Cyprus Economic Climate Improves in October 2025, Driven by Service And Construction Momentum

by THEFUTURE.TEAM

November 3, 2025

Overview Of Improved Economic Sentiment

According to findings from the Centre for Economic Research, Cyprus experienced a notable enhancement in its economic climate in October 2025. The Economic Sentiment Indicator registered an increase of 2 points compared to September, reflecting strengthened business confidence primarily driven by improvements in the service and construction sectors.

Boost In Services And Construction Sectors

The services sector recorded positive shifts as business leaders maintained optimistic expectations for both recent and forthcoming months. In parallel, the construction industry benefited from favorable assessments of ongoing projects and promising employment prospects, contributing significantly to stronger economic sentiment.

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Challenges In Retail And Manufacturing

Contrarily, the retail sector faced a downturn marked by reduced sales and increased inventories, with businesses forecasting softer sales figures in the upcoming quarter. Similarly, the manufacturing sector showed signs of deceleration as current orders received less favorable evaluations and production forecasts for the coming months were adjusted downward.

Consumer Caution And Recalibrated Expectations

Adding to the mixed economic picture, consumer sentiment declined in October. Households reassessed their financial outlooks with increased caution, leading to a pullback from significant purchases and a tempered forecast for the country’s economic trajectory.

Lower Levels Of Economic Uncertainty

Further supporting the overall improvement, the Economic Uncertainty Index registered a decline, indicative of diminished business uncertainty across nearly all sectors. Although the manufacturing domain experienced a slight uptick in uncertainty, consumer apprehension remained marginal and well-contained across various income groups.

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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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