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.
