The deficit, standing at EUR 19m between July and September, was 1.4 percentage points lower than in the third quarter of 2016, fresh data from the Statistics Office show.

The decrease was mainly owing to a 5.8% growth in government revenue, which surpassed the growth in expenditure for the third quarter running.

Year-on-year, government receipts from social contributions increased by 10.5%, receipts from income and property taxes rose by 7%, and revenues from taxes on production and imports were up by 4.2%.

On the revenue side, EU investment grants increased for the first time in the third quarter after six consecutive quarters of decline.

Total government expenditure increased by 2.3% between July and September, the third consecutive quarter of growth. Except for gross fixed capital formation, all main categories of expenditure increased.

In the first three quarters of 2017 the general government deficit was estimated at EUR 134m or 0.4% of GDP, which compares to EUR 549m or 1.8% of GDP in the same period a year ago.

The first nine months of the year saw a strong growth in revenue and a gradual growth in expenditure, which indicates further easing of austerity measures and gradual increase in EU funds absorption although the latter is yet to be fully implemented.

Excluding the cost of interest, general government generated primary surplus for the sixth quarter running; in the third quarter of 2017 it amounted to EUR 297m or 2.7% of GDP (1.4% of GDP a year ago).

Consolidated general government gross debt amounted to EUR 33.285bn or 78.4% of GDP in the third quarter, which is only EUR 17m more than the quarter before.