Minister of Finance Makis Keravnos stressed on Thursday that the European Commission's Spring Forecasts confirm the strong resilience of the Cypriot economy. This baseline stability is maintained despite an environment of heightened international uncertainty directly impacted by regional armed conflicts.

According to the Commission's data, the growth rate of the Cypriot economy is projected to reach 2.3% in 2026 and accelerate to 2.7% in 2027. This growth trajectory allows Cyprus to maintain its fiscal surplus at highly satisfactory levels while facilitating a continuous reduction in the country's public debt.

Conditions within the national labor market are expected to remain exceptionally strong. Total employment is projected to increase by 1.3% in 2026. Simultaneously, the unemployment rate is forecast to drop to 4.2%, marking the lowest level recorded in Cyprus in a decade. Minister Keravnos emphasized that these metrics consistently outpace the average performance of both the Eurozone and the wider European Union.

The release of the forecasts coincides with a high-profile diplomatic window for the island. Within the framework of the Cyprus Presidency of the Council of Europe, the country is hosting the informal Eurogroup and Ecofin Councils over the next two days, convening all European Union Finance Ministers and Central Bank Governors.

Minister Keravnos concluded that the European Commission's positive outlook serves as validation for current state strategy, encouraging the government to maintain consistency, responsibility, and strict fiscal discipline. This policy aims to safeguard a secure investment environment and incentivize entrepreneurship while insulating the domestic market from ongoing global risks.

Source: CNA (ΚΥΠΕ)