Nicosia, Cyprus. Cyprus recorded a provisional general government surplus of 2.4% of GDP in the third quarter of 2025, according to seasonally adjusted data released by Eurostat. Over the same period, the euro area deficit-to-GDP ratio rose to 3.2%.
Cyprus fiscal balance in 2025
Cyprus’ surplus in the third quarter of 2025 marked a decrease of 0.2 percentage points from the second quarter, when it stood at 2.5%. The country recorded a surplus of 5% in the first quarter of 2025 and 4.9% on September 30, 2024.
Euro area and EU deficit trends
Across the euro area, the deficit-to-GDP ratio increased from 2.8% in the second quarter of 2025 to 3.2% in the third quarter. In the European Union, the deficit climbed from 2.9% to 3.2% over the same period.
Euro area revenue and expenditure
In the third quarter of 2025, total government revenue in the euro area was 46.7% of GDP, down from 46.8% in the previous quarter. Government total revenue increased in absolute terms by around €13 billion, but this was outweighed by a larger increase in GDP. Total government expenditure rose to 49.9% of GDP from 49.5% in the second quarter, driven by an increase in seasonally adjusted total spending of around €32 billion.
How do changes in government revenue and expenditure affect the deficit-to-GDP ratio?