Cyprus Posts €420 Million Fiscal Surplus As Revenue Growth Outpaces Spending In First Half Of 2026

by THEFUTURE.TEAM

August 3, 2026

Cyprus recorded a general government fiscal surplus of €420.3 million in the first six months of 2026, equivalent to 1.1% of GDP, according to preliminary figures released by the Cyprus Statistical Service (Cystat). The result was slightly higher than the €416.8 million surplus recorded in the same period of 2025, which also represented 1.1% of GDP.

Tax Revenue Continues To Grow

Government revenue increased by 4.1% year on year to €7.4 billion, up from €7.11 billion in the first half of 2025. Growth was driven mainly by stronger tax collections and social contributions.

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Revenue from taxes on income and wealth rose by €101 million, or 6.3%, to €1.69 billion, while social contributions increased by €181.3 million, or 7.7%, to €2.54 billion. Taxes on production and imports climbed by €207.9 million, or 9.3%, reaching €2.45 billion, supported by an 18% rise in net VAT revenue to €1.73 billion.

Some revenue streams declined over the period. Capital transfers fell by €84.6 million to €23 million, revenue from the sale of goods and services decreased by €23.4 million to €481.8 million, while property income and current transfers dropped to €73.6 million and €136.9 million, respectively.

Spending Rises Alongside Revenue

Government expenditure increased by 4.3% to €6.98 billion, compared with €6.69 billion a year earlier. Social benefits remained the largest spending category, rising by €151.7 million, or 5.5%, to €2.89 billion. Compensation of employees increased by €64.9 million, or 3.4%, to €1.98 billion, while intermediate consumption rose by €88 million, or 13.4%, to €745.4 million. Interest payments edged up by 4.9% to €263.4 million, and current transfers increased by 9.1% to €478.4 million.

Capital Expenditure Declines

Capital expenditure fell by 9% to €580.8 million during the first half of the year. Although gross capital formation increased slightly to €434 million, other capital spending declined by 31% to €146.8 million. Subsidies also fell by 24.8% to €39.4 million.

Overall, the figures show that stronger tax revenues continued to offset higher government spending, allowing Cyprus to maintain a fiscal surplus during the first half of 2026.

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Shein Targets $25 Billion Valuation In Hong Kong IPO As Growth Slows

by News Editor

August 17, 2026

Shein is reportedly targeting a valuation of around $25 billion in its planned Hong Kong IPO, a sharp decline from the nearly $100 billion valuation the online fashion retailer achieved in a 2022 fundraising round.

Two people familiar with the plans said the company was likely to target about $25 billion, while another source put the expected range at $25 billion to $28 billion based on the proposed price band.

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IPO Valuation Falls Sharply

Shein plans to sell up to 8% of its shares in the offering, according to a person familiar with the plans. At a $25 billion valuation, that would translate into an IPO of as much as $2 billion.

The latest target is also below the $30 billion to $40 billion valuation the company was seeking earlier this month as it began meeting with potential investors.

Founded in China in 2012 and now headquartered in Singapore, Shein sells low-cost clothing to consumers in about 160 countries. The company is expected to launch its long-awaited Hong Kong IPO later this week.

Trade Restrictions Weigh On Growth

Shein’s valuation has come under pressure as major markets tighten rules affecting low-cost e-commerce shipments. The European Union, for example, has moved to impose additional fees on cheap parcels from platforms such as Shein and Temu. EU Tightens Rules On Low-Cost E-Commerce Parcels

In the U.S., the removal of an import duty exemption for small packages has also affected the company. Shein reported a $99 million quarterly loss in the first quarter of 2026 as sales growth slowed, while a one-time accounting charge further weighed on its results. Shein Reports First-Quarter Loss Ahead Of IPO

Investors Question Shein’s Growth Prospects

The steep reduction in valuation reflects growing concerns over slower growth, higher trade costs, regulatory pressure and stronger competition across global e-commerce.

Some investors who reviewed Shein’s recent financial statements or attended IPO presentations told Reuters they were skeptical that the company could return to the growth rates that supported its $98.2 billion valuation in 2022. Shein’s Slowing Growth Tests Investor Appetite

A lower IPO valuation could also affect Shein’s existing investors. Under the terms of its IPO filing, the company may have to issue additional shares to certain pre-IPO investors if its valuation falls below agreed thresholds.

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