Cyprus recorded a general government budget surplus of €557.6 million (1.6 per cent of GDP) in the period from January to June 2025, according to preliminary figures released by the state statistical service on Monday.
This marked a slight increase from the €550.7m (also 1.6 per cent of GDP) surplus recorded during the same period in 2024.
Total revenue in the first half of 2025 rose by €393.6m, equivalent to a 5.9 per cent year-on-year increase, reaching €7.1 billion, up from €6.7 billion in the first six months of 2024.
Revenue from taxes on income and wealth grew by €171.3m, amounting to a 12.0 per cent rise, to reach €1.6 bn, compared to €1.4 bn in the same period of the previous year.
Social contributions increased by €208.3m, equivalent to a 9.7 per cent rise, totalling €2.4 bn, up from €2.1 bn in 2024.
At the core of this evolution is a growing recognition among policymakers, business lead ers and technologists that the digital economy is no longer optional, it is foundational.
According to Georgios Komodromos, an official at the deputy ministry of research, innovation and digital policy, digital transformation is crucial in improving the country’s competitiveness and economic growth.
“The vision of establishing Cyprus as a regional hub for innovation and technology is closely linked to the country’s digital transformation and the creation of a comprehensive digital ecosystem,” Komodromos stated.
He explained that Cyprus is in its strongest position yet to pursue this vision, citing the country’s strategic geographical location and stability as key advantages.
“Cyprus is a conduit between developing regions in the field of technology,” he said.
In a statement released on Monday, Kineyirou said that demand remains high from both local buyers and foreigners, particularly from third countries such as Israel and Lebanon.
Geopolitical tensions, he noted, do not appear to have dampened their appetite for investment, which in many cases concerns large-scale transactions.
Kyneyirou explained that the most encouraging element of the current environment is the supply of available properties, as the market offers a wide range of options that can meet the needs of buyers.
He added that if no serious external disruptions occur in the coming months, everything indicates that buying interest will be maintained throughout 2025, with prices remaining stable at current levels.
Cyprus surpassed its pre-pandemic tourism figures in 2024, as international arrivals and revenues rose sharply, aligning with a global rebound that brought worldwide travel nearly back to 2019 levels, according to data from the UN World Tourism Organisation (UNWTO) and Eurostat.
The island welcomed over 4.04 million international visitors in 2024, overtaking its previous record of 3.977 million set in 2019. Tourism revenue climbed to €3.2 billion, up 7.3 per cent year on year.
The upward trend continued into 2025, with April arrivals rising 25.5 per cent and May up 13.7 per cent compared to the same months in 2024. From January to May, the number of visitors reached 1.34m, a 14.9 per cent increase on an annual basis.
The UK remained the largest source market for Cyprus, accounting for more than a third of all visitors in the first half of the year.
Israel, Germany, Poland, Sweden and Greece followed. Spending mirrored this demand, with May 2025 revenue reaching €373.3m, up 20.2 per cent year on year, and total receipts for the first five months of the year rising to €955.8m, a 27.2 per cent annual increase.
In an interview with Politis, Patsalides stressed that Cyprus needs to fortify its economic resilience by building fiscal buffers, maintaining surpluses, and investing in strategic sectors that can shield the economy from future shocks.
“The era we are living in is full of uncertainties; geopolitical, technological, environmental,” he said.
“We must be ready for every scenario, build reserves, safeguard our surpluses and invest in sectors that will strengthen the resilience of the Cypriot economy,” he added.
Cyprus recorded the lowest annual inflation rate among eurozone countries in July 2025, with consumer prices rising by just 0.1 per cent year-on-year, according to preliminary data released by Eurostat.
This represents a further slowdown compared with the 0.5 per cent recorded in June.
Monthly inflation in Cyprus stood at 0.4 per cent, based on the provisional figures.
Across the eurozone, annual inflation remained steady at 2.0 per cent, unchanged from June.
Among member states, the highest inflation rates for July were recorded in Estonia at 5.6 per cent, Croatia at 4.5 per cent and Slovakia at 4.5 per cent, while the lowest were observed in Cyprus at 0.1 per cent, France at 0.9 per cent and Ireland at 1.6 per cent.
The imposition of tariffs by the United States strengthens deglobalisation and may lead to short-term increases in the prices of certain goods while uncertainty remains, according to economist Tassos Yiasemides.
Speaking to the Cyprus News Agency (CNA), Yiasemides also said that he considers the European Union–United States agreement to be unbalanced for the EU.
At the same time, he said that the new tariffs announced by Donald Trump are causing problems in the supply chain.
He added that the fact that the euro has strengthened against the dollar is also weighing on the EU, making European products more expensive, with tariffs combined with a 10 to 15 per cent increase due to the exchange rate.
In a filing to the Cyprus Stock Exchange (CSE), the company confirmed the process in a market notification published on August 4, 2025, through the Regulated Market, where its shares are traded.
The payment was carried out in line with the provisions of the regulatory decision on the operation of the central depository and central registry of securities, which came into effect on November 13, 2023.
For investors whose shares are held under the control of a custodian, the dividend amount was paid directly to the custodian, who is then responsible for disbursing the funds to their respective clients.
The transaction was carried out by its wholly owned subsidiary, Ergomakers Ltd, and the total consideration amounts to €102.78 million, excluding value-added tax.
The announcement was made through the regulated market of the Cyprus Stock Exchange (CSE).
In an official statement to the exchange, the company confirmed that the sale represents a material change in its financial state and capital structure.
“The Oceanus office tower has been sold as part of the ongoing Limassol Blu Marine development,” said company secretary Stavros Leptos.
According to Greek news outlet Newmoney, this development follows an announcement made on March 31, 2025, regarding the preliminary agreement on the key commercial and legal terms of the transaction.
The signing of the final agreement marks a significant milestone in Alpha Bank’s strategy to create the leading investment banking and capital markets platform in Greece and Cyprus.
Upon completion of the transaction, AXIA will be integrated with Alpha Finance and Alpha Bank’s investment banking unit to form what the bank refers to as “the most comprehensive and dynamic investment platform in Greece and Cyprus“.
The 82,000 DWT vessel, registered in Limassol, is powered by a MAN B&W 5S60ME-C10.5-EGRBP main engine and classed by a member of the International Association of Classification Societies (IACS), with final designation to be confirmed.
Alassia said the delivery represents a milestone for the company and aligns with its long-term strategy to expand its managed fleet with modern, environmentally compliant tonnage.
“It is another step towards the development of our fleet and towards a greener and more efficient shipping future,” the company stated, while thanking all team members and partners involved in the shipbuilding and delivery process.
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