Cyprus fiscal surplus reaches 1.1 per cent of GDP

Cyprus recorded a general government fiscal surplus of €420.30 million in the first six months of 2026, equivalent to 1.1 per cent of GDP, according to preliminary figures released on Friday by the Cyprus Statistical Service (Cystat).

The surplus was slightly higher than the €416.80m, or 1.1 per cent of GDP, recorded during the corresponding period of 2025.

Total government revenue rose by 4.1 per cent to €7.40 billion between January and June 2026, compared with €7.11 billion in the same period a year earlier.

The statistical service said the increase reflected an additional €290.30m in revenue over the first half of 2025.

Revenue from taxes on income and wealth increased by €101.00m, or 6.3 per cent, reaching €1.69bn compared with €1.59bn a year earlier.

Social contributions climbed by €181.30m, or 7.7 per cent, to €2.54bn, up from €2.36bn in the first half of 2025.

Revenue from taxes on production and imports increased by €207.90m, or 9.3 per cent, to €2.45bn, compared with €2.25bn in the same period last year.

Within that category, net VAT revenue recorded the largest increase, rising by €263.80m, or 18.0 per cent, to €1.73bn from €1.46bn.

At the same time, capital transfers fell sharply by €84.60m to €23.00m, down from €107.60m in the first half of 2025.

Revenue from the sale of goods and services declined by €23.40m, or 4.6 per cent, to €481.80m.

Property income dropped by €29.30m, or 28.5 per cent, to €73.60m, compared with €102.90m a year earlier.

Current transfers also declined, falling by €62.60m, or 31.4 per cent, to €136.90m.

Meanwhile, total government expenditure increased by 4.3 per cent to €6.98bn during the first half of 2026, compared with €6.69bn in the corresponding period of 2025.

According to Cystat, expenditure rose by €286.80m over the period.

Intermediate consumption increased by €88.00m, or 13.4 per cent, reaching €745.40m.

Compensation of employees, including imputed social contributions and civil servants’ pensions, rose by €64.90m, or 3.4 per cent, to €1.98bn.

Social benefits increased by €151.70m, or 5.5 per cent, reaching €2.89bn, compared with €2.74bn in the same period of 2025.

Interest payments rose by €12.40m, or 4.9 per cent, to €263.40m.

Current transfers on the expenditure side increased by €39.90m, or 9.1 per cent, reaching €478.40m.

The capital account declined by €57.10m, or 9.0 per cent, to €580.80m, down from €637.90m in the first half of 2025.

Within the capital account, gross capital formation increased by €8.90m, or 2.1 per cent, to €434.00m.

At the same time, other capital expenditure fell by €66.00m, or 31.0 per cent, to €146.80m.

Subsidies also declined, decreasing by €13.00m, or 24.8 per cent, to €39.40m during the January to June 2026 period.