Cyprus’ economy grew by 25.8 per cent in real terms between 2019 and 2024, recording one of the strongest expansions in the European Union since before the Covid-19 pandemic, according to Eurostat figures comparing economic performance across the bloc’s regions.

The increase placed Cyprus well above the EU-wide growth rate of 5.6 per cent over the same period, highlighting the island’s economic expansion between the final pre-pandemic year and 2024.

The figures come alongside more recent data showing that Cyprus recorded the EU’s highest government surplus in 2025 and the largest quarterly decline in public debt relative to gross domestic product (GDP) in the second quarter of 2026, underlining the country’s recent economic and fiscal performance.

Eurostat’s regional comparison covered 244 regions across the EU for which data were available, with 197 recording higher levels of economic activity in 2024 than in 2019.

GDP fell in 46 regions, while the Spanish region of Ciudad de Ceuta recorded no change, the European statistical office reported.

Cyprus’ 25.8 per cent expansion was among the strongest increases recorded across the bloc, although it remained below the exceptional growth rates registered in Ireland and several other regions.

Ireland’s Eastern and Midland region recorded the EU’s largest increase, with real GDP rising by 38 per cent between 2019 and 2024.

The region also had the highest GDP per inhabitant in the EU in 2024, the latest figures showed.

Ireland’s Northern and Western region followed with growth of 36.4 per cent, the second-highest rate across the bloc, while its Southern region recorded an increase of 26 per cent, the sixth-highest.

Outside Ireland, the strongest increases were recorded in Romania’s Bucureşti-Ilfov region, where GDP grew by 33 per cent, Malta, at 32.9 per cent, and the French outermost region of Mayotte, at 32.1 per cent.

Almost all EU capital regions recorded economic growth over the five-year period, with Helsinki-Uusimaa in Finland the sole exception, registering a real GDP decline of 1.9 per cent.

At the other end of the scale, Bulgaria’s Yugoiztochen region recorded the largest contraction, with economic output falling by 20.5 per cent.

Greece’s Dytiki Makedonia region experienced a decline of 18 per cent, while the Dutch region of Groningen contracted by 14 per cent.

Romania’s Sud-Muntenia and Sud-Vest Oltenia regions recorded decreases of 13.5 per cent and 11.3 per cent respectively.

It should be noted, however, that unlike larger EU countries, which are divided into several statistical regions for this comparison, Cyprus is treated as a single region because of its size, meaning the 25.8 per cent growth figure reflects the performance of the entire national economy rather than differences between individual areas.

Stronger public finances

The regional growth figures provide a longer-term perspective on Cyprus’ economic performance, while the latest public finance statistics offer a more recent picture of the country’s fiscal position.

Cyprus recorded a government surplus of 3.6 per cent of GDP in 2025, the highest in the EU, according to figures published by the Cyprus Statistical Service (Cystat) and Eurostat on Wednesday.

The surplus amounted to €1.36 billion, with public revenue reaching almost €15.9 billion, based on audited and verified figures compiled under the European Commission’s Excessive Deficit Procedure.

Moreover, government debt stood at €20.05bn, equivalent to 52.3 per cent of GDP.

Cyprus was one of only five EU member states to record a government surplus last year, alongside Denmark at 2.9 per cent of GDP, Greece at 2 per cent, Ireland at 1.8 per cent and Portugal at 0.7 per cent.

The country also recorded the bloc’s largest quarterly reduction in government debt relative to GDP in the second quarter of 2026.

The debt-to-GDP ratio fell to 48.5 per cent at the end of June, down from 51.5 per cent in the first quarter and 58.1 per cent in the second quarter of 2025.

General government gross debt declined to €19.2bn at the end of June, compared with €20.03bn at the end of March and €21.7bn a year earlier.

Cyprus recorded the largest quarterly decline in government debt relative to GDP in the European Union in the second quarter of 2026, with the ratio falling to 48.5 per cent, according to Eurostat figures published on Wednesday.

The ratio dropped by 3 percentage points from 51.5 per cent in the first quarter and was 9.5 percentage points lower than the 58.1 per cent recorded in the second quarter of 2025.

