Cyprus Reports Strong Surplus for First Three Quarters of 2023

The Cypriot government has revealed a robust surplus of €931.6 million for the period spanning January to September 2023, according to preliminary estimates from the country's statistical service. This surplus amounts to 3.1% of Cyprus's GDP, marking a significant increase from the €727.1 million surplus (2.6% of GDP) recorded during the same period in 2022.

The report by the statistical service covers major revenue and expenditure categories, distinguishing between current and capital transactions, and aggregates data from various government entities, including the central government, off-budget funds, social insurance organizations, municipal budgets, and semi-governmental organizations.

Cyprus witnessed substantial growth in its total revenue during the first three quarters of 2023, with an 11% increase, reaching €9.05 billion compared to €8.15 billion during the corresponding period in 2022.

Tax revenue from production and imports increased by €286.1 million, marking a 9.6% rise and totaling €3.262.1 billion. Net VAT revenues, after accounting for refunds, surged by €174.7 million, an 8.8% increase, reaching €2.16 billion. Income and wealth taxes experienced significant growth of €290.5 million, reflecting a 14.5% increase, with total revenue at €2.29 billion.

Social contributions also saw a substantial rise of €344.8 million, indicating a 15.4% increase and reaching a total of €2.58 billion. Current transfers increased by €53.7 million, a substantial 35.5% rise, and service revenue increased by €14.2 million. Conversely, interest and dividend income decreased by €22.2 million.

On the expenditure side, total expenses rose by €694.6 million, representing a 9.4% increase, and reached €8.11 billion. Social benefits increased by €258.9 million, salaries and wages by €263.2 million, and subsidies by €63.3 million. Current transfers surged by €85.8 million. Intermediate consumption witnessed a decrease of €26.1 million, and paid interest saw a decrease of €15.6 million.

This strong financial performance is seen as a positive sign for Cyprus, reflecting its ability to manage its finances effectively, despite economic challenges. The surplus for the first three quarters of 2023 signifies a resilient fiscal position and an improvement over the previous year.

By fLEXI tEAM