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Cyprus Posts €593.4 Million Fiscal Surplus In First Quarter

by THEFUTURE.TEAM

The Cyprus government recorded a fiscal surplus of €593.4 million in January-April 2026, according to preliminary data published by the Cyprus Statistical Service (Cystat). This surplus, representing 1.5% of GDP, reflects a slight contraction from last year’s €614 million (1.7% of GDP), yet underscores the resilience of the nation’s fiscal management.

Surplus Figures And Revenue Growth

Total revenue increased by €194.4 million (4%), reaching €4.99 billion from €4.80 billion in the same period of 2025. This robust revenue growth contributed significantly to the overall fiscal performance.

Key Revenue Drivers

Several revenue streams bolstered the fiscal surplus, including:

  • Income And Wealth Taxes: Rising by €121 million (10.3%), these taxes reached €1.29 billion.
  • Social Contributions: Increased by €128.9 million (8.3%) to total €1.69 billion.
  • Taxes On Production And Imports: These grew by €42.5 million (2.9%), totaling €1.53 billion.
  • Net VAT Revenue: Up by €53.5 million (5.4%), peaking at €1.05 billion.
  • Capital Transfers: Recorded a marginal increase of €8.6 million, rising to €16.4 million.

Areas Of Decline And Rising Expenditures

Conversely, property income declined by €23.6 million (27.8%), and revenue from the sale of goods and services decreased by €43.6 million (12%). Current transfers also dropped by €39.4 million (31.2%). On the expenditure side, total spending rose by €215 million (5.1%) to €4.4 billion, driven by higher intermediate consumption, increased social benefits, and a rise in compensation for employees.

Mixed Fiscal Trends And Future Implications

Additional fiscal dynamics included a 19.2% surge in interest payments and adjustments in the capital account, with gross capital formation falling by €8.9 million (3.5%). Despite these contrasts, other segments saw an increase in capital expenditures by €6.1 million (8.8%), and subsidies dropped by €5.6 million (19.2%). Notably, for several general government entities, particularly within the local government sector, the Statistical Service had to estimate figures due to insufficient data submissions by the competent authorities.

Cyprus Has One Of The EU’s Oldest Teaching Workforces

by News Editor

Only 3% of teachers in Cyprus are under 30, putting the country alongside Portugal for the lowest share of young teachers in the European Union, according to a European Commission report. The figure is well below the EU average of 8%, while Malta has the highest proportion at 17%, followed by Belgium and Luxembourg at around 15%.

Cyprus is also the only EU member state identified in the report as having a surplus of teachers, despite the workforce being relatively old.

Older Teachers Remain Highly Satisfied

The teaching profession appears to remain attractive to those already working in it. In 2024, 73% of Cypriot teachers said they were satisfied with their salaries, compared with just 37.3% across the EU. Job satisfaction was also high, reaching 93% in Cyprus versus 90% across the bloc.

The age gap is particularly visible in secondary education, where teachers in Cyprus averaged 46 years old in 2024, compared with 45 across OECD member states. Only 4% were under 30, while 33% were aged 50 or older.

Reform Could Change The System

The findings come as Cyprus moves toward the final stage of its teacher evaluation reform. Until August next year, vacancies will continue to be divided between the old appointment list and the newer system introduced in 2015.

From next September, first-appointment vacancies will be filled exclusively through the new list. The European Commission has meanwhile called for stronger efforts to attract and retain younger teachers, including through better working conditions and greater support for people entering the profession.

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