Cyprus general government records €1.6 billion surplus in first nine months of 2026

According to preliminary data released by the Cyprus Statistical Service, the General Government recorded a surplus of €1.61 billion (4.0% of GDP) during the first nine months of 2026. This represents a significant increase compared to the €1.17 billion (3.0% of GDP) surplus observed during the same period in 2025, marking an improvement of approximately €442 million.

Total revenue rose by 6.5% to €12.09 billion, driven primarily by strong performance in income and wealth tax collections, which grew by 15.3% to €3.34 billion. Additionally, social contributions increased by 6.6% to reach €3.78 billion, while taxes on production and imports rose by 7.2% to €3.77 billion, bolstered by a 12.5% surge in net VAT receipts. Meanwhile, government expenditures grew at a slower pace of 2.9%, totaling €10.48 billion.

The improved fiscal outcome highlights that rising tax and social security contributions have effectively offset increases in public spending. Notably, the report identifies a reduction in capital expenditure as a contributing factor to the sustained fiscal balance. The official figures confirm that state revenue growth is currently outpacing expenditure, reinforcing the positive fiscal trajectory for the remainder of the year.