Government Surplus in Cyprus: April 2025 Analysis

by News Editor

May 30, 2025

Surplus Insights: January-April 2025

The General Government of Cyprus recorded a fiscal surplus of €646.8 million in the first four months of 2025, equating to 1.8% of GDP. This is a slight decrease compared to the €650.5 million surplus (1.9% of GDP) seen in the same timeframe in 2024, according to preliminary results from the Statistical Service.

Revenue Breakdown

Government revenues grew by €243 million (5.3%), reaching €4.826 billion in comparison to the previous year. Income and wealth tax revenues rose by €89.8 million (8.3%), totaling €1.171 billion. Meanwhile, social contributions increased by €135.7 million (9.4%), totaling €1.573 billion. Interest and dividend collections climbed to €84.7 million, marking an increase of €53.7 million.

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Service provisions saw an impressive growth, up by 24.1% to €369.7 million. Conversely, taxes on production and imports decreased slightly by €10.8 million, settling at €1.499 billion, with net VAT revenues falling by €23.6 million.

Expenditure Insights

Expenditures also saw a rise, up €246.6 million (6.3%) to a total of €4.179 billion. Personnel expenses, including social benefits, increased by €72 million (6%) to €1.272 billion. Social benefits expanded by €95.8 million (5.9%).

Capital accounts surged by 30% to €310.7 million. Within this, fixed capital investments grew by 18.7% to €251.7 million. On a lighter note, interest payments fell by €2.8 million, with subsidies also showing a decline.

For additional context on Cyprus’ economic landscape, refer to our coverage on how Cyprus Labor Market Strengthens in Q1 2025.

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Bank Of England Holds Rates At 3.75% In Split Vote As Inflation Risks Rise

by THEFUTURE.TEAM

September 17, 2026

The Bank of England kept its benchmark interest rate at 3.75% on Thursday, but the decision was not unanimous. In a 6-3 vote, the Monetary Policy Committee kept rates unchanged, while three members backed a 25-basis-point increase to 4%. Renewed energy price pressures have added to concerns that inflation could remain elevated.

Inflation Pressures Remain

Policymakers said inflation “is likely to rise further over coming quarters,” citing higher and more volatile crude oil and refined energy prices since the conflict began.

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So far, there has been “little evidence” of significant second-round effects, such as broader wage and price increases. Inflation risks, however, are now “tilted to the upside” and have increased since the July Monetary Policy Report.

Energy Prices Add To Inflation Risks

Brent crude has risen 36% since July, reaching $106 a barrel on Sept. 14, while UK wholesale gas prices increased 78% to 207 pence per therm.

Higher energy costs can feed into transport, production and household expenses, raising costs across supply chains. Refinery pressures have also pushed crack spreads, the difference between refined fuel and crude prices, well above pre-conflict levels.

Economy Shows Resilience

Despite the inflation risks, UK economic activity has held up slightly better than the Bank expected. A softer labor market and higher borrowing costs are expected to help reduce inflation over time.

Previous monetary tightening is still working through the economy, according to policymakers. So far, the latest energy shock has not produced clear evidence of a broader wage-price spiral.

Major Central Banks Take Different Paths

The decision comes during a busy period for global monetary policy. The Federal Reserve raised rates Wednesday to 3.75%-4% in its first increase since 2023, while the European Central Bank recently lifted its deposit rate to 2.5%.

The Bank of Japan is due to announce its decision Friday, with markets expecting a rate increase. Thursday’s split vote shows that pressure for tighter policy remains within the Bank of England’s Monetary Policy Committee.

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