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Cyprus is expected to record a budget surplus for a third consecutive year in 2027, while public debt continues to fall, Finance Minister Makis Keravnos told lawmakers Thursday.
Presenting the 2027 state budget to the House of Representatives, Keravnos said the surplus was forecast at about 4% of gross domestic product. Public debt is expected to drop to 45.2% of GDP by the end of the year.
The economy is forecast to grow by 2.9%, while unemployment is expected to remain low at around 3.8%. Inflation is projected to ease to 2.5%.
Keravnos said the figures reflected the government’s careful management of public finances and created a stronger foundation for supporting households and businesses where help is genuinely needed.
He urged lawmakers to approve the budget on time and preserve its fiscal balance, arguing that delays could hold up government programs and public projects.
Why it matters
A budget surplus and lower public debt may sound like numbers meant for economists, but they affect how much the state pays to borrow and how much room it has to respond during a crisis.
Healthier finances can provide more space for targeted assistance, infrastructure, and public services without creating more debt. However, the test for households will be whether the strong figures eventually translate into meaningful help with everyday costs, not simply an impressive spreadsheet.
