Economy · Republic of Cyprus · CYPRIVO
Cyprus approves 2027 budget with 2.8% surplus target
September 16, 2026 · 3 MIN READ · STORY 120
The cabinet expects 2.9% growth, 4.5% unemployment and public debt falling to 46.6% of GDP in 2027.
What this report covers
The budget applies to the Republic of Cyprus and is separate from North Cyprus public finances.
Local context
The Council of Ministers approved the 2027 state budget bill and the 2027–2029 medium-term fiscal framework. Priorities include a budget surplus, lower debt, restraint in public employment, green and digital investment, sustainable growth and financial stability.
Who this matters to
Capital spending is forecast to rise 2.1% and social benefits 2.9% in 2027. The baseline projects 2.9% economic growth, 4.5% unemployment, a 2.8%-of-GDP fiscal surplus and debt falling from 49.9% of GDP in 2026 to 46.6% in 2027; geopolitical, climate and Vasilikos LNG-terminal risks remain.
Source note
Official source ↗