CYPRUS
Macro/Political:
- Yesterday, the Council of Ministers approved the 2027 State Budget and the Medium-Term Fiscal Framework. The 2027 Budget amounts to EUR 11,160.5mn, excluding debt servicing costs, with development expenditure projected to reach EUR 1,165.2mn, while capital expenditure is also expected to rise by 2.1% compared with 2026. Furthermore, GDP is expected to grow by 2.9%, while employment is expected to stand at 4.5%. The fiscal balance is expected to record a surplus of 2.8% of GDP, compared with 2.3% in 2026, while the primary balance is expected to reach 4.0%, against 3.6% in 2026. Finally, the public debt ratio is projected to fall to 46.6% of GDP in 2027, from 49.9% in 2026.
Source: Gov.cy
- In May 2026, the number of building permits authorized by the municipal authorities in Cyprus stood at 735.During the period January-May 2026, 3650 building permits were issued compared to 2,764 in the corresponding period of the previous year, recording an increase of 32.1%.
Source: CyStat
- President Christodoulides will meet Turkish Cypriot leader Tufan Erhurman today, for the last time before the UN General Assembly in New York. The meeting will take place at the UN offices in the Nicosia Airport area.
Source: CNA