Cyprus’ general government gross debt stood at €19.2 billion at the end of June 2026, down from €20.03 billion at the end of March and €21.7 billion a year earlier.

The figures underline the continued reduction in the country’s debt burden relative to the size of its economy, with Cyprus recording the second-largest annual decline in the EU after Greece.

Greece’s debt-to-GDP ratio fell by 11.2 percentage points year-on-year, while Cyprus recorded a decline of 9.5 percentage points.

Slovenia and Portugal followed, with decreases of 4.5 and 3.4 percentage points respectively.

Compared with the first quarter of 2026, Cyprus recorded the largest reduction among member states, ahead of Greece, where the ratio fell by 2.7 percentage points.

Hungary recorded a decrease of 2 percentage points, Ireland 1.8 percentage points, Croatia 1.6 percentage points and Slovakia 1 percentage point.

Across the EU, government debt continued to rise in the second quarter, reaching 82.9 per cent of GDP, up from 82.5 per cent in the first quarter.

The euro area’s debt-to-GDP ratio increased to 88.8 per cent from 88.4 per cent over the same period.

Compared with the second quarter of 2025, the EU ratio rose from 81.4 per cent, while the euro area figure increased from 87.3 per cent.

At the end of June, Greece had the EU’s highest government debt ratio, at 140.8 per cent of GDP, followed by Italy at 139.9 per cent, France at 119.1 per cent, Belgium at 110.2 per cent and Spain at 101.4 per cent.

The lowest ratios were recorded in Estonia at 26.1 per cent, Denmark at 27.1 per cent, Luxembourg at 28.2 per cent and Bulgaria at 28.7 per cent.

Compared with the first quarter, government debt ratios increased in 15 member states and decreased in 10, while the figures for the Netherlands and Spain remained unchanged.

The largest quarterly increases were recorded in Poland, where the ratio rose by 3 percentage points, Portugal at 2.1 percentage points, Latvia at 1.9 percentage points, Lithuania at 1.6 percentage points and France at 1.4 percentage points.

Italy and Malta each recorded increases of 1.3 percentage points, while Estonia’s ratio rose by 1.1 percentage points.

On an annual basis, 18 member states recorded higher debt ratios and nine registered declines.

Poland had the largest increase, at 6.7 percentage points, followed by Lithuania at 4.9 percentage points, Belgium at 3.8 percentage points, France at 3.7 percentage points, Luxembourg at 3.6 percentage points and Estonia at 3 percentage points.

Eurostat’s data also showed that Cyprus’ government debt at the end of 2025 amounted to €20.05bn, equivalent to 52.3 per cent of GDP, according to the audited annual figures published by the Cyprus Statistical Service.

The annual figures placed Cyprus among the five EU member states to record a government surplus in 2025, with the country’s surplus reaching 3.6 per cent of GDP.

Looking at government debt across the bloc at the end of 2025, the lowest ratios were recorded in Estonia at 24 per cent of GDP, Luxembourg at 26 per cent, Denmark at 27.2 per cent, Bulgaria at 29.9 per cent, Ireland at 34.8 per cent, Sweden at 35.1 per cent and Lithuania at 39.3 per cent.

Twelve member states had debt ratios above the EU’s 60 per cent reference level, with the highest figures recorded in Greece at 145.4 per cent, Italy at 136.7 per cent, France at 115.7 per cent, Belgium at 108.1 per cent and Spain at 100.5 per cent.

At the end of the second quarter of 2026, debt securities accounted for 84.5 per cent of general government debt in the euro area and 83.9 per cent in the EU.

Loans represented 13.1 per cent of euro area debt and 13.8 per cent of EU debt, while currency and deposits accounted for 2.4 per cent in both.

Eurostat also reported intergovernmental lending, reflecting EU member states’ governments lending to other member states, at 1.3 per cent of GDP in the euro area and 1.1 per cent in the EU at the end of June.

Separately, seasonally adjusted government revenue in the euro area stood at 46.8 per cent of GDP in the second quarter of 2026, down from 46.9 per cent in the first quarter.

Although revenue increased by around €21bn in absolute terms, the rise was outweighed by growth in nominal GDP.

