President Nikos Christodoulides on Tuesday welcomed the European Commission’s latest economic forecast, describing it as a “clear endorsement of Cyprus’ resilience, stability and prudent policymaking”.
Speaking during the opening of a cabinet session at the Presidential Palace, Christodoulides said the Spring 2025 Economic Forecast, released by the European Commission on Monday, “is particularly important, even more so at this juncture”.
“It is very important that the forecast confirms both the resilience and stability, as well as the positive momentum of the economy,” he said.
The commission projects Cyprus’ economy will grow by 3 per cent in 2025 and by 2.5 per cent in 2026, a pace significantly above the eurozone average.
“This reflects our responsible policy, with which we will continue in order to be able to pursue targeted social policy and invest in the fields of education and health,” the president noted.
Moreover, he also pointed to the importance of maintaining strong export performance. “It was a positive reference that exports continue to strengthen and are increasing,” he said.
The European Commission mentioned that Cyprus’ 2024 GDP growth reached 3.4 per cent, driven by a 3.8 per cent rise in private consumption and robust net exports supported by surpluses in tourism, ICT, and shipping services.
Christodoulides highlighted that the economic forecast comes at a time of heightened global instability.
“We are seeing a significantly higher growth rate than the eurozone average, even compared to strong member states of the EU, during a time of international uncertainty and ongoing wars,” he stated.
In this context, he stressed that Cyprus’ public finances remain on a strong footing. “We have a significant budget surplus, which allows us to exercise social policy,” he said.
The European Commission reported that Cyprus posted a 4.3 per cent surplus in 2024, expected to remain solid at 3.5 per cent in 2025 and 3.4 per cent in 2026, even with continued investment in energy infrastructure and social schemes.
Christodoulides also emphasised the importance of debt reduction. “The reduction of public debt below 60 per cent is a historic record for our country, especially when compared to other countries with triple-digit debt levels,” he said.
According to the commission, the debt-to-GDP ratio is forecast to decline to 58 per cent in 2025 and 51.9 per cent in 2026.
Unemployment is also at its lowest level since 2008, the president said. “Unemployment is at a historic low since 2008,” he stated.
“We will continue with the same responsibility in order to be able to carry out targeted social policy,” he added.
The commission said the labour market is strong, with unemployment falling to 4.7 per cent by late 2024, supported by incoming talent through Cyprus’ headquartering policies.
Christodoulides appeared to take a swipe at domestic critics as the country heads into a pre-election period.
“Whatever some may say, we are entering a pre-election period, and we will hear many things that are both costless and not based on real data,” he said.
“We continue with the same responsibility because we are not involved in the election campaign,” he continued. “Our policy is responsible and based on real data, thinking about the future of our country”.
Looking ahead, the president said the government will continue to invest in Cyprus’ long-term development.
“Today we will approve the overall action plan which we will present tomorrow in London, at the first campaign we are launching for the return of talents, the repatriation of talents to our country,” he said.
The event, he said, is being organised in collaboration with the Cyprus Chamber of Commerce and Industry (Keve) and Invest Cyprus.
