Cyprus has kicked off 2025 on a high note, recording a general government surplus of €566.9 million, equivalent to 1.6% of GDP, as per CySTAT’s preliminary fiscal results.
Compared to January 2024, which saw a surplus of €476.5 million (1.4% of GDP), this year marks a significant improvement. Revenue rose by €194.3 million, a 14.3% increase from 2024’s €1,360.6 million.
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Key Revenue Increasers
Taxes on production and imports grew by 11.3%, reaching €396.3 million. Notably, VAT netted €249.7 million, a 3.5% hike.
Income-related taxes added €52.2 million, totaling €592.7 million. Worried about property income scarcity? Good news: it soared by 37.4% to €10.3 million.
Assessment Of Expenditures
Expenditure in January 2025 rose to €988.0 million, up by 11.8% from 2024. Employee compensations witnessed a substantial increase, rising by €28.4 million. Social benefits followed suit, augmenting by €49.6 million.
While capital transfers saw a notable slump, the capital account experienced a healthy boost of 29.8%, reaching €31.6 million.
For those intrigued by Cyprus’ financial journey, comparing this growth to different economic metrics, such as Euro Area’s revised growth forecast, can provide deeper insights.
It’s worth mentioning that data absences have resulted in estimates being made for the Local Government Subsector. As Cyprus continues to navigate its financial landscape, these surpluses reflect a nation steadily poised for growth.
