Government spokesman Konstantinos Letymbiotis on Tuesday welcomed the European Commission’s autumn economic forecast for Cyprus, which revised the country’s economic growth for 2025 upwards.

“The findings of the European Commission’s autumn economic forecast for Cyprus constitute a clear political confirmation that our country is on a steady path of progress, credibility and resilient growth, at a time when Europe and the international economy are being tested by uncertainty, geopolitical tensions and shifting balances,” he told reporters during a media briefing at the Press and Information Office.

The forecasts revised upwards the projected growth rate, raising the 2025 estimate to 3.4 per cent from 3.0 per cent and the 2026 estimate to 2.6 per cent from 2.5 per cent.

This places Cyprus third in growth performance in the euro area with a margin approaching two percentage points above the euro area and EU averages.

“This performance is the result of systematic planning, prudent fiscal management and targeted reforms aimed at structurally strengthening the country’s economic model,” the spokesman said.

The European Commission’s report stressed that strong growth is driven mainly by domestic demand and rising investment, particularly in view of the completion of Recovery and Resilience Plan projects by 2026, as well as by the continued momentum of export services.

At the same time, headline inflation is expected to ease to 0.9 per cent in 2025 and to approach 2 per cent by the end of the forecast horizon.

Moreover, he mentioned that the labour market has seen unemployment forecast to fall to 4.7 per cent in 2025 and 4.3 per cent in 2027, “a development that translates into real employment opportunities”.

Public finances remain on a positive path with stable surpluses projected to range from 3.3 per cent of GDP in 2025 to 3.2 per cent in 2027.

“The most important indicator for state credibility, public debt, is expected to fall to 56.4 per cent in 2025, 51.0 per cent in 2026 and 45.7 per cent in 2027, creating a clear strategic margin of national economic security,” he stated.

“These developments together form a unified and strong narrative of international confidence, national seriousness and economic self-assurance, and Cyprus can and must continue to build on this foundation through responsibility, reform and openness,” he added.

However, Letymbiotis said that “the progress recorded does not justify complacency but confirms that the vision for a sustainable, competitive, socially just and investment-friendly economy is achievable as long as the country avoids practices that jeopardise its established credibility“.

“Economic stability and growth translate into conditions that improve and enhance citizens’ wellbeing, particularly when they serve as drivers that benefit society as a whole, when paired with reforms that deliver tangible results and when they act as a barrier to the temptations of irresponsibility or easy solutions,” he added.

The spokesman also said that “Cyprus has shown that it can deliver results in practice rather than in theory, and this strategic course is the clearest response to those who continue to invest in doubt instead of creation”.

He further stressed that “the country cannot and will not turn back, and with steady political will, consistency and confidence in the abilities of the nation and its people”.

Additionally, he said that “Cyprus can continue to serve as an example of European responsibility, development momentum and national pride”.

“From the day the government took office I do not recall the opposition approaching the government with composure and critical thinking,” he said, in response to criticism from Akel.

Akel has argued that the government is “deaf to the issue of energy costs” and that it “promotes coercive bills along with concerns regarding tax reform”.

“Reading Akel’s announcements someone might think that under Akel’s governance Cyprus had natural gas and we removed it, that there was a rapid penetration of renewable energy sources and we removed it,” he said.

“While many steps in implementing our energy strategy should have been taken much earlier, this government remains determined, and our strategic planning continues, responding not to the opposition, but to society, citizens, and Cypriot households,” Letymbiotis explained.

“I do not understand how an issue of coercive bills can arise in Parliament and it is here that each person must assume their responsibilities and rise to the occasion,” he added.

Regarding tax reform, he said that “it is a major reform that after twenty years is necessary”.

“Anyone who believes that a series of six bills cannot be discussed within two months must address the people, because these bills have been presented, have undergone public consultation, the longest consultation ever conducted under the procedures, and we welcome the fact that the Finance Committee has placed it as a priority,” the spokesman continued.

“The government is fully available to assist the committee so that the target of January 1 can be met,” he stressed.

“This effort is directed not towards the government but towards citizens, households and businesses which will see the benefit of the reform’s implementation,” Letymbiotis concluded.