- Despite higher energy prices and lower tourism arrivals, Cyprus's economy remains resilient, with strong growth and fundamentals.
- Strong fiscal performance and falling public debt create room for a gradual and growth-friendly fiscal easing-focused on high-quality investment and efficiency gains. Financial sector soundness should be preserved and credit deepening supported.
- Sustaining strong growth requires reforms to boost productivity and investment, including through a more efficient judiciary, a better‑skilled workforce, wider use of digital technologies, and progress on energy sector reforms.
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