Cyprus Economy Poised for Robust 2.9 Percent Growth in 2025, IMF Forecasts

by THEFUTURE.TEAM

October 15, 2025

IMF Report Endorses Cyprus’s Economic Resilience

Finance Minister Makis Keravnos welcomed the International Monetary Fund’s latest forecasts as a clear affirmation of Cyprus’s prudent fiscal strategy and continued economic resilience. Speaking at the Presidential Palace following a cabinet meeting, the minister noted that the IMF’s conservative projections actually underscore the nation’s strong economic fundamentals.

Conservative Projections Validate Government Estimates

Keravnos highlighted that IMF forecasts, typically cautious by nature, confirm the government’s optimistic outlook, with the fund now projecting a 2.9 percent GDP growth rate in 2025, slightly above previous estimates. The IMF also anticipates a sustained performance into 2026 with a 2.8 percent expansion, reflecting the country’s commitment to fiscal discipline and stable growth amid global economic uncertainties.

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Favorable Outlook on Inflation and Employment

The latest IMF forecast projects an inflation decline to a mere 0.7 percent in 2025—the lowest rate in the euro area—before modestly rising to 1.3 percent in 2026. Moreover, unemployment is expected to remain robustly low, around 4.5 percent, with fiscal surpluses averaging approximately 3 percent of GDP over the period from 2025 to 2028. These figures underpin the governmental claim that the country’s measured policies are successfully weathering global headwinds.

Global Perspectives and Domestic Strength

While the IMF warns of a slight slowdown in global economic growth—from 3.3 percent in 2024 to 3.1 percent by 2026—the report positions Cyprus among the euro area’s more stable economies. The nation’s domestic demand and thriving services sector continue to buoy growth, even as challenges such as expanding current account deficits, driven by increased imports and heightened service activity, loom on the horizon.

Strategic Implications for Policy and Investment

The IMF’s favorable economic outlook for Cyprus lends credence to both governmental forecasts and the strategic initiatives that have been instrumental in steering the economy through turbulent times. This robust projection not only reassures investors of Cyprus’s economic trajectory but also reinforces the importance of disciplined policy measures in sustaining long-term growth, especially amidst global economic volatility.

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Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

by THEFUTURE.TEAM

February 17, 2026

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

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The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.

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