The Employers and Industrialists Federation (OEV) reported growth across Cyprus’ services sector in 2025, with increases recorded in tourism, professional services and administrative activities. Data show continued expansion across multiple sub-sectors, reinforcing the role of services in economic output and employment.

Service Sector Leadership

Accommodation and food services grew by 9.5%, while administrative and support activities increased by 7.4%. Professional, scientific and technical activities rose by 4.6%, followed by information and communication at 4.3%. Transport and storage recorded growth of 2.8%, while real estate activity increased by 0.4%. These figures indicate broad-based expansion across service industries.

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A Remarkable Tourism Surge

Tourist arrivals reached 4,534,073 in 2025, marking a 12.2% increase year-on-year. December arrivals totaled 156,959, up 18% compared with the same period a year earlier. Tourism continues to support revenue generation and seasonal demand across the economy. Growth in visitor numbers contributes to activity in hospitality and related sectors.

Driving Digital Transformation

OEV is supporting digital adoption through initiatives such as the DiGiNN Cyprus Digital Innovation Hub. The program focuses on improving business processes, skills development and technology integration. Additional efforts include the establishment of a Digital Transformation and Innovation Committee and international engagement through business missions. These actions support the adoption of digital tools across sectors.

Resilient Shipping Sector

Shipping accounted for about 7% of Cyprus’s GDP in 2025, remaining a key component of the economy. The Cyprus Registry recorded its highest tonnage in 20 years, with an increase of nearly 20%. Fleet growth strengthens Cyprus’ position within European Union shipping registries and global maritime markets. The sector continues to contribute to economic stability.

Strengthening The Economic Foundation

OEV is organizing conferences, workshops and exhibitions to support business development across sectors. These initiatives focus on improving operational practices and industry collaboration. Continued investment in services and digital infrastructure is expected to support economic performance.

Anthropic changed pricing for its Claude Code service, introducing pay-as-you-go charges for usage through third-party tools. The update took effect on April 4 and removes external tool usage from existing subscription limits.

Strategic Realignment Of Subscription Models

New pricing applies to third-party integrations such as OpenClaw, with plans to extend the policy across all external tools. Subscription plans will continue to cover direct usage but exclude activity routed through third-party software. The company said the change addresses usage patterns not accounted for in the original pricing structure. Adjustments aim to manage demand and maintain service performance.

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Engineering Constraints And Community Impact

Boris Cherny, Head of Claude Code at Anthropic, said the decision reflects engineering constraints related to high-volume usage through external tools. He added that the existing subscription model was not designed for these workloads. Anthropic said refunds remain available for affected users. Continued support for open source development remains part of the company’s approach.

Competitive Dynamics And Industry Shifts

Peter Steinberger, creator of OpenClaw, said discussions with Anthropic delayed the rollout by about one week. He noted concerns about restrictions on third-party usage alongside feature development. Competition across AI development platforms is increasing, particularly around pricing models and developer access. Companies are adjusting their positioning as demand grows.

Broader Implications For The AI Market

Companies in the sector are adjusting pricing and product strategies as demand for AI tools increases. Focus is shifting toward enterprise use cases and infrastructure scalability. Future developments will depend on how providers balance pricing, performance and developer ecosystem support.

Introduction

Hotels in the Ammochostos region are proceeding with planned openings despite weaker bookings linked to regional tensions. Operators expect higher occupancy during the Easter period, supported by packages targeting domestic travelers.

Hotel Openings And Adjusted Operational Timelines

Panagiotis Konstantinou, President of PASYXE Ammochostos, said 65 hotels in Ayia Napa and Protaras are already operating, with the remaining properties scheduled to open by the end of the month. A total of 252 accommodations are expected to be fully operational by the end of April. Bookings are down by about 42%, although cancellations have decreased, indicating potential stabilization in demand. Hoteliers are introducing local tourism offers for Easter to increase occupancy in the coming weeks.

