Cyprus’ general government net financial worth narrowed to –€7.7 billion at the end of the first quarter of 2025, reflecting an improved fiscal position, according to Eurostat data released on Monday. 

The indicator, which measures the difference between the stock of financial assets and liabilities, improved from –€8.4 billion in the fourth quarter of 2024 and –€9 billion in Q4 a year earlier. 

Across the European Union, the general government net financial worth stood at –€8,948 billion, –49.4 per cent of gross domestic product (GDP).

This marked an increase of €72 billion from the previous quarter but a decline of €213 billion compared with the first quarter of 2024.

Eurostat said the net financial worth can change due to transactions or other economic flows, including price changes, also known as holding gains or losses.  

Debt securities remain the main liabilities on EU governments’ balance sheets, with their value fluctuating as they are traded on financial markets. 

The continued EU general government deficit, measured as transactions in financial assets minus liabilities (–€166 billion), weighed on net financial worth in the first quarter.  

However, this was offset by positive revaluation of financial assets (+€137 billion), notably equity, and negative revaluations of liabilities (–€101 billion), particularly debt securities.