Cyprus’s fiscal performance in Q1 of 2024 has been robust, with a general government surplus of €600 million, a significant 58% increase from the previous year. Revenue increased by 13.5% to €3.28 billion, driven by growth in taxes on production, imports, and social contributions, while expenditure rose by 6.7% to €2.68 billion, with a notable decrease in capital account spending.
The Cyprus government is proposing to change property valuations from every three years to every five years, potentially boosting efficiency in the real estate sector. The rebound in travel expenditures postpandemic reflects a broader economic recovery, while the country’s fiscal stability is evident through a surplus in the last quarter of 2023.
The economic outlook for Cyprus is now positive, as Capital Intelligence Ratings has upgraded the longterm foreign currency rating to BBB and highlighted the reduction in government debt, strong fiscal performance, and banking sector reforms contributing to this optimistic outlook. The nation’s proactive debt management strategy, high per capita GDP, and robust fiscal performance are key factors driving this positive assessment, signaling a promising future for Cyprus’s economic stability.