Government expenditure in the euro area increased to 50.1 per cent of GDP from 50 per cent, as seasonally adjusted spending rose by around €28bn.

In the EU, government revenue fell to 46.3 per cent of GDP from 46.4 per cent in the first quarter, as an increase of around €25bn in seasonally adjusted revenue was outweighed by nominal GDP growth.

EU government expenditure rose to 49.8 per cent of GDP from 49.6 per cent, with seasonally adjusted spending increasing by around €42bn.

Cyprus’ seasonally adjusted government surplus stood at 3.3 per cent of GDP in the second quarter of 2026, down from 3.8 per cent in the first quarter.

The surplus had fluctuated during 2025, standing at 3.6 per cent of GDP in the first quarter, 3.3 per cent in the second, 2.9 per cent in the third and 4.3 per cent in the fourth.

The latest quarterly decline followed a 0.5 percentage point decrease in the first quarter of 2026, meaning the surplus-to-GDP ratio fell by a further 0.5 percentage points in the second quarter.

Earlier, Cyprus recorded seasonally adjusted government surpluses of 4.5 per cent of GDP in the second quarter of 2024, 4.3 per cent in the third quarter and 2.9 per cent in the fourth quarter.

The figures were included in Eurostat’s latest government deficit and debt data, based on member states’ second 2026 notifications under the European Union’s Excessive Deficit Procedure and compiled using the European System of Accounts 2010 methodology.

Cyprus recorded the European Union’s highest government surplus in 2025, at 3.6 per cent of gross domestic product (GDP), as public revenue rose to almost €15.9 billion, according to figures published by the Cyprus Statistical Service (Cystat) and Eurostat on Wednesday.

The surplus amounted to €1.36bn, based on audited and verified figures compiled under the European Commission’s Excessive Deficit Procedure, while government debt stood at €20.05bn, equivalent to 52.3 per cent of GDP.

Eurostat’s figures showed that Cyprus was one of only five EU member states to record a government surplus last year, alongside Denmark, at 2.9 per cent of GDP, Greece at 2 per cent, Ireland at 1.8 per cent and Portugal at 0.7 per cent.

All other member states reported deficits, with the largest recorded in Romania at 7.8 per cent of GDP, Poland at 7.2 per cent, Belgium at 5.2 per cent and France at 5.1 per cent.

Eleven member states recorded deficits equal to or greater than 3 per cent of GDP.

Cyprus’ total government revenue rose by 7.7 per cent in 2025, increasing by €1.14bn to €15.9bn from €14.76bn in 2024, Cystat reported.

The increase reflected higher receipts from several major revenue sources, particularly social contributions and taxes on income and wealth.

Revenue from social contributions rose by €379.8 million, or 8.4 per cent, to €4.9bn, compared with €4.52bn in 2024.

Taxes on income and wealth increased by €379.1m, or 10 per cent, to €4.18bn from €3.8bn.

Taxes on production and imports rose by €67.4m, or 1.4 per cent, to €4.75bn, compared with €4.68bn a year earlier.

However, net value added tax revenue fell by €16m, or 0.5 per cent, to €3.15bn from €3.17bn in 2024.

Other current transfers increased by €84.6m, or 21.4 per cent, to €480.1m from €395.5m.

Revenue from the sale of goods and services rose by €161.7m, or 18.1 per cent, to €1.06bn, compared with €894.4m in 2024.

Capital transfers increased by €25.7m, or 7.6 per cent, to €362.6m, while property income received rose by €41.5m, or 34.3 per cent, to €162.6m.

Government expenditure also increased, rising by 9.2 per cent, or €1.22bn, to €14.54bn in 2025 from €13.31bn in 2024.

Compensation of employees, including imputed social contributions and civil servants’ pensions, increased by €295.3m, or 7.6 per cent, to €4.17bn from €3.88bn.

Social transfers rose by €283m, or 5.3 per cent, to €5.59bn, compared with €5.3bn in 2024.

Intermediate consumption, covering goods and services used by government in its operations, increased by €98.5m, or 6.6 per cent, to €1.59bn.

Other current expenditure rose by €22.9m, or 2.7 per cent, to €865.8m.

