The European Commission's spring 2026 economic forecasts confirm the resilience of the Cypriot economy against a backdrop of heightened uncertainty driven by ongoing armed conflicts, Finance Minister Makis Keravnos said in a written statement on Thursday.
According to the Commission's projections, Cyprus's economy is forecast to grow by 2.3% in 2026 and 2.7% in 2027, while maintaining a satisfactory fiscal surplus and continuing to reduce public debt. Labour market conditions are expected to remain strong, with employment projected to rise by 1.3% in 2026 and unemployment forecast to fall to 4.2%, the lowest level in a decade. Keravnos noted that these figures place Cyprus's performance consistently above the eurozone and EU averages.
The minister's statement comes as Cyprus prepares to host the informal Eurogroup and Ecofin councils over the coming two days, bringing together all EU finance ministers and central bank governors as part of Cyprus's current presidency of the Council of the EU.
"The European Commission's spring forecasts encourage us as a government to continue with consistency, responsibility and discipline in our economic policy, which creates secure conditions for investment and incentives for business development, while giving due importance to protecting the economy from the potential risks posed by the continuing uncertain international environment," Keravnos said.