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Enhanced Local Attractions And Seasonal Appeal

Restaurants and other tourism businesses have also resumed operations across the region. Municipalities, including Ayia Napa and Paralimni-Deryneia, are preparing for increased visitor activity. George Tofinis, President of ETAP Ammochostos, said the region offers a mix of cultural and outdoor activities, including religious events and coastal excursions. Spring conditions support outdoor tourism beyond the peak summer season.

Sporting Events And Strategic Tourism Development

Tourism authorities are promoting a series of sporting events to support seasonal demand. Scheduled events include a football academy tournament in early April, the Cyprus Road Race Grand Prix in Protaras and the International Open Water Swimming Cup on April 18–19, 2026. These events are expected to attract participants and visitors, contributing to early-season tourism activity. Event-driven demand remains a key component of regional tourism strategy.

Rising energy costs are increasing pressure on global supply chains, affecting transportation, food production and retail pricing. Higher fuel and electricity costs are raising expenses for logistics, processing and storage, with potential spillover into consumer prices in the coming months.

Energy Supply Challenges In A Disrupted Landscape

Transport and production systems depend on a stable fuel supply and electricity availability. Recent disruptions in energy flows have not yet fully appeared in economic data but may affect supply conditions in the near term. Ongoing tensions involving Iran continue to influence energy prices, adding uncertainty for producers and distributors. Market volatility remains a key factor in cost projections.

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Inflationary Pressures On Agricultural And Processed Goods

Data from the national statistics office show rising prices across agricultural products and related goods. Cost increases are extending beyond raw inputs to livestock and processed food items. Additional pressures may emerge from earlier disruptions, including the dengue fever outbreak in Cyprus. These factors are expected to affect pricing gradually.

Divergent Trends Across Economic Sectors

Food and non-alcoholic beverage prices increased by 6.16% year-on-year in March. Housing, water, electricity, gas and fuels declined by 1.90%, while electricity and water dropped by 12.94%. Petroleum products increased by 2.26%, reflecting recent market changes. Restaurant and hotel services rose by 3.28%, education by 3.71%, and recreation by 2.94%. Personal care and related goods increased by 1.18%, while media and communications declined by 1.83%. Apparel and footwear dropped by 5.78%, and transport prices remained broadly stable with a 0.11% increase.

Outlook

Energy costs and supply conditions will continue to influence pricing across sectors. Future developments will depend on energy market stability and broader economic trends. Changes in input costs and demand levels will determine the extent of price adjustments in the coming months.

Mikko Hyppönen, Chief Research Officer at Sensofusion, said cybersecurity principles used to detect malware are now being applied to counter drone threats. He presented the concept during a cybersecurity conference, comparing threat detection to pattern recognition systems used in both software and radio signals.

From Early Viruses To A Beacon In Malware Defense

Hyppönen began his career in the late 1980s, when computer threats were primarily spread through floppy disks and categorized as viruses or trojans. Early work included analyzing malware samples and reverse engineering software protections. During his time at F-Secure, formerly Data Fellows, he examined thousands of malware variants as threats evolved. Incidents such as the ILOVEYOU virus, which infected more than 10 million systems, marked a shift toward large-scale attacks.

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Modern Cybersecurity And The New Era Of Drone Warfare

The cybersecurity sector has grown into a global industry valued at approximately $250 billion, with increasing investment in system protection and threat detection. At the same time, new risks have emerged through the use of drones in military and civilian contexts. Hyppönen now focuses on counter-drone technologies at Sensofusion, applying cybersecurity methods to detect and disrupt unmanned aerial systems. Use of drones in conflicts, including the war in Ukraine, has accelerated development in this area.

Counters And Cyberattacks: The Convergence Of Old And New Threats

Detection systems for drones rely on identifying radio frequency patterns, similar to how malware is identified through digital signatures. Analysts use recorded signal data to classify and respond to potential threats. Hyppönen said cyber threats have shifted toward criminal and state-linked activity, requiring continuous adaptation of defense systems. He added that similar approaches are now used to address risks from autonomous aerial technologies.

