Cyprus’ GDP is expected to grow by 3.2 per cent in 2025, slightly lower than the figure of 3.4 per cent reported for 2024, according to the Central Bank of Cyprus (CBC).

This figure was included in the CBC’s latest macroeconomic forecasts for the period 2025-2027, which we were released on Monday.

The forecasts cover a number of key indicators such as Gross Domestic Product (GDP), unemployment, inflation, and core inflation (excluding energy and food).

The forecast also includes an analysis of potential deviations from the baseline scenario for both GDP and inflation.

Beyond the current year, the CBC reported that the Cypriot economy is projected to grow by 3.1 per cent annually during the period from 2026 to 2027.

The Cyprus International Businesses Association (CIBA) has sent a letter to Finance Minister Makis Keravnos, raising a series of questions regarding the proposed tax reform and its impact on foreign investments and international businesses operating in Cyprus.

The letter, signed by CIBA board president Doxia Nikia Hadjivassiliou, was also addressed to Deputy minister to the president Irene Piki, the chair and members of the House finance committee, as well as the working group responsible for the reform.

Hadjivassiliou stated that CIBA has always supported a comprehensive restructuring of Cyprus’ tax framework to enhance economic competitiveness while remaining in line with European Union regulations and commitments.

However, she stressed that any changes must also consider the global economic and legal landscape, including developments in the United States under the strategic cooperation agreement.

The Bank of Cyprus (BoC) on Monday announced that it has received the title of ‘Best Private Bank Cyprus 2025‘ by Global Banking & Finance Review magazine.

The bank said that this award “reaffirms its position as the country’s leading financial institution“.

“The recognition highlights the bank’s exceptional private and affluent banking services as well as its commitment to delivering tailored wealth management solutions that meet the investment and banking needs of high-net-worth and affluent individuals,” it added.

The bank also said that the award reflects its “ongoing dedication to excellence in private banking, with a strong emphasis on personalised service, tailored financial solutions, and expert advisory support”.

A Troika delegation, consisting of representatives from the European Commission, the International Monetary Fund (IMF), and the European Central Bank (ECB), has arrived in Cyprus for a series of meetings with Cypriot authorities.

The discussions, which will run until March 20, are part of Cyprus’ 18th post-programme surveillance review.

The Finance Ministry announced on Monday that these meetings will include representatives from the European Stability Mechanism (ESM) alongside officials from the European Commission, the ECB, and the IMF.

The primary focus of the discussions is to assess the economic, fiscal, and financial conditions of the country.

“As part of this process, meetings will be held with key officials from the relevant Cypriot authorities, during which economic, fiscal, and financial matters will be discussed, as is customary,” the ministry stated.

The European Union (EU) is facing challenges that raise concerns about its competitiveness, according to Andreas Antoniades, Secretary-Director of the Nicosia Chamber of Commerce and Industry (Evel).

Antoniades points to a report by Mario Draghi, former president of the European Central Bank and former Prime Minister of Italy, which, he explained, highlights “structural weaknesses that hinder the bloc’s ability to compete with economic powerhouses such as the United States and China”.

“The EU has seen a widening GDP gap with the US,” Antoniades said, adding that in previous years, the bloc benefited from a favourable global environment, trade agreements, and security guarantees under the US umbrella.

“However, the global landscape has since shifted,” he said.

He also pointed out that Draghi’s report warns about a decline in global trade growth, increasing competition, and Europe’s abrupt loss of its primary energy supplier, Russia.  

Two major investment funds, CarVal Investors and Caius Capital LLP, have significantly reduced their holdings in the Bank of Cyprus in recent months, marking a controlled divestment process.

Caius Capital LLP first became a major shareholder in the Bank of Cyprus in the summer of 2019, increasing its stake to 9.58 per cent by the end of 2020.

Since 2021, however, the firm has gradually reduced its shareholding. By January 2025, its stake had declined to 4.98 per cent after multiple sales, including transactions in September 2021, April 2022, June and October 2023, and most recently in January 2025.

Many hotels across Cyprus’ tourist areas have undertaken partial or extensive upgrades in recent years, despite challenges facing the tourism sector.

Hotel industry representatives highlight that Cyprus relies on its high-quality hotel facilities and services to maintain competitiveness in the region.

Cyprus aims to reduce conventional vehicle use from 97 per cent to 70 per cent by 2030, under its National Energy and Climate Plan (NECP), requiring the registration of 85,000 electric vehicles.

However, with just 2,270 electric vehicles sold last year—largely due to a state subsidy programme—the target appears difficult to achieve given current market conditions.

As of December 31, 2024, Cyprus had 1,601 registered plug-in hybrid vehicles and 5,360 electric vehicles, including motorcycles, vans, saloons, and buses, according to the Registrar of Motor Vehicles.

The number of job vacancies in Cyprus rose by 8 per cent year-on-year during the fourth quarter of 2024, reaching 12,997 positions, according to data released by the Cyprus Statistical Service (Cystat).

When compared to the same period in 2023, the number of vacancies increased by 959 positions.

However, on a quarterly basis, vacancies dropped by 18.8 per cent, corresponding to a decrease of 3,013 positions, when compared to the third quarter of 2024.

The Cyprus Stock Exchange (CSE) recorded modest gains on Monday.

At 13:16, the general index stood at 232.09 points, reflecting an uptick of 0.35 per cent.

The FTSE/CySE 20 Index edged up by 0.37 per cent to 140.70 points.

By the same timestamp, total transaction value reached €302,624.

In sectoral performance, the main market index climbed by 0.49 per cent, while the investment companies index posted a notable gain of 1.81 per cent.

Conversely, the alternative market index dipped slightly by 0.05 per cent, with the hotels index remaining unchanged.

Bank of Cyprus attracted the highest trading volume at €200,930, with its stock price remaining stable. Demetra Holdings saw an increase of 1.85 per cent, recording trades worth €38,361.

Meanwhile, Logicom remained unchanged with transactions amounting to €21,902. Hellenic Bank also held steady at €16,799 in trades, while Petrolina rose by 1.06 per cent with a volume of €9,500.

By the end of the session, 7 stocks advanced, 3 declined, and 5 remained unchanged across 95 transactions.