Cyprus records fiscal surplus of €1.61 billion in first nine months of 2026

Cyprus recorded a general government surplus of €1.61 billion during the first nine months of 2026, according to preliminary data from the Statistical Service (Cystat). This figure represents 4 per cent of GDP, marking a significant increase from the €1.17 billion, or 3 per cent of GDP, reported for the same period in 2025.

The positive fiscal performance was driven by a 6.5 per cent rise in total government revenue, which reached €12.09 billion. Taxes on income and wealth saw the most substantial growth, increasing by 15.3 per cent to €3.34 billion, while social contributions rose by 6.6 per cent to €3.78 billion. Net VAT revenue also grew by 12.5 per cent, or €293.1 million, fueled by rising consumer prices.

While revenue grew significantly, total expenditure increased by only 2.9 per cent to €10.48 billion. Notably, capital spending fell by 16.9 per cent, or €189.9 million, with net investment in infrastructure dropping by 12.1 per cent. Analysts suggest that the state is prioritizing social benefits and operational costs over long-term capital investment. The current data reflects a robust labor market and higher tax collection efficiency, though the reduction in capital expenditure remains a point of fiscal focus as the government manages its budgetary strategy moving into the final quarter of 2026.