Fiscal surplus of 3.2% of GDP in first seven months

Cyprus posted a fiscal surplus of EUR 695.8 mln or 3.2% of GDP from January – July 2019, compared to EUR 488.5 mln the same period of last year, according to official data.

Total spending rose by 8.7% while total revenue increased by 12.4% year on year. Total expenditure for the first seven months of 2019 recorded an increase of EUR 345.9 mln (+8,7%) reaching EUR 4.33 bln (EUR 3.98 bln in 2018).

Social benefits recorded the biggest increase (EUR 143,8 mln or 9,5%) to EUR 1.66 bln compared to EUR 1.51 bln in January-July 2018.

The compensation of employees (including imputed social contributions and pensions of civil servants) also recorded a considerable increase (EUR 125.6 mln or 9,7%) and reached EUR 1.419 bln (as compared to EUR 1.29 bln in January-July 2018). Intermediate consumption increased by EUR 71.5 mln to EUR 441.7 mln from EUR 370.2 mln in the same period last year. Revenue from taxes on income and wealth also increased significantly (by EUR 101.9 mln) and reached EUR 1.06 bln from EUR 958.2 mln in 2018.

Revenue received from taxes on production and imports rose EUR 44 mln to EUR 1.94 bln from EUR 1.89 bln. However, net VAT revenue registered an increase of EUR 60.4 mln to EUR 1.24 bln from EUR 1.18 bln last year.

Property income increased EUR 22 mln to reach EUR 92.5

mln from EUR 70.5mln.

Economic sentiment in August improved significantly, after consecutive months of negative territory, buoyed by stronger business confidence in services, retail trade and construction, according to the University of Cyprus benchmark index. The monthly Economic Sentiment Indicator (ESI-CypERC), calculated by the university’s Economics Research Centre increased by 3.6 points to 111.4 in August, compared with the previous month.