President Nikos Christodoulides said the Cyprus economy is expected to grow by around 3.5% in 2026, highlighting government reforms, record employment and falling unemployment.
Christodoulides made the remarks on Monday during a meeting at the Presidential Palace with the Executive Cyprus Employers and Industrialists Federation (OEB).
Government and businesses as partners
Welcoming the OEB delegation, Christodoulides said the government views businesses as partners in its effort to modernise Cyprus and implement bold reforms.
He pointed to the tax reform as an example, saying that reducing taxation had increased disposable income for both households and businesses.
The President also referred to the pension reform currently under way, describing it as another major reform effort. He said the dual objective was to secure more adequate pensions today while ensuring a sustainable Social Insurance Fund for the future.
Employment reaches historic high
Christodoulides welcomed the latest labour market figures published by the Statistical Service, describing them as the strongest since the Labour Force Survey began in 1999.
He said employment had reached a historic high, while unemployment had fallen to levels approaching those recorded in 2008.
The President particularly highlighted the significant decline in youth unemployment, describing this as one of the government’s key objectives.
Growth forecast at around 3.5%
Against this backdrop, and taking into account the economy’s growth trajectory, Christodoulides said the government estimates that Cyprus economy growth will reach around 3.5% in 2026.
He described this as potentially one of the highest growth rates in the eurozone, despite the war in the region and challenges facing major European economies.
The President attributed the performance to the government’s economic policy, multi-level foreign policy and reform programme, while also praising Cypriot businesses for their contribution to the country’s development.
Growth must benefit society
Christodoulides said economic growth should translate into tangible benefits for society, including stronger support for families and higher disposable income.
He said the government was also working to improve citizens’ everyday lives and increase investment in education, healthcare, housing and the welfare state.
The President said further significant measures would be announced in the coming period and thanked the OEB for its cooperation.
He added that the government views businesses as partners and said he looked forward to discussing issues of importance to both businesses and Cypriot society.
Also read: Cyprus’ economy is growing – but are citizens?
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