Cyprus’s Finance Minister, Marios Keravnos, has sought to reassure the public that the island’s economy continues to show resilience, despite growing regional instability. He emphasised that, so far, no significant negative impact has been recorded on key sectors such as tourism or inflation.
Prioritising safety and economic resilience
Speaking on state radio on Wednesday morning, Keravnos highlighted that the government’s primary concern remains the safety of the population, followed by maintaining economic stability. “The government’s priority is first of all the safety of our citizens and, secondly, to preserve the economy’s resilience to cope with any potential impact,” he said.
Keravnos noted that while Cyprus is not directly involved in the conflict, its geographical location requires vigilance and preemptive planning.
Duration of crisis will shape impact
According to the Finance Minister, the key factor is how long the regional crisis continues. Prolonged instability could create ripple effects globally, with energy prices representing the first area of concern. A rise in oil prices could trigger inflationary pressures, though current near-zero inflation in Cyprus allows for manageable increases of 1–1.5%.
Tourism remains under close observation, with preliminary indicators showing cautious bookings from European markets. Keravnos reassured that no serious negative effects have yet been observed and urged patience.
Fiscal “cushion” protects economy
Keravnos highlighted that Cyprus’s preventive fiscal policies have created substantial surpluses and reserves. This fiscal “cushion” ensures the government can intervene if necessary without threatening economic stability or social cohesion.
He also referenced Cyprus’s outward-looking foreign policy, noting that support from the European Union and Greece enhances national security. “From a safety perspective, there is no cause for concern,” he said.
Labour unions urged patience
Addressing statements from trade unions PEO and SEK, which called for workers to be protected from the crisis’s economic burden and requested a convening of the Advisory Economic Committee, Keravnos described such demands as premature.
He stressed that government policies support society as a whole and have already safeguarded workers and social cohesion. On the request for a committee meeting, he noted: “Everything in its time,” underscoring that the Ministry of Finance continues to assess developments daily.
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