Overview Of The Breach

CERT-EU confirmed a cyberattack on European Commission systems that resulted in the extraction of about 92 GB of data from an Amazon Web Services account. The breach affected cloud infrastructure linked to EU institutional platforms and raised concerns about the exposure of sensitive information.

Incident Details And Affected Infrastructure

Attackers gained access using a secret API key associated with the Commission’s AWS environment. The key was exposed after a compromised version of the open source security tool Trivy was downloaded. Access extended beyond AWS to infrastructure supporting the Europa.eu platform, which hosts EU institutional websites and publications. The breach enabled data extraction across multiple systems.

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Attribution And The Complexity Of Cyber Threats

CERT-EU attributed the incident to TeamPCP, with links to activity associated with the ShinyHunters group. Reports indicate that data obtained in earlier operations may have been redistributed or leaked. At least 29 EU entities may be affected, with potential exposure of email communications and internal data. The case reflects increasing coordination between cybercriminal groups.

Strategic Implications And Industry Response

Security researchers have linked TeamPCP to activities including ransomware and crypto-mining operations. Compromised access to development tools and keys can enable broader system intrusion. The incident highlights risks associated with supply chain vulnerabilities, particularly in open source software. Cloud environments remain a key target due to the volume of stored data.

Conclusion And Ongoing Analysis

The European Commission has not yet issued a full response and is expected to provide further details. CERT-EU has contacted affected entities following the breach. Approximately 52,000 files have already appeared online, including automated messages and user-related communications. Further analysis will determine the full scope of the incident.

The Electricity Authority of Cyprus started installing smart meters across multiple regions, requiring temporary power interruptions of about 20 minutes during each upgrade. Deployment is part of a broader effort to modernise the electricity network and improve energy consumption monitoring.

Upgrading The Nation’s Energy Grid

Installations in Nicosia cover residential areas east of Yiannos Kranidiotis Avenue, from Ayios Georgios Street to Alexander The Great Avenue. Additional works extend along Ayios Georgios and Demetris Stavrou Avenues in Latsia. These upgrades aim to improve grid reliability and enable more accurate measurement of electricity usage. Focus remains on areas with high residential demand.

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Targeted Rollouts In Key Urban Centers

Works extend along both sides of the Nicosia–Limassol motorway, from Rizokarpaso Street and Eleftherios Venizelos Street to the Dhali industrial area. Areas including Helioupolis, Kallithea and the municipality of Tseri are included in the rollout. Coverage across these zones expands access to smart metering in densely populated corridors. This approach supports broader network integration.

Broadening The Network In Limassol And Larnaca

Installations in Limassol are concentrated within areas bounded by October 28th Avenue and Archbishop Makarios III Avenue, including Grivas Digenis, Gladstone and Anexartisia streets. In Larnaca, the rollout includes the Oroklini area. Expansion across these locations increases the share of households connected to the upgraded system. Deployment follows a phased schedule.

Expanding Benefits Across Famagusta And Paphos

Dherynia in the Famagusta district is included in the rollout, with installations planned in central areas and along Archbishop Makarios III and Stadiou Avenues. In Paphos, works cover areas in Yeroskipou between Archbishop Makarios III Avenue and Evagoras Pallikarides Street. Further expansion across districts supports nationwide coverage of smart meters. Implementation will depend on installation timelines and rollout progress.

Tesla stopped accepting custom orders for the Model S and Model X, leaving only remaining inventory available for purchase, CEO Elon Musk said. The decision follows declining sales of the two models, which are now grouped under “other models” alongside the Cybertruck.

A Look Back

Tesla introduced the Model S in 2012, followed by the Model X in 2015, positioning both as premium electric vehicles. The models contributed to the early adoption of EVs and helped establish Tesla’s presence in the market. Combined sales peaked at 101,312 units in 2017 and declined to 50,850 units in 2025. By comparison, Tesla delivered 1.63 million vehicles globally last year, driven primarily by Model 3 and Model Y.

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Market Shift Toward High-Volume Models

Demand has shifted toward lower-cost, higher-volume vehicles, with Model 3 and Model Y accounting for the majority of Tesla’s deliveries. These models continue to support the company’s global sales volumes. Recent data show slowing growth, with Tesla reporting a second consecutive annual decline in deliveries. Pricing adjustments and new variants have not fully offset increased competition.

