Breaking news

Cyprus Posts €567 Million Budget Surplus In First Quarter

by THEFUTURE.TEAM

July 22, 2026

Cyprus recorded a general government surplus of €567.1 million in the first quarter of 2026, according to preliminary figures released by the Cyprus Statistical Service (Cystat). Although slightly below the €600.6 million recorded a year earlier, the country remained in surplus as government revenue continued to grow despite higher public spending. Separate Eurostat data showed Cyprus posting a seasonally adjusted surplus equal to 0.4% of GDP during the quarter.

Revenue Growth Outpaced Expenditure Pressure

Government revenue increased 5.8% year on year to €3.82 billion from €3.61 billion, driven mainly by stronger tax receipts and social contributions.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Social contribution revenue rose 8.2% to €1.28 billion, while taxes on income and wealth climbed 10.9% to €1.09 billion. Revenue from taxes on production and imports also increased, reaching €1.13 billion, supported in part by a 5.5% rise in net value-added tax (VAT) receipts to €764.3 million.

Performance across the remaining revenue categories was mixed. Capital transfers edged up to €5 million, whereas other current transfers declined to €59.1 million. Revenue from the sale of goods and services fell 7.2% to €243.8 million, while property income dropped 31.2% to €13 million.

Spending Continued To Expand

At the same time, government expenditure rose 8% to €3.25 billion from €3.01 billion in the first quarter of 2025.

Social transfers increased 6.5% to €1.36 billion, accompanied by a 2.4% rise in compensation of employees, including imputed social contributions and civil servants’ pensions, to €974.9 million.

Spending also increased across several other categories. Intermediate consumption climbed 9.3% to €303.9 million, other current expenditure jumped 31.8% to €245.4 million, and property income payable rose to €79 million from €72.8 million a year earlier.

Capital expenditure reached €271.8 million, comprising €188.9 million in capital formation and €82.9 million in capital transfers, compared with €223.5 million in the corresponding period of 2025. Subsidies were the only major spending category to decline, falling 19.5% to €16.1 million.

Cyprus Remains A Relative Outlier In Europe

Eurostat’s seasonally adjusted figures showed Cyprus’ budget surplus easing to 0.4% of GDP from 1.2% in the fourth quarter of 2025 and 0.9% in the third quarter.

Even so, the country remained one of the few EU member states to record a surplus. Across the euro area, the government deficit stood at 3.1% of GDP, compared with 3.2% in the previous quarter, while the European Union also posted a deficit of 3.1%, improving from 3.4%.

Revenue across the euro area represented 47.1% of GDP, slightly below the previous quarter’s 47.3%, while expenditure eased to 50.2% from 50.4%. Across the European Union, revenue accounted for 46.6% of GDP compared with 46.7% in the previous quarter, as expenditure declined to 49.8% from 50.1%.

The Future Forbes Realty Global Properties

Only 1% Of Cyprus Farms Use Precision Farming Technologies

Cyprus remains one of the European Union’s least digitised agricultural economies, with just 1% of farms using precision farming technologies in 2023, according to Eurostat.

The findings come as the EU continues to encourage the adoption of digital tools aimed at improving agricultural productivity, efficiency and sustainability.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Internet Access Expands, But Digital Uptake Lags

Internet access has improved across the bloc, although adoption remains uneven. Eurostat found that 43% of EU farms had internet access in 2023, with northern and central European countries leading the way.

Denmark, Germany, Slovakia, Latvia, the Czech Republic and Austria all reported internet access rates above 90%.

Greater connectivity, however, has not translated into widespread digital adoption. Farm management information systems, which help farmers manage day-to-day operations, were used by only about 11% of EU farms. France was a notable exception, with around 60% of farms using the technology.

Precision Farming Concentrated In Larger Operations

Robotics adoption also remained relatively limited, with only about 7% of EU farms using robotic technologies. Overall, around 18% of farms with utilised agricultural area employed at least one precision farming technology or practice in 2023.

These included robotics for plant protection, band spraying, variable-rate application, precision crop monitoring and soil analysis. Despite representing fewer than one in five farms, these holdings accounted for around 44% of the EU’s utilised agricultural area.

The figures suggest that precision farming remains concentrated among larger agricultural businesses, where investment in digital technologies is typically easier to support.

Cyprus Lags Behind EU Leaders

Luxembourg, Finland and Estonia recorded the highest shares of utilised agricultural area managed by farms using precision farming technologies, each exceeding 75%.

At the other end of the ranking, Cyprus recorded just 1%, while Greece and Romania reported between 10% and 15%. The results indicate that Cyprus remains at an early stage of digital adoption in agriculture, even as precision farming becomes more widespread across parts of the European Union.