Cyprus’ surplus at 3.5% of GDP in 2007

Cyprus recorded a fiscal surplus of EUR537 mln or 3.5% as a percentage of its GDP in 2007, according to Eurostat. This positive development is attributed to increased public revenue. The analysis of Eurostat data leads to the observation that Cyprus is the second best performer among Euro area countries after Finland, which presented a surplus 5.3% of GDP.
Cyprus public debt also recorded a significant decline in 2007, falling from 64.6% of GDP to 59.5%. This is the first time in five years Cyprus achieves a reduction of public debt below 60% of GDP.
According to Eurostat data, public revenue increased from 42.4% in 2006 to 46.5% in 2007, while public expenditure fell to 43% of GDP compared to 43.4% in 2006.
In 2007, the government deficit of both the euro area and the EU27 fell compared with 2006, while the government debt increased in absolute terms. In the euro area, the government deficit decreased from 1.3% of GDP in 2006 to 0.6% in 2007, and in the EU27 it fell from 1.4% to 0.9%. In the euro area the government debt to GDP ratio fell from 68.5% at the end of 2006 to 66.3% at the end of 2007, and in the EU27 from 61.3% to 58.7%.
Cyprus became an EU full member on May 2004. On 1 January 2008, Cyprus joined the euro area thus bringing to fruition the island’s goal of becoming a fully integrated member of the EU.