Economy on a positive trajectory, Finance Minister says

Finance Minister Makis Keravnos expressed confidence in the state of the economy, countering recent concerns raised by the Fiscal Council.

Responding to questions regarding a story published in Politis daily, Keravnos said the Ministry is committed to achieving primary surpluses to ensure the country’s financial trajectory remains on track and aligns with the Maastricht criteria by the end of 2026.

While declining to directly comment on Politis’ front-page report, Keravnos referred to the Fiscal Council’s president’s statements, which he stated recognised that the economy is presently stable and heading in a positive direction.

Backing his response with figures, the Finance Minister said that between January and May 2023, Cyprus’ fiscal balance reached €344 million, a substantial increase compared to the €140.8 million recorded during the same period in 2022. Furthermore, the public debt as a percentage of GDP decreased from 90% in January-May 2022 to 83.6% currently.

Keravnos revealed that revenue had grown at a rate of 15%, while expenses had risen by 9.7% during the same period, showcasing a solid financial stance. The Finance Ministry will be monitoring developments on a daily basis to sustain this positive trajectory in the coming years, he said.