Nicosia: Finance Minister Makis Keravnos expressed satisfaction with the performance of the Cypriot economy in a statement to the Cyprus News Agency (CNA), while assuring that the Ministry of Finance 'will consistently continue the careful and prudent fiscal policy it has been pursuing', which 'strengthens the credibility and resilience of the economy'.
According to Cyprus News Agency, the Finance Minister commented on data released by the Statistical Service and Eurostat regarding the Cypriot economy's performance in the first half of 2026. The figures reveal that the Cypriot economy maintained a strong growth rate despite a challenging European and international environment. Real GDP increased by 3.3%, significantly outpacing the euro area's growth of just 1%.
Keravnos emphasized that Cyprus is experiencing growth at more than three times the European average, while many European economies are struggling to maintain momentum. He highlighted the diverse contributions to this growth, with significant input from wholesale and retail trade, the information and communications sector, financial and insurance activities, and construction.
The Finance Minister noted that the broad spread of growth across various sectors enhances its sustainability. He further reported that fiscal indicators are also positive, with the General Government surplus reaching £770.6 million, or 2.0% of GDP, for the January-July 2026 period, marking an improvement over the previous year.
Keravnos highlighted that public debt fell to 55.0% of GDP at the end of 2025, dropping below the 60% threshold for the first time since 2009 and continuing to decline, while unemployment remains at its lowest levels in the past decade. He credited international rating agencies for confirming this positive performance. In 2026, Standard and Poor's in March and Fitch in May maintained the Republic of Cyprus at investment grade A- with a positive outlook, while Moody's affirmed its A3 rating, anticipating further fiscal surpluses and a decrease in public debt.
Keravnos pointed out that these evaluations are independent assessments based on fiscal discipline, the reduction of public debt, and the stability of the financial system.
The Finance Minister also addressed the ongoing challenges faced by households and businesses due to geopolitical tensions, regional conflicts, and the global energy crisis. These factors have led to imported inflation driven by international energy prices, impacting citizens' incomes and increasing business operating costs. According to Keravnos, the Government remains committed to implementing economic policies and reforms that ensure the benefits of growth are experienced by households and businesses.
