According to the Cyprus Statistical Service (Cystat), Cyprus recorded a deficit of € 800 mln in the period April - June 2020, compared to a surplus of € 140 mln in the second quarter of 2019.
Nicosia, Cyprus: 23 October 2020
Cypriot government spending increased due to measures taken to support the economy in the second quarter 2020. This is directly related to the full lockdown ordered to control the spread of the COVID-19 Pandemic.
Total revenue in Q2 2020 reached € 1.58 bln, while total expenditure reached € 2.38 bln.
The main categories of revenue for April - June 2020 were:
Taxes on production and imports reached € 0.63 bln, which is 27% lower compared to Q2 2019.
Taxes on income and wealth reached € 0.26 bln, which is 20% less than Q2 2019
Social contributions reached € 0.48 bln, which is 19% less than Q2 2019.
The sale of goods and services reached € 0.13 bln, which is 22% less than Q2 2019.
The main categories of expenditure for April – June 2020 were:
Social transfers reached € 0.76 bln, 4% more than Q2 2019.
Compensation of employees reached € 0.64 bln, 3% more than Q2 2019.
Capital expenditure reached € 0.08 bln.
Intermediate consumption reached € 0.33 bln, 41% more than Q2 2019.
Subsidies reached € 0.29 bln, a massive € 0.28 bln increase over Q2 2019.
This performance shows the impact of measures taken to support enterprises and employees, and the suspension of various sectors of the economy, as a result of the Covid-19 pandemic.
Navigator Consulting has been reporting extensively on the risks and impacts of COVID-19 on the companies in Cyprus. We support clients restructure their operations to prepare for COVID-19 and wider unfolding risks and opportunities in the region.
For further information, please contact:
Philip Ammerman
Managing Director
Sources:
KNEWS Kathimerini. 23 October 2020
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