Cyprus forecasts growth and budget surplus for 2027 as Akel challenges economic outlook

Nicosia, Cyprus. Finance Minister Makis Keravnos said on Monday that Cyprus expects economic growth in 2027 despite pressures from crises abroad, as he presented the state budget for that year to parliament.

Growth, inflation and public finances

Keravnos put projected average GDP growth for 2027-2029 at approximately 3 per cent. Inflation is expected to ease to 2.5 per cent in 2027, compared with an overall rate of 4.6 per cent for 2026.

He said the general government would again record a surplus in 2027, equivalent to around 3.9 per cent of GDP, while the public debt-to-GDP ratio would decline further.

Welfare spending amid external pressures

Addressing reporters after the parliamentary presentation, Keravnos described a particularly difficult international environment, citing escalating armed conflicts in Ukraine and the Persian Gulf.

He said those wars had triggered a serious energy crisis, putting European economies under pressure and affecting both businesses and individuals.

Against that background, Keravnos described the budget as focused on people. He said the government planned to increase welfare expenditure and introduce targeted measures to address rising living costs.

Akel disputes government’s assessment

In subsequent comments, opposition party Akel accused the government of constructing an artificial portrayal of the economy.

“Macro-economic indicators can neither be eaten nor can they fill up petrol tanks,” Akel MP Aristos Damianou said.