Cyprus government debt-to-GDP ratio declines as EU levels rise

According to Eurostat, Cyprus’ gross government debt fell to 54.6% of GDP by the end of the first quarter of 2026. This represents a decline from 55.0% in the fourth quarter of 2025 and 61.9% in the first quarter of 2025. In absolute terms, the debt reached €20.089 billion at the end of March 2026. The 7.4 percentage point annual reduction marks the second-largest decline in the EU, surpassed only by Greece’s 9.4 percentage point decrease. Conversely, the euro area saw its debt-to-GDP ratio rise to 88.9% from 87.7% in the previous quarter, while the EU ratio increased to 82.9% from 81.8%. Debt securities constitute the primary component of public debt in the EU, accounting for 83.6% of the total. In Cyprus, the debt breakdown includes 31.6% in debt securities, 22.5% in loans, 0.5% in currency and deposits, and 0.8% in intergovernmental lending.