Cyprus recorded the highest budget surplus in the European Union in 2025, at 3.6% of GDP, and continued to reduce its public debt rapidly in 2026, according to Eurostat figures published on 21 October.
The country’s surplus reached €1.36 billion, placing it first among the five EU member states that ended 2025 with a positive fiscal balance. Denmark followed (+2.9%), ahead of Greece (+2%), Ireland (+1.8%) and Portugal (+0.7%). By contrast, the EU as a whole recorded a deficit of 3.1% of GDP, with the largest deficits reported in Romania (-7.8%), Poland (-7.2%) and Belgium (-5.2%).
Cyprus’s surplus was driven by an increase in government revenue to nearly €15.9 billion, primarily due to higher tax receipts and social security contributions. Almost the entire surplus came from social security funds, while the central government recorded a marginally positive balance. Public expenditure accounted for 37.9% of GDP, compared with 49.4% across the EU.
Cyprus’s surplus was driven by an increase in government revenue to nearly €15.9 billion.
Meanwhile, public debt fell to 48.5% of GDP in the second quarter of 2026, from 51.5% in the previous quarter and 58.1% a year earlier. The quarterly decline of three percentage points was the largest recorded in the EU.
These figures provide Cyprus with greater fiscal room for investment and targeted support measures amid growing pressure on European economies.
Sources: Eurostat, Phileleftheros
