The Canadian ratings agency DBRS Morningstar has confirmed the positive trajectory of the Cyprus economy. In a report, it reaffirmed the rating of the Republic of Cyprus at “A” with a stable outlook.
According to the agency, the country’s GDP grew by 3.8% in 2025, while public finances show structural surpluses, and public debt declined to 60.6% of GDP last September.
At the same time, however, it warns that the recent escalation of hostilities in the Middle East has increased uncertainty regarding Cyprus’ short-term economic outlook, given the island’s geographical proximity to the region.
This is particularly relevant for the tourism industry, which has been a major driver of growth in recent years, the Canadian agency notes.
In addition, persistently high global energy prices could weaken household purchasing power and, consequently, private consumption, according to the report.
President: Cyprus confirms its credibility amid uncertainty
Commenting on the rating, the President of the Republic, Nikos Christodoulides, said in a post on the platform X that the assessment “constitutes yet another strong vote of confidence in our country’s economy, especially at a time when our region faces multiple challenges.”
“In an international environment of uncertainty, Cyprus confirms its resilience and credibility, maintaining fiscal stability and a steady growth trajectory. We continue with the same responsibility,” the President said.
Finance Minister: Rating agencies continue to trust Cyprus
Finance Minister Makis Keravnos said it is particularly encouraging that, despite global economic instability and the intensification of hostilities in the Middle East—which has increased uncertainty about Cyprus’ short-term outlook due to its geographic location—international rating agencies such as DBRS Morningstar continue to express full confidence in the credibility of the Cypriot economy, based on the strong growth recorded in recent years.
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