Cyprus bucks EU trend by recording consistent government surplus

Cyprus recorded a provisional general government surplus of 2.4 per cent of its GDP in the third quarter of 2025, according to seasonally adjusted data released by Eurostat this week.

This performance stands in sharp contrast to the broader euro area, where the deficit-to-GDP ratio increased to 3.2 per cent during the same period.

The figure for Cyprus represents a slight decrease of 0.2 percentage points compared to the second quarter of 2025, when the surplus stood at 2.5 per cent.

Historically, the island has maintained a strong fiscal position, having recorded a surplus of 5 per cent in the first quarter of 2025 and 4.9 per cent on September 30, 2024.

Across the euro area, the deficit-to-GDP ratio rose from 2.8 per cent in the second quarter to 3.2 per cent in the third quarter.

The European Union as a whole saw a similar trend, with the deficit climbing from 2.9 per cent to 3.2 per cent.

In the third quarter of 2025, total government revenue in the euro area amounted to 46.7 per cent of GDP, a slight decrease from 46.8 per cent in the previous quarter.

While government total revenue increased in absolute terms by approximately €13 billion, this growth was outweighed by a larger increase in GDP.

Meanwhile, government total expenditure in the euro area rose to 49.9 per cent of GDP, compared with 49.5 per cent in the second quarter.

This increase was driven by a rise in seasonally adjusted total spending of around €32 billion across the member nations.

In the wider EU, total revenue stood at 46.3 per cent of GDP, a ratio that remained unchanged from the second quarter of 2025.

Total revenue in the EU increased by roughly €25 billion in absolute terms compared with the preceding three-month period.

Total expenditure in the EU reached 49.5 per cent of GDP, marking an increase from the 49.2 per cent recorded in the second quarter.

This reflected an increase in seasonally adjusted total expenditure of approximately €39 billion across the union.

The surplus in Cyprus has seen fluctuations throughout the year, with a notable decrease of 2.5 percentage points recorded between the first and second quarters of 2025.

However, the country’s ability to remain in a surplus position continues to distinguish its economy from the majority of its European counterparts.

The data is part of the government finance statistics used to monitor the fiscal health and economic stability of the euro area and the EU.

These provisional figures for Cyprus suggest a continued commitment to fiscal discipline despite the rising expenditure trends seen elsewhere in the region.