Nicosia: Cyprus will continue to pursue a prudent and pro-growth fiscal policy, ensuring credibility, reducing public debt, and maintaining buffers for future economic shocks, Deputy Minister to the President, Irene Piki, stated during her address at the EU IFI Network Thematic Conference 2026 in Nicosia.
According to Cyprus News Agency, despite facing a challenging international environment, Cyprus remains one of the better-performing economies within the European Union. The country's growth for 2025 is projected at approximately 4%, maintaining a strong multi-year trend. Piki emphasized the importance of responsible public finances as a foundation for growth, investment, and social cohesion, highlighting that unemployment is at its lowest level since 2008, indicating a dynamic labor market and new opportunities for citizens.
Piki outlined that Cyprus's public finances are robust, with high primary surpluses and consistent growth setting public debt on a firm downward trajectory. Estimates suggest public debt will be slightly above 50% by the end of 2026. She credited disciplined budgeting, timely reforms, and a focus on competitiveness and resilience for these outcomes, which have led to upgrades in Cyprus's credit ratings by international agencies.
The Deputy Minister noted that the new EU economic governance framework aids Cyprus in maintaining its fiscal path by setting clear, realistic rules focused on debt sustainability and manageable deficits. This framework allows governments to plan credibly and predictably, fostering confidence among households, businesses, and investors.
Piki expressed optimism about Cyprus's medium-term economic outlook, emphasizing the need for fiscal prudence alongside reform and delivery. She highlighted Cyprus's commitment to advancing a forward-looking agenda during its Presidency of the Council of the EU, aimed at strengthening fiscal stability and promoting sustainable growth across the Union.
The Deputy Minister praised the Cyprus Fiscal Council's assessments and recommendations as influential in policy-making, and acknowledged the role of independent fiscal institutions in building trust through transparent decision-making. She reiterated Cyprus's commitment to prudent fiscal policy, investing in long-term growth drivers, and acting on the Fiscal Council's recommendations to ensure broad-based benefits for citizens.