**Cabinet Approves €11.1 Billion Cyprus Budget for 2027**
On Wednesday, Cyprus' cabinet officially approved the state budget for 2027, amounting to €11.1 billion. This budget, which reflects a significant increase of approximately €470 million compared to the 2026 budget, is set to be submitted to the House of Representatives for approval in December.
Finance Minister Makis Keravnos presented the budget, emphasizing its balanced and development-oriented nature. He expressed optimism regarding the country's economic prospects, forecasting continued growth, full employment, and an increase in the fiscal surplus. "Growth in 2027 is expected to be around 2.9 percent," Keravnos noted, while also suggesting that there are positive indicators that this growth rate could potentially exceed 3 percent.
In terms of employment, the Minister indicated that the unemployment rate is expected to remain at full-employment levels, with a downward trend anticipated. This aligns with the government's broader economic strategy aimed at fostering job creation and sustaining low unemployment rates.
The fiscal outlook for Cyprus appears robust, with the government projecting a substantial fiscal surplus for 2027. The fiscal balance is expected to reach 2.8 percent of the country's gross domestic product (GDP), an increase from the 2.3 percent projected for 2026. Furthermore, the primary balance, which excludes interest payments on government debt, is forecasted to rise to 4 percent of GDP, up from 3.6 percent this year.
Keravnos also addressed the issue of inflation, noting that the outlook for inflation rates will be influenced by fluctuations in fuel prices. The government estimates that inflation will hover around 4 percent in 2027.
The approved budget will now move to the parliamentary stage, where members of the House of Representatives will engage in discussions and ultimately vote on the proposed spending plans in December. The outcome of this process will determine the financial direction for Cyprus in the upcoming year, as the government seeks to enhance economic stability and growth amidst a fluctuating international environment.