Cyprus Achieves Major Cuts in Debt-to-GDP Ratio, Standing Out Among EU Nations

Cyprus has outperformed its EU peers in managing public debt, achieving a significant reduction in its gross government debt-to-GDP ratio.

By the end of the second quarter of 2024, Cyprus’ debt-to-GDP ratio stood at 70.5%, marking a decrease of 2.1 percentage points from the previous quarter and an impressive 10 percentage points year-on-year. This is the largest reduction among EU member states during this period.

In contrast, the eurozone’s debt ratio increased slightly to 88.1%, while the EU average rose to 81.5%. These figures highlight Cyprus’ success in debt management compared to its European counterparts, many of which saw increases in their debt ratios.

Cyprus’ performance stands out as a positive example within the EU, with the largest annual reductions in public debt. This accomplishment is largely attributed to strong fiscal policies and a solid economic recovery, allowing the country to reduce its debt burden significantly.