Council of Ministers approved 2026 state budget and the Medium-Term Fiscal Framework 2026–2028
Sep. 30, 2025
CYPRUS
Macro/ Political:
- The Council of Ministers approved 2026 state budget and the Medium-Term Fiscal Framework 2026–2028. The Budget totals about EUR 10.7bn. and it focuses on economic growth, social cohesion, and investment in infrastructure while maintaining a fiscal surplus and reducing public debt. Real GDP is expected to grow by around 3.1% in 2026, with unemployment at 4.6%. Public debt is projected to fall from 52.6% of GDP in 2026 to 43.3% by 2028. Development spending will increase by 4.7%, and social benefits, including support for people with disabilities, will rise by 6.7%. The Fiscal Council warned that spending on climate action remains too low, urging greater investment. Overall, the government aims to keep finances strong, efficient, and focused on sustainable growth.
Source: MoF
- In July 2025, revenue from tourism reached EUR 513mn, recording an increase of 8.2% as compared to the corresponding month of the previous year. For the period of January-July 2025, revenue from tourism is estimated at EUR 1,891.1mn compared to EUR 1,610.4mn in the corresponding period of 2024, recording an increase of 17.4%.
Source: Cystat
- In July 2025, the Industrial Production Index reached 125,8 units recording an increase of 1,8% (y-o-y). For the period January – July 2025, the index recorded an increase of 3,0% compared to the corresponding period of the previous year.
Source: Cystat
