus

The fiscal surplus was largely driven by robust revenue growth, which surged by €809.8 million (6.7%), reaching €12,844.8 million in 2024 compared to €12,035 million in 2023.

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Breaking down the figures:

Taxes on production and imports rose by €255 million (6.2%) to €4,349.6 million, with net VAT revenue climbing €217.2 million (7.8%) to €2,984.6 million.
Taxes on income and wealth saw an impressive increase of €425.7 million (16%), totalling €3,082.3 million.
Property income jumped by €42 million (45.4%) to €134.6 million.
Revenue from goods and services grew by €163.7 million (21.6%) to €920.3 million.
Social contributions edged up by €95 million (2.4%) to €3,980.7 million.

On the flip side, current transfers dropped by €122.7 million (29.1%) to €299.1 million, and capital transfers fell by €48.9 million (38.5%) to €78.2 million.

Modest Rise in Expenditures

Government spending increased by a modest €98.9 million (0.9%), totalling €11,424 million in 2024 compared to €11,325.1 million in 2023.

Highlights include:

Intermediate consumption grew by €119 million (10.8%) to €1,223.4 million.
Compensation of employees rose by €236.3 million (7.7%) to €3,292.4 million.
Social benefits climbed €417 million (9.8%) to €4,679.3 million.
Interest payments increased by €23.4 million (6.1%) to €407.4 million.

However, certain expenditures saw declines:

Subsidies dropped by €8.5 million (5.9%) to €134.5 million.
Current transfers fell by €314.4 million (29.6%) to €747.6 million.
The capital account decreased by €373.8 million (28.5%) to €939.4 million, with notable reductions in other capital expenditures by €400 million (71.7%).

A Step Forward for Cyprus

These results highlight Cyprus’s continued fiscal discipline and its ability to generate significant revenues amidst global economic challenges. As the government balances spending with revenue growth, the country solidifies its position as a model of economic resilience in the region.

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Only 1% Of Cyprus Farms Use Precision Farming Technologies

Cyprus remains one of the European Union’s least digitised agricultural economies, with just 1% of farms using precision farming technologies in 2023, according to Eurostat.

The findings come as the EU continues to encourage the adoption of digital tools aimed at improving agricultural productivity, efficiency and sustainability.

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Internet Access Expands, But Digital Uptake Lags

Internet access has improved across the bloc, although adoption remains uneven. Eurostat found that 43% of EU farms had internet access in 2023, with northern and central European countries leading the way.

Denmark, Germany, Slovakia, Latvia, the Czech Republic and Austria all reported internet access rates above 90%.

Greater connectivity, however, has not translated into widespread digital adoption. Farm management information systems, which help farmers manage day-to-day operations, were used by only about 11% of EU farms. France was a notable exception, with around 60% of farms using the technology.

Precision Farming Concentrated In Larger Operations

Robotics adoption also remained relatively limited, with only about 7% of EU farms using robotic technologies. Overall, around 18% of farms with utilised agricultural area employed at least one precision farming technology or practice in 2023.

These included robotics for plant protection, band spraying, variable-rate application, precision crop monitoring and soil analysis. Despite representing fewer than one in five farms, these holdings accounted for around 44% of the EU’s utilised agricultural area.

The figures suggest that precision farming remains concentrated among larger agricultural businesses, where investment in digital technologies is typically easier to support.

Cyprus Lags Behind EU Leaders

Luxembourg, Finland and Estonia recorded the highest shares of utilised agricultural area managed by farms using precision farming technologies, each exceeding 75%.

At the other end of the ranking, Cyprus recorded just 1%, while Greece and Romania reported between 10% and 15%. The results indicate that Cyprus remains at an early stage of digital adoption in agriculture, even as precision farming becomes more widespread across parts of the European Union.