Stavrou outlined the chamber's 2025 strategy amid geopolitical uncertainty

Cyprus Chamber of Commerce & Industry (Keve) president Stavros Stavrou on Friday released a year-end statement reflecting on the country’s economic progress.

In addition, Stavrou addressed various challenges on a domestic level, external geopolitical and economic risks, and efforts to drive investment and export growth.

“The year that is ending pleasantly surprised us,” the Keve president siad.

“While everyone expected a sluggish economic trajectory due to uncertainty caused by the war in Ukraine and the conflict in the Middle East, we are now seeing, with the conclusion of 2024, improvements in almost all key economic indicators,” he added.

Stavrou highlighted that Cyprus achieved a growth rate of 3.7 per cent of GDP, and successfully reduced inflation to approximately 2 per cent.

He also mentioned that unemployment has been lowered to below 6 per cent, while public debt has decreased to under 70 per cent of GDP, maintaining a downward trajectory.

He further stated that, by year-end, the three leading international rating agencies have all upgraded Cyprus’ economy to the much-coveted ‘A’ category.

Moody’s cited a substantial reduction in public debt, Fitch highlighted strong fiscal surpluses and robust growth potential, while S&P Global Ratings pointed to improved banking sector resilience and balanced medium-term prospects, despite potential geopolitical risks.

Stavrou described this as “a significant achievement that bolsters our longstanding efforts to attract new foreign investments“.

“These outcomes were unimaginable last year when we were making forecasts for 2024,” he continued. “No one could have predicted the economy’s strong performance. Yet, we succeeded.”

The Keve president explained that “highlighting these achievements underscores that while the economic outlook for 2025 seems promising, no one can predict future developments with certainty“.

“The war in Ukraine continues, the ceasefire in the Middle East hangs in the balance, and new challenges arise from rapid developments in neighbouring Syria,” he added.

Furthermore, Stavrou mentioned that in the coming year, some EU member states, such as Germany and France, are likely to experience prolonged economic recession due to fiscal constraints.

He said that “in both countries, the dire economic situation has already triggered a chain of political changes”.

Stavrou also commented on the forthcoming Donald Trump presidency, as well as what that might entail for Europe.

“Trump appears determined to impose new tariffs on products from China and possibly Europe, which could disrupt global trade and further destabilise international transactions,” he stated.

“As a small economy highly dependent on the external environment, we must manage these challenges while also fortifying our economy to maintain dynamic growth,” Stavrou added.

Stavrou pointed out that the chamber has “presented its views and proposals at the highest governmental levels, and in the public sphere”, during its recent annual general meeting.

“In our opinion, Cyprus should focus on two key pillars in 2025,” Stavrou said.

These include “immediate initiatives to address unresolved domestic issues“, as well conducting a “proper analysis and evaluation of the external environment to promptly address potential unforeseen risks“.

Stavrou acknowledged several pressing domestic concerns. These include persistently high prices, increased energy costs, and high bank interest rates.

He also stressed the need to expedite reforms, advance digital transformation, and streamline bureaucracy.

Moreover, Stavrou highlighted the importance of addressing challenges within the national health system (Gesy), facilitating technological upgrades for businesses, enhancing exports, and attracting foreign investments.

He also mentioned that “labour issues are expected to be prominent in 2025“.

“Externally, we must focus on new geopolitical balances in our region and economic developments within the EU, which may create new dynamics internationally,” Stavrou stated.

“By following this strategy, we will protect our economy against potential new challenges and intensify efforts with targeted overseas missions to promote export products and services while attracting quality investments to our country,” he added.

Additionally, Stavrou said that the chamber “has historically been and will remain a key player in economic affairs”.

He mentioned that “its recommendations, positions, and institutional role contribute constructively to the overall interests of the economy and the social well-being of our fellow citizens”.

“Guided by these principles, we will support every effort aimed at modernising the economy“, the Keve president said.

He explained that this involves “strengthening both traditional and new sectors, promoting economic extroversion, and generally supporting the business community”.

Stavrou continued by saying that “the entrepreneurs who are members of the chamber will dedicate their full strength, knowledge, and experience to ensuring another successful year in 2025“.

He concluded by saying that there is “cautious optimism that the new year will bring positive results for the economy and Cyprus“.