Cyprus is no longer considered a country with macroeconomic imbalances, according to the European Commission’s 2025 Spring Package under the European Semester.

This decision follows a sustained reduction in vulnerabilities related to external and private debt, supported by strong economic growth.

At the same time, the European Commission has issued targeted policy recommendations to guide the continuation of reforms and investments, as Cyprus still faces significant challenges in areas such as innovation, the green transition, education, and long-term care.

A senior EU official explained that the commission identified five positive trends in the Cypriot economy.

They said that “economic growth in Cyprus remains strong despite a fragile international environment.”

Cyprus is expected to experience a decline in both rental and property purchase prices in the coming years, President Nikos Christodoulides announced this week.

Speaking at a dinner hosted by the Cyprus Property Developers Association in Limassol, the president attributed the anticipated price drop to new housing developments that are set to balance supply and demand in the market.

Addressing attendees, including Interior Minister Constantinos Ioannou, Christodoulides described real estate and construction as a ‘key pillar’ of the Cypriot economy, contributing 15 per cent to GDP and employing over 40,000 people.

He thanked the association for its cooperation, describing its input as “constructive” in strengthening the business development framework and making the economy “more resilient and more competitive.”

Referring to ongoing reforms, he said the government’s housing policy aims to address the housing issue with targeted measures that increase supply, particularly for young people, through the production of affordable units.

Cyprus and Greece have agreed to step up cooperation in research and innovation, following high-level talks in Athens between senior officials from both countries.

The meeting brought together Theodoros Loukaidis, Director General of the Research and Innovation Foundation (RIF), and Anastasios Gaitanis, Secretary General for Research and Innovation of Greece.

It focused on “strengthening bilateral ties and seizing shared opportunities in the rapidly evolving sectors of research and innovation”.

According to an announced by the RIF released on Wednesday, the meeting “confirmed the mutual will of both countries to forge closer collaboration in these areas”.

Greek retail group Jumbo reported a strong rise in store sales across Cyprus and Greece in May 2025, reflecting a gradual rebound after a slower start to the year due to Easter falling much earlier than in 2024.

Sales at Jumbo’s Cyprus stores increased by 14.5 per cent in May compared to the same month last year, bringing year-to-date growth to 8 per cent for the January–May period.

This marks a robust rise from the 6 per cent increase reported at the end of April.

Across the group, sales rose by 12 per cent in May, while cumulative sales for the first five months of 2025 were up 8 per cent year-on-year.

The company said that “the recovery became visible in the second half of May and is expected to continue into June, particularly in summer product categories.”

The number of registered unemployed persons in Cyprus stood at 7,378 at the end of May 2025, according to data released on Wednesday by the Cyprus Statistical Service (Cystat).

However, based on seasonally adjusted figures, which better reflect underlying trends by eliminating seasonal effects, registered unemployment for May dropped slightly to 9,708 persons, compared to 9,729 in April.

This marks a strong year-on-year decline of 781 persons, a drop of 9.6 per cent, when compared with May 2024.

Cystat attributed this decrease primarily to lower unemployment in key sectors including financial and insurance activities, construction, education, and manufacturing.

A decline was also noted among newcomers to the labour market.

Hotel occupancy in Cyprus was slightly down in May, compared to the same month last year, according to the president of the Cyprus Hoteliers Association (Pasyxe) Thanos Michaelides.

However, overall figures for the first half of 2025 are expected to surpass those of 2024, as bookings continue to gain pace heading into the summer.

Speaking to the Cyprus News Agency (CNA), Michaelides said the summer season is showing encouraging signs.

He referenced the expected boost over the Holy Spirit weekend (Kataklysmos), driven largely by local demand.

“The flow of reservations for June, July and August appears satisfactory,” he said, adding that occupancy will likely hover around last year’s levels, with a chance of slight improvement as the season progresses.

For June, occupancy is forecast to range between 75 and 80 per cent.

The shareholders of Cypriot beverage company KEO plc approved a series of key resolutions during the company’s annual general meeting held this week, according to a submission on the Cyprus Stock Exchange.

During the meeting, the annual report and the consolidated financial statements of the group for the year ended December 31, 2024, were approved.

Two board members, Vasos Komodromos and Chris Georgiades, who retired by rotation in accordance with the company’s articles of association, were re-elected to the board of directors.

Additionally, Odysseas Christodoulou, Simos Angelides and Marios Stavrou, who had been appointed as board members in February 2025 with their terms ending at the AGM, were formally elected by shareholders to continue serving on the board.

The Research and Innovation Foundation (RIF) this week announced that it has secured an additional €7.5 million in funding for the new “Open Access Research Infrastructures” programme.

This initiative, the foundation said, is aimed at strengthening Cyprus’ research capabilities.

According to the announcement, the initiative will support the acquisition of cutting-edge, specialised equipment for experiments and testing, which will be accessible to the research and business community.

The programme is targeted at research organisations and provides funding for the purchase and installation of research infrastructure equipment, which will be used by the Research and Innovation ecosystem through open access policies.

The total budget for the call amounts to €7,500,000. The maximum funding available per project is €500,000.

The Cyprus Innovation Awards 2025, organised by the Employers and Industrialists Federation (Oev), have been approved for inclusion in the official programme of the European SME Week.

The European SME Week is a pan-European initiative led by the European Commission aimed at encouraging entrepreneurship and raising awareness about the vital role of small and medium-sized enterprises (SMEs) within the European Union.

Held each year, usually in November, the campaign includes a range of events, workshops, and conferences designed to support current business owners, inspire new ventures, and emphasise the significance of SMEs to the EU economy.

In terms of this year’s Cyprus Innovation Awards, Oev said that more details will be released in the near future.

The competition will culminate with an awards ceremony honouring the winners during the first half of 2026, coinciding with Cyprus’ Presidency of the Council of the European Union.