Nicosia: Cyprus is actively working towards creating an extroverted economy as a foundation for business growth and investment, according to Deputy Minister to the President Irene Piki. Speaking at the 12th Cyprus Chamber of Commerce and Industry Business Leader Awards, Piki highlighted the government's commitment to maintaining a strong and resilient economy, especially crucial during times of international geopolitical and economic uncertainty that can affect market prospects.
According to Cyprus News Agency, Piki emphasized the importance of a consistent and reliable economy, describing it as a stable reference point for businesses, enabling long-term planning and investment. She praised the work of the Cyprus Chamber of Commerce and Industry, noting its role in promoting Cyprus as an attractive investment destination and enhancing the extroversion of Cypriot businesses.
Piki recalled the President's vision for a more competitive Cyprus, shared at the CCCI's Annual General Meeting. The vision focuses on extroversion, ease of access to finance, and creating a business-friendly environment. Despite the global uncertainties, the Cypriot economy has demonstrated resilience, with a GDP growth of 3.4% in 2024 and an expected growth nearing 4% in 2025.
Piki reported that inflation rates in Cyprus are among the lowest in the EU, and unemployment has dropped below 5%. International rating agencies have placed Cyprus in category A with a positive outlook, reflecting prudent economic management. The 2026 budget aims to strengthen fiscal stability with a surplus balance, and public debt is projected to be limited to 50.9% of GDP.
Investments in energy, digital infrastructure, technology, and green growth are prioritized to create a stable and predictable business environment. Piki mentioned upcoming plans for a new seven-year framework in collaboration with the business community to secure European resources.
She highlighted the tax reform expected to be implemented on January 1, 2026, which aims to enhance business liquidity and attract investors. The establishment of the Business Support Center will provide new financing tools and advisory services to small and medium-sized enterprises. The Cyprus Equity Fund is investing in innovative businesses, and the Ministry of Energy's Grant Schemes are mobilizing £360 million by 2027 to boost competitiveness.
The government is advancing the digitization of services, with the Business Support Center in Nicosia reducing bureaucracy since 2025. The energy strategy aims to lower business costs, with the competitive electricity market set to launch in October 2025. This will allow businesses to choose their supplier, fostering competition and fairer pricing.
In terms of human capital investment, the government prioritizes attracting talent through the Minds in Cyprus initiative, aiming to repatriate skilled Cypriots in collaboration with CCCI and Invest Cyprus. The Deputy Minister announced plans for events abroad in 2026, targeting the US, the UK, and Greece, encouraging participation.
The Deputy Minister concluded by congratulating the award winners, recognizing them as examples of the dynamism and resilience of the Cypriot business community.