Finance Minister Makis Keravnos will present the 2025 state budget before the House of Representatives at 4:00 PM today. A three-day parliamentary debate on the budget is scheduled for mid-December, culminating in a vote for its approval or rejection.

The proposed state budget for 2025 totals €10.2 billion, featuring a surplus of 3.3% of GDP and a primary surplus of 4.8% of GDP. Minister Keravnos highlighted increased allocations for developmental, capital, social benefits, and transfer expenditures.

• GDP Growth: The Cypriot economy is forecasted to grow steadily, with GDP estimated at €33.86 billion in 2025, reflecting an annual growth rate of 3.1%. Growth is expected to reach €35.66 billion in 2026 (3.2%) and €37.54 billion in 2027 (3.3%).

• Public Debt: Public debt is set to decrease from 69.3% of GDP in 2024 to 64.2% in 2025, dropping further to 53.5% by 2027.

• Unemployment: The unemployment rate is projected to decline progressively, from 5.0% in 2024 to 4.8% in 2025, reaching 4.5% by 2027.

• Inflation: Inflation, based on the Harmonized Consumer Price Index, is expected to remain stable at 2.0% annually between 2025 and 2027.

• Revenue: Budget revenues for 2025 show an increase of 6.2% compared to 2024.

• Expenditure: Expenditures reflect a slight decrease of 1.2%, emphasizing fiscal discipline while accommodating higher developmental and social spending.