Saudi Arabia, ’s Q1 GDP falls 1.8 per cent as oil sector weighs
Saudi Arabia’s real gross domestic product (GDP) decreased 1.8 per cent year-on-year in the first quarter due to a decline in oil activities.
fiscal surplus
Cyprus, ’ cash reserves to aid government amid global uncertainty
The Public Debt Management Office (PDMO) released its annual report for 2023, stating that the robust cash reserves of the Republic of Cyprus are expected to support the government in addressing uncertainty in the global economy. The report highlighted that the strong cash position of Cyprus will help limit negative impacts on cost-risk indicators to moderate levels. Additionally, the reduction in debt in 2023 amounted to €740 million, mainly due to strong economic growth. The majority of Cyprus’ short-term debt is distributed over the period 2024-2028, with 2028 representing the year with the highest annual debt maturity concentration. The PDMO intends to issue at least one benchmark bond per year to cover the government’s financing needs. The surpluses of the Social Insurance Fund are invested in the government annually, with investments amounting to €10.61 billion at the end of 2023.
Cyprus government and banks piling-up cash
By end-February 2024, the government had accumulated cash deposits of over €3.5 billion at the Central Bank and €2.1 billion at commercial banks.
Revenue growth outpaces expenses in early 2024
The General Government’s fiscal surplus exceeded half a billion euros in the first two months of the year, showing an increase of 34% annually, reaching 1.7% of GDP. Total revenues for January-February 2024 increased by 16.7% to €2,328 billion compared to the same period in 2023. Specifically, income from income and wealth taxation increased by 20.1%, social contributions increased by 17.1%, and interest and dividends received increased by 7.7%. Total expenses for the same period increased by 12.3% to €1,793.2 billion, with personnel expenses increasing by 15.8% and social benefits increasing by 12.9%.