Middle East conflict creates economic risks for Greece and Cyprus
Greece and Cyprus are exposed to economic risks due to the Middle East conflict, which is affecting tourism and shipping in both countries. The conflict is expected to hit tourism, a key driver of growth in both economies, with Cyprus being more vulnerable due to its proximity to the conflict zone.
The Middle East conflict is creating economic risks for Greece and Cyprus. Tourism and shipping play a significant role in both economies. Disruptions to shipping and air travel are raising costs and affecting freight rates and tourist flows. Cyprus is more vulnerable due to its proximity to the conflict zone. Banking systems in both countries remain supported by strong profitability and solid capital buffers. The conflict is expected to hit tourism, a key driver of growth in both economies. Real GDP growth for 2026 has been revised down in both countries.
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