Cyprus recorded the second-largest annual reduction in public debt among European Union member states during the first quarter of 2026, according to data published on Tuesday by Eurostat.
The country's public debt declined to €20 billion, down from €20.1 billion in the fourth quarter of 2025 and €21.8 billion in the first quarter of 2025. As a share of gross domestic product (GDP), public debt fell to 54.6%, compared with 55% in the previous quarter and 61.9% a year earlier.
Cyprus among strongest performers in the EU
Compared with the first quarter of 2025, 19 EU member states recorded an increase in their debt-to-GDP ratio by the end of the first quarter of 2026, while eight member states reported a decline.
The largest increases were recorded in:
- Finland (+5.5 percentage points)
- Bulgaria (+4.8)
- Poland (+4.5)
- Romania (+4.3)
- France (+4.0)
- Luxembourg and Belgium (+3.1 each)
The largest reductions were recorded in:
- Greece (-9.4 percentage points)
- Cyprus (-7.4)
- Slovenia (-4.8)
- Portugal (-3.9)
- Denmark (-2.4)
- Spain (-1.7)
Government posts budget surplus
At the same time, preliminary fiscal results prepared by the Statistical Service of Cyprus showed a General Government surplus of €567.1 million for the period January-March 2026.
The figure compares with a surplus of €600.6 million recorded during the corresponding period of 2025.
Debt remains below EU reference level
With public debt standing at 54.6% of GDP, Cyprus remains below the 60% reference level established under the European Union's fiscal framework.
The latest figures indicate a continued downward trend in the country's debt burden, both in nominal terms and as a percentage of economic output.
