The Central Bank of Cyprus (CBC) on Friday made a slight downward revision to the country’s growth forecast for 2025, adjusting it to 3.1 per cent from 3.2 per cent in March.

At the same time, a significant reduction in the inflation estimate was also recorded, now set at 1.5 per cent from the previous 2.1 per cent.

The CBC said in its announcement that the projections were completed before the recent conflicts between Israel and Iran, and thus, any related economic impacts are not included.

The Gross Domestic Product (GDP) growth for 2025 is expected to reach 3.1 per cent, compared to 3.4 per cent in 2024, while for 2026 and 2027, the GDP is anticipated to expand by 3 per cent annually.

The projected GDP trajectory is mainly attributed to the expected further increase in domestic demand throughout the forecast period and, to a lesser extent, to external demand during 2026-27, which is negatively affected by the exceptional uncertainty in the global geopolitical and trade environment.

Finance Minister Makis Keravnos on Friday called for urgent action to boost European competitiveness and reinforce the EU’s common defence as he arrived at the Economic and Financial Affairs Council (Ecofin) held in Luxembourg. Keravnos said the European Union is facing “a global climate of political and economic upheavals” which “constantly generates threats and risks”.

Moreover, he underlined the need for the EU to strengthen the single market and take decisions that will enhance its competitiveness, making use of the advantages of the common currency. “The euro, which today is the second strongest currency in the world, inspires trust and security among citizens” he said.

The Cypriot minister also said that there is a need to reinforce the EU’s defence capabilities, stating that “security must be guaranteed for all member states, whether located on the northern, eastern, or southern borders of the union”.

Invest Cyprus on Friday issued a statement welcoming the decision by India’s Drone Destination to establish its European subsidiary in Cyprus.

The agency, tasked with driving investment to the island, described the move as a significant step in strengthening economic ties between Cyprus and India.

The Indian company, which specialises in drone technology and training and is listed on NSE Emerge, announced its investment following the official visit of Indian Prime Minister Narendra Modi to Cyprus at the invitation of Cypriot president Nikos Christodoulides.

The decision signals growing alignment between the two nations and positions Cyprus as a hub for innovation and advanced technology. The new entity will focus on drone development, services, training and drone sports, laying the groundwork for a comprehensive and forward-looking drone ecosystem across Europe.

The draft bill for the privatisation of the Cyprus Stock Exchange (CSE) was submitted to the House of Representatives on Thursday, paving the way for the selection of a strategic partner.

The bill was previously approved by the Council of Ministers during its session on June 4, 2025.

It regulates the procedure for selling the shares of a special purpose vehicle established to facilitate the privatisation of the CSE, handing its operations to a strategic investor. The bill also defines the competent bodies and stages of the privatisation process.

This includes the transfer of operations, responsibilities, activities, functions, assets, and liabilities of the CSE, as well as the transfer of CSE personnel to the Finance Ministry or the provision of compensation based on a relevant voluntary early retirement scheme.

Agros Progress Development Public Ltd, parent company of the Rodon hotel, held its annual general meeting (AGM) on Thursday, during which shareholders approved a dividend distribution and made several changes to the board of directors.

The meeting took place at the company’s registered office in Agros, where shareholders examined the annual financial report, which includes the final audited financial statements for the year 2024.

Moreover, during the AGM, several significant decisions were made. Shareholders re-elected Antonis Pissarides and Nicos Hadjiosif as members of the board of directors.

Bitloops, a startup with team members in both Cyprus and Greece, has secured €1 million in pre-seed funding to advance its AI-powered development platform designed for professional frontend engineers.

According to an official announcement released this week, the funding round was led by Eleven Ventures and Corallia Ventures, along with several angel investors.

The funding aims to accelerate Bitloops’ efforts to redefine how software teams transform Figma designs into high-quality, scalable production code without compromising engineering standards.

“This is not just code generation,” said Vasilis Danias, Co-Founder and CEO of Bitloops. “It is system-aware implementation.”

Logicom Public Ltd on Friday announced the approval of a dividend payment of 10 cents per share, representing 29.4 per cent of the nominal share value, following decisions taken at its annual general meeting (AGM) held on June 19 in Nicosia.

The proposed record date for determining shareholders entitled to receive the dividend is July 3, 2025, with transactions completed by the end of trading on July 1, 2025, included in the record.

As a result, shares will trade cum-dividend until July 1, 2025, and ex-dividend from the start of trading on July 2, 2025. Off-exchange transactions settled in the Dematerialised Securities System by the record date will also confer dividend entitlement.

Petrolina (Holdings) Public Limited this week approved a final dividend of 2 cents per share at its 25th annual general meeting of shareholders.

The decision came as the company reported a significant improvement in its financial results for 2024, reflecting stronger profitability and sustained growth.

During the meeting, the company presented in detail its audited consolidated financial results for 2024.

According to the results, total turnover from fuel stations, commercial customers, and other oil companies amounted to €570.1 million, compared to €559.9 million in 2023.

Moreover, profit before taxes reached €3.1 million, significantly higher than the €692,000 recorded in 2023. At the same time, profit after taxes stood at €2.7 million, up from €1.1 million the previous year.

Scientists, government officials and industry leaders gathered this week at the University of Cyprus for a presentation of a study documenting biodiversity in quarry zones, aiming to reshape policies on sustainable extractive activities.

The event was organised by the Cyprus Aggregates Association, which operates under the umbrella of the Cyprus Chamber of Commerce and Industry (Keve).

According to the chamber, the event “marked the beginning of a new dialogue among the scientific community, industry stakeholders and environmental organisations on sustainable extractive activity“.

The Cyprus Securities and Exchange Commission (CySEC) on Friday officially adopted a series of guidelines issued by the European Securities and Markets Authority (ESMA) concerning crypto-asset service providers (CASPs) operating under the Markets in Crypto-Assets Regulation (MiCA).

In its circular, addressed to all CASPs, CySEC announced the adoption of ESMA’s guidelines on transfer services, reverse solicitation, and portfolio management activities related to crypto-assets.

CySEC explained that the ESMA guidelines on transfer services for crypto-assets were issued on February 26, 2025.

Two teams participating in the Investor Day of the KPMG Startup Innovation Lab (SIL) have secured direct entry into Phase B of the 16th NBG Business Seeds Competition.

The National Bank of Greece (Cyprus) played an active role in the Investor Day event, reaffirming its commitment to supporting innovation and entrepreneurship in Cyprus.

The KPMG SIL Accelerator is a leading investment-oriented acceleration programme dedicated to assisting startups by providing essential resources, expert guidance and access to networks required for their long-term success.

The programme significantly strengthens connections among entrepreneurs, investors and market leaders, with a focus on investment and financial readiness.