Nicosia: Cyprus is on a steady path of progress, credibility, and resilient growth, said Government Spokesman Konstantinos Letymbiotis. This comes as a clear political confirmation from the European Commission’s autumn forecasts for the Cypriot economy, during a time when Europe and the international economy are facing uncertainties, geopolitical tensions, and shifting balances.
According to Cyprus News Agency, the Commission has revised its growth forecasts for Cyprus upwards, projecting a growth rate of 3.4% in 2025 from an earlier estimate of 3%, and 2.6% in 2026 from 2.5%. This positions Cyprus third in terms of growth performance within the Eurozone, with a difference of nearly two percentage points above the Eurozone and EU average.
“This performance is the result of systematic planning, sound fiscal management, and targeted reforms aimed at structurally strengthening the country’s economic model,” Letymbiotis stated.
The Commission attributes the strong growth primarily to domestic demand, the bolstering of investments, particularly with the anticipated completion of the Recovery and Resilience Plan projects by 2026, and the consistent momentum of export services.
Inflation is expected to ease to 0.9% in 2025 and move close to 2% by the end of the forecast horizon. The labour market is also performing at historic levels, with unemployment projected to fall to 4.7% in 2025 and 4.3% in 2027.
Public finances in Cyprus remain on a positive trajectory, with steady surpluses ranging from 3.3% of GDP in 2025 to 3.2% in 2027. Additionally, public debt is projected to decline to 56.4% in 2025, 51% in 2026, and 45.7% in 2027.