Business & economy news from the day before

Public debt continued to fall in 2025, reaching its lowest percentage of GDP since 2008, while Cyprus also recorded its fourth consecutive fiscal surplus.

President Nikos Christodoulides on Friday used his social media profile on X to say that public debt had reached its lowest percentage of GDP since 2008, “as a result of our responsible fiscal policy”.

He added that “this is a development that is even more important in the current geopolitical situation”.

According to preliminary data published by the statistical service (Cystat) on March 3, the fiscal surplus reached €939.2 million in 2025, or 2.6 per cent of GDP, down from €1.44 billion, or 4.1 per cent of GDP, in 2024.

However, this was the fourth consecutive year of fiscal surplus and the second-best fiscal performance of the past 17 years, behind only 2024 and slightly below the 2.7 per cent recorded in 2022.

Plans to give very small businesses access to payment accounts with basic features are expected to go before parliament’s plenary, even as ministries, the Central Bank of Cyprus (CBC) and commercial banks continue to raise objections.

The House commerce committee on Thursday closed discussion on two legislative proposals tabled by MPs Costas Costas, Giannakis Gavriel and Andreas Pasiourtidis, after examining them for roughly three years.

The first proposal seeks to bring very small businesses into the framework governing basic payment accounts, while also introducing rules on the transparency and comparability of related bank charges.

The second would prevent banks from refusing a consumer’s application for a basic payment account simply because that person already holds such an account at another credit institution.

Invest Cyprus on Friday presented the results and actions for 2024 and 2025 during its annual general meeting, highlighting the strengthening of Cyprus’ international investment position and the growing contribution of foreign investors to the national economy.

The organisation said the results confirm the significant contribution of foreign direct investment to Cyprus’ economic development and the central role played by Invest Cyprus in attracting international investors and expanding the presence of foreign companies on the island.

According to the presentation, 2024 marked a year of particularly strong performance, with Cyprus recording gross foreign direct investment inflows of €8.5 billion, representing an increase of approximately 60 per cent.

The country also ranked second in the European Union and among the global top ten for foreign direct investment per capita, reinforcing its position as an attractive destination for international capital.

At the same time, €2.6 billion in investment was directed to the technology sector, particularly information and communication technology, further strengthening Cyprus’ rapidly expanding technology ecosystem.

Limassol district local government organisation (EOA) president Yiannis Tsouloftas this week met with shipping deputy minister Marina Hadjimanolis to discuss cooperation opportunities under the European EIT Water initiative.

The meeting took place on Thursday with the participation of Limassol district local government organisation director general Socrates Metaxas, officials of the organisation and representatives of the Shipping Deputy Ministry.

The discussion was held in the context of EIT Water, in which the Limassol district local government organisation participates as a founding member.

EIT Water is the European Union’s new Knowledge and Innovation Community dedicated to water, marine and maritime sectors, created by the European Institute of Innovation and Technology to accelerate solutions addressing environmental, economic and social pressures on Europe’s water systems.

Cyprus recorded the strongest quarterly increase in employment in the European Union in the fourth quarter of 2025, with the employment rate for people aged 20 to 64 rising to 82.1 per cent from 81.5 per cent in the third quarter, according to Eurostat data released on Friday.

That marked an increase of 0.6 percentage points, the biggest among EU member states over the quarter.

Across the EU, the employment rate edged up to 76.3 per cent in the fourth quarter of 2025, from 76.2 per cent in the previous quarter.

Cyprus therefore remained well above the EU average and ranked among the bloc’s top performers.

Only Malta and the Netherlands, both at 83.5 per cent, and Czech Republic at 82.7 per cent, recorded higher employment rates than Cyprus in the final quarter of the year.

Cyprus tourism is facing a split start to the season as Limassol maintains steady visitor flows despite regional tensions, while hoteliers in Famagusta seek emergency state support to counter a wave of cancellations and weak bookings.

In the first instance, visitor numbers in Limassol have so far held up despite the tension in the wider region, with tourism bodies saying Cyprus continues to be regarded as a safe and dependable destination.

That was the main message from a meeting between the Limassol regional tourism board (Etap), the Limassol hoteliers association (Pasyxe) and the association of Cyprus tourist enterprises (Stek).

The meeting reviewed the impact of developments in the wider region on tourism and also discussed ways to further upgrade Limassol’s tourism product.

Cyprus recorded a general government fiscal surplus of €538.8 million in January 2026, equivalent to 1.5 per cent of gross domestic product, according to the Cyprus Statistical Service (Cystat).

