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Cabinet approves 2025 Fiscal Programme, growth expected at 3.7% this year

The Cabinet approved the draft 2025 Fiscal Programme of the Republic, Government Spokesperson Konstantinos Letymbiotis has said, noting that growth this year is expected to reach 3.7%.

In statements after the 9 October meeting of the Cabinet, the Spokesman said that the Minister of Finance will submit the Fiscal Programme to the General Directorate of Economic and Financial Affairs of the European Commission.

He said that this is the second evaluation that takes place in the autumn of each year on the basis of plans and budget programmes submitted by the countries by October 15 each year. The evaluation, he said, concerns the revised, expected fiscal results for the current year and the revised forecasts, mainly for the next year, on the basis of the government’s budget plan for the coming year.

The Spokesperson said that the EU evaluates the plans no later than November 30 each year. Based on the main macroeconomic scenario included in the draft fiscal program 2025, he said, the Cypriot economy is expected to grow at a rate of 3.7% in 2024 in real terms.

Inflation, based on the harmonized index of consumer prices, is expected to be 2.2% in 2024 and fall further to 2% in 2025-2027, he added.

Letymbiotis noted that the fiscal balance of the general government in 2024 is expected to have a surplus of 3.9% as a percentage of GDP.

Concluding, he said that public debt for 2024 is estimated to be 68.9% of GDP, compared to 77.4% of GDP at the end of the previous year.

Kuwaiti Ambassador Advocates For Strengthened Ties Between Cyprus And GCC Nations

The Kuwaiti Ambassador to Cyprus, Abdullah Musaed Al-Khorafi, has underscored the vital need to deepen dialogue between Kuwait, Cyprus, and the Gulf Cooperation Council (GCC) nations, as well as the broader Arab world. He made these remarks during a luncheon held at his Nicosia residence on February 4, which brought together key diplomatic figures.

The event was hosted in honor of Annita Demetriou, President of the House of Representatives of Cyprus, and was part of a series of high-level diplomatic gatherings organized by the Kuwaiti Embassy in Cyprus. Among the attendees were the ambassadors and heads of Arab diplomatic missions in Cyprus, as well as representatives from the U.S. and Swiss embassies.

Ambassador Al-Khorafi took the opportunity to lead an expanded discussion on pressing regional and international developments, focusing particularly on the Middle East. Topics included the ongoing crises in Syria, Lebanon, and Palestine, with a strong emphasis on how these events affect regional stability.

The luncheon also served as a platform for talks on enhancing cooperation between Cyprus and GCC countries, as well as broader Arab nations. The discussions highlighted opportunities to strengthen ties in key sectors such as education, culture, trade, investment, and tourism. The aim is to build closer connections between people and foster mutual benefits.

In his opening speech, Ambassador Al-Khorafi stressed the importance of promoting dialogue at both governmental and societal levels, not only between Kuwait and Cyprus, but across the entire GCC and Arab world. He expressed his gratitude for the presence of President Demetriou, noting that her participation symbolized Cyprus’ commitment to advancing relations with Kuwait and its regional partners.

President Demetriou, in turn, thanked the ambassador for his hospitality, reflecting on the fruitful discussions and shared goals for enhancing Cyprus’ relations with Kuwait and the wider Arab world. She reaffirmed the importance of cooperation and strategic partnerships between Cyprus and the GCC countries, especially in areas of mutual interest and concern.

This meeting, according to Demetriou, was a testament to the strong diplomatic relations between Cyprus and Kuwait, as well as the ongoing efforts to broaden and deepen ties with the Arab world.

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