43% Of Cyprus CEOs Cite Talent Shortages As Top Business Risk

PwC surveyed 77 CEOs in Cyprus, finding that 43% identify skilled labor shortages as a key business risk for the next 12 months. The findings place talent constraints ahead of several other risks and highlight ongoing challenges in hiring employees with the required capabilities.

Critical Talent Gaps And Strategic Concerns

The survey shows that 43% of CEOs rank talent shortages as a primary threat, compared with geopolitical conflicts at 30%, technological change at 22% and cyberattacks at 21%. The data indicate that workforce availability remains a central constraint for business operations. PwC surveyed the latest escalation in the Middle East. Current perceptions of geopolitical risk may therefore be higher than reflected in the results.

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Technology Talent And The AI Imperative

Hiring challenges are more pronounced in artificial intelligence roles, where 45% of CEOs said they are not confident in their ability to recruit qualified specialists. Demand for technical expertise continues to outpace supply in this segment. Global data show a different trend, with 42% of CEOs expressing confidence in their ability to secure AI talent. The gap highlights regional differences in workforce availability and hiring conditions.

Confidence In Leadership And The Demand For Transparency

Executives also reported increased scrutiny of leadership decisions, cited by 13% of respondents. Demand for transparency was identified by 10%, while 9% pointed to concerns related to AI security and responsible use. These responses reflect pressure on management teams to balance operational decisions with governance, risk and communication expectations.

Insights From PwC Cyprus

Philippos Sosielos, CEO of PwC Cyprus, said the findings reflect structural challenges linked to skills, technology and geopolitical developments. He added that the business environment is becoming more complex as multiple risks converge. Sosielos noted that the survey results were recorded before recent geopolitical developments, indicating that current risk levels may be higher.

Long-Term Strategic Imperatives

Companies are expected to address workforce gaps through long-term planning and investment in skills development. Talent strategy is becoming a core component of business resilience. Future responses will depend on how organizations align recruitment, training and technology adoption with changing market conditions.

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Cyprus Banks Urged To Focus On Long-Term Resilience As Profits Remain Strong

by THEFUTURE.TEAM

June 26, 2026

The Cypriot banking sector remains in a strong position, supported by solid capital buffers and overall financial stability, according to speakers at the annual general meeting of the Association of Cyprus Banks. At the same time, government officials and regulators stressed that maintaining this position will require continued discipline and long-term planning.

A Strong Sector, But Not A Complacent One

Finance Minister Makis Keravnos used the meeting to highlight concerns over draft laws recently passed by parliament, which, according to the Ministry of Finance, the Central Bank and the Legal Service, may contain constitutional, legal and institutional issues. Those concerns, he noted, led to presidential referrals and remittals to the Supreme Court.

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Keravnos also said the European Central Bank had been consulted on proposed measures concerning the suspension of foreclosures and the restructuring of loans and guarantees, adding that the ECB had expressed its own concerns.

Profitability Should Reflect Real Economy Lending

While acknowledging that the banking sector remains highly profitable, Keravnos said earnings are expected to reach around €1 billion in 2025, lower than in 2024 as interest-rate conditions gradually normalize.

He said he would prefer bank profitability to rely more on lending to businesses operating in productive sectors and less on the widening of European Central Bank interest-rate spreads.

According to the minister, Cyprus’ return to investment-grade status after 11 years has strengthened the country’s appeal to foreign investors, technology companies and startups. He said this should encourage banks to offer financing that better supports businesses while improving the diversification of their loan portfolios.

The Central Bank’s Warning: Strength Today Is Not A Guarantee Tomorrow

Central Bank Governor Christodoulos Patsalides also warned against complacency, saying the sector’s current strength should not be taken for granted.

“The Cypriot banking sector is strong today. But strength that truly matters is not exhausted by a capital ratio, a profit line or a favorable cycle,” he said.

Patsalides added that lasting resilience depends on institutions remaining strong as conditions change, risks become more complex, and competition evolves. In his view, that requires sufficient capital buffers, adaptable infrastructure and management teams prepared for changing market conditions.

Long-Term Resilience Over Short-Term Gains

Patsalides also stressed that banks should focus on long-term resilience rather than short-term performance. Decisions on dividend policy, capital allocation and the use of resources, he said, should take into account continued investment in technology, operational resilience, human capital and long-term adaptability.

He added that banks able to remain competitive over time will be those that invest early in strengthening their capacity to adapt and respond to future challenges.

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