The figure represents a slight decline compared with the surplus of €569.3 million, or 1.6 per cent of GDP, recorded in January 2025.

According to the statistical service, total government revenue in January 2026 increased by €14.7 million, representing a rise of 1.0 per cent, reaching €1.55 billion compared with €1.53 billion in the same period of 2025.

The increase was largely supported by strong growth in taxes on income and wealth, which rose by €71.2 million or 12.2 per cent, reaching €657.0 million compared with €585.8 million in January 2025.

In addition, capital transfers increased by €2.3 million, representing a rise of 79.3 per cent, reaching €5.2 million compared with €2.9 million in the corresponding period last year.

Finance Minister Makis Keravnos on Friday said the role of Invest Cyprus remains decisive in establishing Cyprus as an attractive, safe and competitive investment destination, during remarks delivered at the organisation’s annual general meeting.

Speaking during the event, the minister expressed satisfaction with the work carried out by Invest Cyprus in strengthening the country’s international investment profile.

“We will continue our close cooperation with Invest Cyprus so that we bring even better results for our economy, despite the many uncertainties created by negative geopolitical developments,” said Keravnos.

Keravnos emphasised that the finance ministry will maintain strong collaboration with the organisation, underlining the importance of coordinated efforts to support economic growth and stability.

He also referred to the organisation’s initiatives during 2025 aimed at strengthening Cyprus’ relations with key international partners.

Interest rates for new housing loans in Cyprus rose to a peak of 3.41 per cent in January, up from 3.25 per cent during the previous month, though borrowing costs on the island remain lower than the eurozone average.

At the same time, the lowest interest rate for household housing loans stood at 2.50 per cent in January, compared with 2.39 per cent in December 2025.

According to the monthly interest rate statistics published by the Central Bank of Cyprus (CBC) for January 2026, the highest rate for new housing loans to eurozone resident households in euros was offered by the Housing Finance Corporation at 3.41 per cent.

This was followed by the Bank of Cyprus, which offered a 3.23 per cent rate, and Ancoria Bank with 3.10 per cent.

The lowest rate for new housing loans to households was offered by Alpha Bank Cyprus at 2.86 per cent.

Eurogate Container Terminal Limassol (ECTL) and the Eratosthenes Centre of Excellence of the Cyprus University of Technology have signed a memorandum of cooperation aimed at strengthening collaboration and developing joint initiatives.

According to an announcement released on Friday, the agreement was signed as part of the EXCELSIOR Space Industry Day event, organised by the Eratosthenes Centre of Excellence and the EXCELSIOR Teaming Project.

The event sought to strengthen cooperation between the centre and Cyprus’ space and business ecosystem, while promoting the exchange of knowledge and identifying opportunities for joint initiatives in earth observation, space technologies and other areas of mutual interest.

The memorandum establishes a five-year framework for cooperation between the two organisations.

Under the agreement, the partners will work together on joint research and development initiatives, including the preparation of studies and research aimed at technological upgrading and environmental protection.

Cyprus saw approximately 5,000 unemployed people aged 15 to 74 move into employment in the fourth quarter of 2025, according to Eurostat data on labour market flows released on Friday.

That was slightly lower than the approximately 6,000 recorded in the third quarter, pointing to a modest slowdown in the number of people moving from unemployment into work.

Across the European Union, 3.1 million unemployed people found a job between the third and fourth quarters of 2025, equivalent to 22.9 per cent of all those unemployed in the third quarter.

Meanwhile, 6.9m people, representing 51.9 per cent, remained unemployed, while another 3.4m (25.2 per cent) moved out of the labour force.

The Eurostat figures, expressed in thousand persons, show that Cyprus remained a relatively small labour market in absolute terms, as expected, but still recorded continued movement from unemployment into employment at the end of the year.

Building permit activity in Cyprus remained strong in November 2025, according to data released on Friday by the statistical service (Cystat).

A total of 850 permits were authorised in November 2025, with a value of €382.9 million and a total area of 333,400 square metres. These permits provide for the construction of 1,631 dwelling units.

In the first eleven months of 2025, building permits reached 7,340, compared with 6,442 in the January to November 2024 period, marking an increase of 13.9 per cent.

Over the same period, the value of licensed projects rose by 31.8 per cent, total area by 35.3 per cent, and the number of dwelling units by 36.1 per cent.

Residential building permits totalled 5,472 in January to November 2025, up from 4,416 in the corresponding period of 2024.