The most pronounced increase was in capital expenditure, which jumped by 46.4 per cent to €1.76bn from €1.2bn in 2024, an increase of €558.3m.

This comprised gross capital formation of €1.21bn, compared with €963.6m a year earlier, and other capital expenditure of €546.3m, up from €239.3m.

In contrast, property income payable fell by €1.6m, or 0.4 per cent, to €422.6m from €424.2m.

Subsidies decreased by €31.8m, or 18.6 per cent, to €139.6m from €171.4m.

Across the EU, government expenditure in 2025 amounted to 49.4 per cent of GDP, while revenue stood at 46.3 per cent.

In the euro area, expenditure reached 49.8 per cent of GDP and revenue 46.8 per cent.

Fuel prices in Cyprus rose by 24.6 per cent year-on-year in September, accelerating from 19.1 per cent in August, according to Eurostat figures published on Wednesday, as Finance Minister Makis Keravnos warned that the government was focused on containing costs rather than achieving major price reductions.

The increase in the prices of fuels and lubricants for personal transport in Cyprus was below the European Union average of 31.4 per cent, but still reflected the continuing pressure on motorists as energy costs climbed across the bloc.

On a monthly basis, petrol prices in Cyprus rose by 3.8 per cent between August and September, the smallest increase recorded among EU member states.

The rise compared with an EU-wide increase of 6.7 per cent over the same period, while diesel prices across the bloc increased by 5.9 per cent.

The latest figures come as the government faces questions over whether its cost-of-living measures are sufficient to offset rising energy prices.

“Containing fuel prices rather than achieving major decreases is the government’s current policy,” Keravnos said on Tuesday.

Speaking on the sidelines of an event marking European Statistics Day, the finance minister said the authorities were monitoring the impact of recently announced support measures.

An initial assessment by the Consumer Protection Service had found that prices of some essential goods had fallen by 5 per cent, he said.

However, when asked whether rising energy prices had already offset the relief provided by those measures, Keravnos cautioned against expecting substantial reductions.

“Under the circumstances, one should not expect significant decreases,” he said.

Fuel prices rise across Europe

Eurostat reported that EU prices for fuels and lubricants used in personal transport increased by 31.4 per cent in September compared with the same month in 2025.

This followed annual increases of 16.9 per cent in July and 23.8 per cent in August, marking a further acceleration in fuel-related inflation.

Annual increases in September were higher than those recorded in both July and August in 26 of the bloc’s 27 member states.

Bulgaria recorded the largest annual increase, at 42.2 per cent, followed by Estonia at 40.6 per cent and Lithuania at 40.2 per cent.

A further 12 countries registered increases exceeding 30 per cent, with rises ranging from 37.5 per cent in the Czech Republic to 30.3 per cent in Portugal.

Hungary recorded the smallest annual increase, at 6.9 per cent, followed by Ireland at 17.7 per cent and Sweden at 19.9 per cent.

Diesel and petrol costs climb

On a monthly basis, diesel prices across the EU increased by 5.9 per cent in September, slowing from the 8.3 per cent rise recorded in August.

Petrol prices, meanwhile, accelerated, rising by 6.7 per cent in September compared with a 3.3 per cent increase in August.

Diesel prices increased in 26 EU countries between August and September, with the largest rises recorded in Sweden at 12.8 per cent, Latvia at 10.3 per cent and Poland at 9.7 per cent.

The smallest increases were recorded in Spain at 2.4 per cent, Croatia at 2.5 per cent and Romania at 3 per cent.

Petrol prices also rose in 26 member states over the month.

Sweden recorded the largest increase, at 13.8 per cent, followed by Poland at 9.7 per cent and Estonia at 9.5 per cent.

Cyprus registered the smallest monthly increase in petrol prices, at 3.8 per cent, followed by Romania at 4.2 per cent and Slovenia at 4.6 per cent.

The figures underline the continuing pressure on household transport costs, even as the pace of monthly increases differs considerably between member states.

For Cyprus, the latest data provide a mixed picture, with annual fuel-related inflation remaining substantial but the monthly rise in petrol prices among the lowest in the EU.