DBRS Morningstar Confirms Cyprus ‘A’ Credit Rating With Stable Outlook

by THEFUTURE.TEAM

March 16, 2026

Confirmed Credit Rating Amid Economic Resilience

DBRS Morningstar reaffirmed the sovereign credit rating of the Republic of Cyprus at A with a stable outlook. The agency cited the country’s fiscal performance and economic growth outlook. The rating report notes that Cyprus’s real GDP is projected to grow by about 3.8% in 2025. Domestic demand and service exports are expected to support economic activity.

Regional Uncertainty And Its Impact

DBRS Morningstar said regional developments remain a potential risk for the Cypriot economy. The agency noted that rising tensions in the Middle East could affect economic activity in the region. Tourism, a key sector of the Cypriot economy, could be affected if instability continues. Higher global energy prices could also reduce household purchasing power and affect consumption.

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Fiscal Strength And Institutional Reliability

The report highlights Cyprus’s recent fiscal performance. The government has recorded budget surpluses in recent years while public debt has continued to decline. DBRS Morningstar expects government debt to fall below 60% of GDP by 2025. The agency also noted the stability of the banking sector and Cyprus’s institutional framework as an EU member state. However, the report also highlighted structural challenges. These include the small size of the economy, reliance on services, low labour productivity and a current account deficit.

Leadership Confidence In Strategic Economic Policy

Key figures have lent their voices to the nation’s economic credibility. President Nikos Christodoulides underscored that maintaining the A rating amid multifaceted regional challenges is a robust vote of confidence in Cyprus’s economy. Finance Minister Makis Keravnos further emphasized that the nation’s substantial fiscal reserves and proactive economic planning provide a strong buffer against potential external shocks. This strategic outlook is expected to guide Cyprus in leveraging emerging opportunities while managing risks in an uncertain global landscape.

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Cyprus’ Poverty And Social Exclusion Risk Stands At 17.1%

by THEFUTURE.TEAM

October 20, 2026

Cyprus recorded a poverty or social exclusion risk rate of 17.1% in 2025, below the European Union average of 20.9%, according to new Eurostat figures. Across the bloc, however, more than 92 million people continued to face the risk, highlighting persistent social and economic inequalities.

More Than 92 Million People At Risk Across The EU

A total of 92.7 million people across the EU were at risk of poverty or social exclusion in 2025, equivalent to just over one in five residents.

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Cyprus is treated as a single statistical region because of its size, unlike many member states divided into multiple regions for comparison. Its national figure therefore provides an overall picture but does not capture differences between districts or communities.

Regional Gaps Remain Stark Across Europe

The risk varied considerably across the EU, with the highest rates concentrated largely in southern, eastern and outermost regions. In 24 of the 243 regions with available data, at least 31.5% of the population faced poverty or social exclusion.

These regions were located in Spain, Bulgaria, Greece, Italy, France and Romania, as well as Brussels in Belgium and Bremen in north-western Germany.

French Guiana recorded the highest rate, at 54.8%, followed by Calabria in southern Italy at 45.3% and Sicily at 44%. Melilla, a Spanish autonomous city, recorded 43.7%, while Réunion, another French outermost region, stood at 42.3%.

Central Europe Records The Lowest Rates

At the other end of the scale, 24 regions reported poverty or social exclusion risk rates below 13% in 2025. These included five eastern EU capital regions: Bratislava in Slovakia, Warsaw in Poland, Prague in the Czech Republic, Budapest in Hungary and Zagreb in Croatia.

Other regions with low rates were concentrated in northern Italy, the Czech Republic, northern Belgium, Hungary, Poland and Austria, illustrating the uneven distribution of economic security across Europe.

Cyprus Remains Below The EU Average

Cyprus’ rate of 17.1% places it below the EU average, although it remains higher than the levels recorded in the bloc’s lowest-risk regions.

The figures suggest that Cyprus performs relatively well compared with the wider EU, but poverty and social exclusion remain significant challenges across the bloc, affecting more than 92 million people.

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