The Statistical Service of Cyprus announced yesterday that the country’s General Government fiscal results from January to July 2023 show a robust surplus of €425.7 million, or 1.5% of the GDP. This marks a notable improvement over the same period in 2022, when the surplus was just €109.5 million, amounting to 0.4% of GDP.

This uptick in fiscal health is largely attributed to a €316.2 million increase in revenues, outpacing the growth in expenses. The revenue surge is primarily due to significant gains in both income and wealth tax collections, as well as social contributions.

On the expense side, the increase to €6,171.2 million from last year’s €5,794.8 million (+6.5%) was mainly fueled by a €202.4 million boost in staff salaries, including pensions and social contributions for civil servants, representing an 11.9% hike.

Conversely, the total revenue for January-July 2023 soared to €6,596.9 million, a robust 11.7% jump from €5,904.3 million recorded in the corresponding period last year.

In related economic news, Cyprus experienced a rise in service sector turnover during the second quarter of 2023. This was particularly prominent in accommodation and food service activities, which saw the largest annual increase of 19.4%. Administrative and support service activities grew by 12.9%, followed by information and communication sectors at 11.1%, and professional, scientific, and technical activities seeing a modest 2% increase.

Meanwhile, the Index of Industrial Output Prices for July 2023 stood at 137.3 units, reflecting a 3% decline compared to July 2022. However, there were sectoral variations. Mining and quarrying increased by 6.7% and manufacturing by 4.4%, while electricity supply plummeted by 17% and water supply and materials recovery dropped by 7.6%.

On a month-over-month basis, the index dipped by 1% in July 2023 compared to June 2023. While the mining and quarrying sector remained stable, manufacturing witnessed a marginal 0.1% increase. Electricity supply and water supply sectors saw a decrease of 3.6% and 1.1%, respectively. For the first seven months of 2023, the index showed an overall increase of 9.3% compared to the same period last year.