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Cabinet officials

Cyprus' Public Debt Expected to Fall Below 50% of GDP by 2025

Strategic Insights

— 2 min read

Finance Minister Makis Keravnos announced on Wednesday that Cyprus' public debt is expected to fall close to 50% of GDP by the end of 2025, well ahead of earlier targets. This achievement is attributed to strong economic growth, high primary surpluses, and rapid debt reduction. The EU's 2025 European Semester Spring Package assessment for Cyprus also highlights the island's economic progress, including improvements in external and private debt, diversification of the economic model, and advancements on most UN Sustainable Development Goals.

Key Takeaways:

  • Cyprus' public debt is expected to fall below 50% of GDP by 2025, surpassing earlier targets.
  • Strong economic growth, high primary surpluses, and rapid debt reduction have contributed to this achievement.
  • The EU's 2025 European Semester Spring Package assessment for Cyprus highlights improvements in external and private debt.
  • Diversification of the economic model and advancements on most UN Sustainable Development Goals are also noted.
  • The report notes challenges, including a projected 6.8% planned spending growth for 2025, compared to the EU benchmark of 6%.
  • Shipowners are facing mounting scrutiny over scrubber technology, which discharges harmful contaminants into the sea.
  • Cyprus has moved to restrict the use of scrubbers in its port waters, aligning with EU regulations.
  • The Mediterranean SOx ECA came into force on May 1, 2025, joining the North Sea and Baltic Sea.
  • A fresh delay in the new Paphos–Polis Chrysochous road is expected to cause infrastructure problems.
  • Cyprus and Saudi Arabia will sign a memorandum of cooperation (MoU) in tourism, strengthening bilateral ties.
  • Cyprus Seeds collaborated with Conception X to bridge the gap between academic research and commercialization.
  • Columbia group Asia Region's CEO Demetris Chrysostomou rejected claims that Asian shipowners are falling behind, citing the strength and safety record of leading Asian maritime nations.
  • Cyprus' tourism industry set a new record in 2024, surpassing four million visitors for the first time, while posting revenues of more than €3.2 billion.

Statistics:

  • Cyprus' public debt is expected to fall to 50% of GDP by 2025.
  • 6.8% planned spending growth for 2025, compared to the EU benchmark of 6%.
  • €3.2 billion in tourism revenues in 2024.
  • 4,040,200 million arrivals between January and December 2024, a 5.1% increase from 2023.
  • Tourism's contribution to GDP was 18.3%, with employment in the industry exceeding 62,000 jobs.

Sources:

  • Cyprus Mail, "Cyprus' public debt expected to fall below 50% of GDP by 2025"
  • EU's 2025 European Semester Spring Package assessment for Cyprus
  • Cyprus News Agency (CNA)
  • Paphos Chamber of Commerce and Industry (Evep)
  • Cyprus hoteliers association (Pasyxe)
  • Conception X
  • Columbia group Asia Region
  • Cyprus Seeds

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