Fiscal surplus shows economic resilience says Disy

The announcement of an increased fiscal surplus for the first two months of the year, amounting to €363m, is further proof that the Cypriot economy has resilience and is based on a growth dynamic, Disy said on Sunday.

The surplus is mainly the result of last year’s high growth rate and not because of rising prices, spokesman Onoufrios Koullas said.

Responding to Akel criticism, Koullas said as the largest employer in the country and therefore the largest consumer of goods and services, high prices also add to costs for the government.

The surplus is the result of increased consumption and increased investment, he said.

The government should remain focused on preparing the economy for any deterioration in economic conditions abroad, Koullas added. Besides, surpluses, apart from being a shield against global turbulence, are also necessary to reduce public debt, at a time when borrowing rates have soared.

However, he said the government must support vulnerable groups of the population and small businesses with costed, fully justified and targeted measures.