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Cyprus recorded the second-largest annual reduction in government debt among European Union member states during the first quarter of 2026, according to figures released by Eurostat on Tuesday.
The country's gross public debt stood at 54.6 per cent of GDP at the end of March, down from 55.0 per cent in the final quarter of 2025 and well below the 61.9 per cent recorded a year earlier.
The annual decline of 7.4 percentage points placed Cyprus behind only Greece, where the debt-to-GDP ratio fell by 9.4 percentage points.
In cash terms, Cyprus' public debt reached €20.089 billion in the first quarter of 2026, compared with €20.078 billion three months earlier. Despite the slight increase in the nominal debt level, stronger economic output reduced the debt ratio relative to GDP.
Eurostat's figures show that debt securities accounted for 31.6 per cent of GDP in Cyprus, while loans represented 22.5 per cent and currency and deposits 0.5 per cent. Intergovernmental lending, recorded as a financial asset, stood at 0.8 per cent of GDP.
Across the eurozone, the average government debt ratio rose to 88.9 per cent of GDP at the end of the first quarter, up from 87.7 per cent three months earlier. The EU average also increased, reaching 82.9 per cent, compared with 81.8 per cent at the end of 2025.
Compared with the same period last year, the debt ratio climbed from 87.2 per cent to 88.9 per cent in the eurozone and from 81.4 per cent to 82.9 per cent across the EU.
Quarter-on-quarter, 17 EU member states reported higher debt-to-GDP ratios, while eight recorded declines. Latvia and the Czech Republic reported no change.
Hungary posted the largest quarterly increase at 3.1 percentage points, followed by Lithuania, Luxembourg, Ireland, Croatia and Austria. Greece recorded the biggest quarterly reduction, with its ratio falling 2.6 percentage points, ahead of Bulgaria, the Netherlands and Slovenia.
Looking at annual comparisons, 19 member states recorded higher debt ratios than a year earlier, while eight recorded lower levels. Finland, Bulgaria and Poland registered the largest annual increases, while Greece, Cyprus and Slovenia reported the biggest declines.
