Cyprus focused on strong economy amid global uncertainty, says Piki

Cyprus’ government is focused on maintaining a strong and resilient economy as the basis on which businesses can plan, invest and grow with certainty, according to Deputy Minister to the President Irene Piki.

Speaking at the 12th Keve Business Leader Awards on behalf of President Nikos Christodoulides, Piki said that in an environment marked by international volatility, “an economy that remains consistent, reliable and resilient” can act as a stable reference point for businesses, strengthening confidence and enabling long-term planning.

She praised the Cyprus Chamber of Commerce and Industry (Keve) for its role in promoting Cyprus as an investment destination and supporting the outward orientation of local businesses.

Referring to the President’s address earlier this week at Keve’s annual general assembly, Piki said the government’s vision for a more competitive Cyprus rests on extroversion, better access to finance and a simpler, business-friendly framework, as the country prepares for its EU Council presidency.

Despite global uncertainty, she said the Cypriot economy “demonstrates its resilience”.

Gross domestic product expanded by 3.4 per cent in 2024, while growth close to 4 per cent is forecast for 2025.

“Inflation remains among the lowest in the European Union and unemployment has already fallen below 5 per cent,” she added.

At the same time, international credit rating agencies have placed Cyprus in the A category with positive outlooks, which, she said, reflects reliable and prudent economic management.

Turning to public finances, Piki said the 2026 budget, expected to be finalised in parliament next week, reinforces fiscal stability through a surplus balance. Public debt is projected to decline to 50.9 per cent of GDP, widening the scope for targeted policy interventions.

She said government policy places particular emphasis on investment in energy, digital infrastructure, technology and green growth, aimed at creating “a stable and predictable environment for businesses”.

With Recovery and Resilience Plan projects nearing completion, planning is now beginning for the next seven-year EU funding framework.

Preparation, she said, will be carried out “timely and methodically, in collaboration with the business world”, to ensure Cyprus can secure European funds from a position of strength.

Piki also pointed to the upcoming tax reform, expected to be approved on December 22 and implemented on January 1, 2026, which she said will strengthen business liquidity and attract investment.

She said the establishment of the National Enterprise Development Organisation marks another key step, offering new financing tools and advisory services to small and medium-sized enterprises.

In parallel, the Cyprus Equity Fund is already investing in innovative companies, while grant schemes under the Ministry of Energy are expected to mobilise €360 million by 2027 to boost competitiveness and extroversion.

On digitalisation, Piki said the government is accelerating reforms, adding that from 2025 a Business Service Centre in central Nicosia will bring together critical licensing procedures, “substantially reducing bureaucracy”.

She also highlighted the government’s energy strategy, which aims to lower costs for businesses.

“The launch of a competitive electricity market in October 2025”, she said, “will allow companies to choose suppliers, fostering competition and fairer pricing”.

Addressing human capital, Piki said attracting talent remains a priority.

The Minds in Cyprus initiative, run in cooperation with the Keve and Invest Cyprus, seeks to encourage skilled Cypriots to return home.

Events are planned for 2026 in the United States, the United Kingdom and Greece, and she invited businesses to take part.

Concluding, Piki congratulated the award recipients, describing them as “living proof of the dynamism, creativity and resilience of the Cypriot business world”, while reaffirming that the government will continue to pursue reforms that support stability, competitiveness and sustainable growth.