Preliminary economic data from the Statistical Service of Cyprus paints an optimistic picture for 2024, forecasting a significant fiscal surplus of €1.5 billion, equivalent to 4.5% of the nation’s GDP. This is more than double the surplus achieved in 2023, which stood at €631.5 million or 2% of GDP.
Revenue Growth At 7.8%
For 2024, total revenues are projected to rise to €14.83 billion, marking a notable increase of €1.07 billion compared to 2023 (+7.8%). Key revenue boosts stem from the following areas:
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- Production and Import Taxes: €4.68 billion (+5.5%)
- Net VAT Revenues: €3.14 billion (+5.6%)
- Income and Wealth Taxes: €3.81 billion (+16.7%)
- Service Revenue: €1.09 billion (+28.1%)
- Social Contributions: €4.5 billion (+2.7%)
Conversely, capital transfers saw a decrease of 38.4%, settling at €220.4 million.
Expenditure Increase Marginal At 1.5%
Total expenditures for 2024 are anticipated to be €13.33 billion, a nominal rise of €197.4 million (+1.5%) compared to 2023.
Notable expenditure increases occurred in:
- Employee Compensation: €3.86 billion (+7.5%)
- Social Benefits: €5.3 billion (+7.4%)
- Interest Payments: €433.9 million (+6.3%)
Reduction areas included:
- Current Transfers: €887.7 million (-24.2%)
- Capital Accounts: €1.17 billion (-24.5%)
- Subsidies: €153.4 million (-3.6%)
The projected fiscal surplus of 4.5% of GDP underscores Cyprus’s fiscal stability and increased tax revenue intake, despite moderate expenditure growth. This optimism aligns with Cyprus’s promising inflation outlook as seen in recent analysis.
