Cyprus economic sentiment improves but growth outlook weakens
Cyprus' economic sentiment improved in April 2026, driven by less negative business sentiment in services, but remained below its historical average. The country's economic growth is expected to slow to 2.9% in 2026 due to external pressures and domestic challenges.
Cyprus' economic sentiment improved in April 2026, with the Economic Sentiment Indicator rising by 2.1 points. The improvement was driven by less negative business sentiment in the services sector, particularly due to a significant upward revision in turnover expectations. However, confidence in retail trade and industry sectors declined, and consumer confidence continued to fall. The Economic Uncertainty Indicator remained elevated, highlighting persistent uncertainty. The Economics Research Centre projected that economic growth will slow to 2.9% in 2026 and 3.1% in 2027, due to external pressures, including escalating tensions in the Middle East and a foot-and-mouth disease outbreak. Despite these challenges, strong growth in the fourth quarter of 2025 and robust public finances are expected to cushion the impact.
This content was automatically generated and/or translated by AI. It may contain inaccuracies. Please refer to the original sources for verification.