Cybercab Risks

Tesla is increasing its focus on autonomous vehicles and artificial intelligence, including the development of the Cybercab and the Optimus robot. Production of Model S and Model X at the Fremont facility is expected to wind down. The Cybercab is designed without traditional controls such as a steering wheel or pedals, creating regulatory challenges under current U.S. safety standards. No exemption from these requirements has been publicly confirmed.

Reliance on Tesla’s Full Self-Driving software presents additional risks, as large-scale deployment remains unproven. Competitors such as Zoox, owned by Amazon, have secured regulatory exemptions for driverless vehicle testing.

Strategic Shift Toward AI

Elon Musk, CEO of Tesla, said autonomous driving will account for the majority of future miles traveled. The company is increasing investment in AI as part of its long-term strategy. Execution will depend on regulatory approval, software performance and adoption of autonomous systems.

Anthropic acquired biotech AI startup Coefficient Bio in a deal valued at approximately $400 million in stock, according to people familiar with the matter. Sources confirmed the transaction, although detailed financial terms were not publicly disclosed.

Deepening Forays Into Healthcare And Life Sciences

The acquisition follows Anthropic’s earlier launch of Claude for Life Sciences, a tool designed to support scientific research and drug discovery. The deal expands the company’s activity in healthcare and biotechnology. Anthropic is increasing its focus on applying AI models to scientific workflows, including data analysis and experimental design. Expansion into life sciences reflects broader industry trends.

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Transforming Computational Drug Discovery

Coefficient Bio was founded eight months ago by Samuel Stanton and Nathan C. Frey, both former researchers at Genentech’s Prescient Design group. The company focused on applying AI to drug discovery and biological research processes. Its technology aims to improve efficiency in identifying drug candidates and analyzing biological data. Early-stage development reflects growing interest in AI-driven research tools.

Strategic Talent And Expertise Integration

Around 10 employees from Coefficient Bio will join Anthropic following the acquisition, strengthening its health and life sciences team. The group will contribute to the development of AI models for scientific and medical applications. Access to specialized talent supports the expansion of capabilities in drug discovery and biological research.

Industry Context And Outlook

Investment in AI for drug discovery has increased as companies seek to reduce development timelines and costs. Large technology firms and startups are expanding activity in this area. Further developments will depend on how effectively Anthropic integrates the team and advances its life sciences strategy.

Inaugural Voyage Sets A New Benchmark

Yesterday marked a pivotal moment at the Port of Limassol as the Marella Discovery II, operated by Marella Cruises, embarked on its first cruise. The event was attended by Simon Pitout, CEO of DP World Limassol, who emphasised the port’s growing significance as a strategic hub in the Eastern Mediterranean region.

Fly & Cruise: Elevating Travel Experiences

The launch also underscores the continued success of the Fly & Cruise service offered by TUI Group in Cyprus for the second consecutive year. This innovative travel solution packages flight bookings with a cruise vacation, with Limassol serving as the home port throughout the 2026 tourist season. Passengers fly into Larnaca or Paphos and seamlessly transfer to the Limassol cruise terminal, further enhancing the island’s appeal as a prime travel destination.

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Strategic Insights And Industry Impact

Simon Pitout, CEO of DP World Limassol, said the selection of Limassol as a home port reflects operational capacity and connectivity with Cyprus’ aviation and tourism infrastructure. He added that cruise activity in the region continues to expand. Industry activity indicates sustained demand for cruise services in the Eastern Mediterranean. Port infrastructure and flight connections remain key factors in supporting growth.

Robust Itinerary And Future Prospects

DP World Limassol is scheduled to host Marella Discovery II 26 times between April and October. The ship’s itinerary includes stops in Kusadasi, Mykonos, Piraeus, Souda in Crete and Rhodes. Operations will continue from Limassol as a central hub for regional routes during the season. Cruise schedules and passenger volumes will determine further expansion.