Young people in Cyprus have a relatively high employment rate, but they leave the parental home later than the EU average, according to Eurostat data.

Cypriots left home at an average age of 27 in 2025, compared with 26.3 years across the EU. At the same time, 72.3% of people aged 20 to 29 in Cyprus were employed, well above the EU average of 65.5%.

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Strong Employment Does Not Mean Early Independence

Only nine countries recorded higher youth employment rates than Cyprus. Iceland led at 85.3%, followed by the Netherlands at 84%, Malta at 82.1%, Switzerland at 78.3% and Germany at 77%.

Norway recorded 76.5%, Ireland 76.1%, Denmark 74.8% and Austria 74.6%. Eurostat said countries where young people leave home earlier generally tend to have higher youth employment rates.

Southern Europe Sees Later Moves

Finland had the lowest average age for leaving the parental home at 21.4 years, followed by Denmark at 21.8 and Estonia and Lithuania at 22.7. Croatia recorded the highest average at 31.5 years, followed by Greece and Slovakia at 30.9. Spain and Italy both stood at 30.2 years.

Across the EU, the average has remained close to 26 since 2002, rising only slightly from 26.2 years in 2024 to 26.3 years in 2025.

Cyprus Labour Market Is Cooling

The figures come as Cyprus’ labor market shows some signs of easing, although demand for workers remains relatively strong by European standards.

Separate Eurostat data showed Cyprus had the EU’s largest annual decline in its job vacancy rate in the second quarter of 2026. The rate fell to 2.6% from 3.3% a year earlier, but remained above the EU average of 2.0% and the euro area average of 2.1%.

Cost Of Living Remains A Factor

Housing and other living costs can also affect how quickly young workers establish independent households. Eurostat reported that Cyprus’ household consumption price level was 89.2% of the EU average in 2025.

A relatively lower overall price level does not eliminate affordability pressures for people on modest incomes. For younger workers, the issue can be whether wages are sufficient to cover rent, utilities, food and other basic expenses.

Cyprus therefore combines relatively high youth employment with a later transition to independent living, suggesting that access to work and the ability to afford a separate household do not always move together.

Cyprus’ job vacancy rate fell to 2.6% of total employment and vacancies in the second quarter of 2026, down from 2.8% in the previous quarter and 3.3% a year earlier, according to the Statistical Service of Cyprus. The decline points to some easing in demand for workers after a period of tighter labor market conditions.

Hospitality Leads The Market For Open Positions

Accommodation and food service activities recorded the highest vacancy rate at 4.6%, with open positions accounting for that share of total employment and vacancies. Strong demand for workers in the sector reflects the importance of staffing to Cyprus’ tourism and hospitality industry.

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Transportation and storage and administrative and support service activities followed, each with a vacancy rate of 3.5%. Relatively high rates in these sectors indicate that demand for workers remains elevated despite the broader decline.

What The Numbers Suggest

A lower vacancy rate may signal a gradual cooling in hiring demand, potentially easing recruitment pressure for employers. For policymakers, the figures also provide a useful measure of how demand for workers is changing across different parts of the economy.

Sector differences remain significant, particularly in hospitality and logistics, where staffing needs are closely linked to seasonal activity and broader economic conditions. Despite the overall decline, relatively high vacancy rates suggest that finding workers remains a challenge in parts of the labor market.

Logicom’s distribution sales rose 0.4% in the first half of 2026, supported by stronger activity in Cyprus, Greece and Jordan. This was partly offset by a 14% decline in software and integrated IT solutions, mainly due to weaker sales in Cyprus and Greece.

Reported sales fell 16.5% to €409.11 million from €489.95 million. Under IFRS 15, Logicom acts as an agent in some software license and cloud transactions, meaning only gross profit is recognized as sales.

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Despite lower reported sales, gross profit increased to €45.12 million from €43.83 million. Gross margin on reported sales improved to 11.0% from 8.9%, reflecting a stronger sales mix.

Lower Costs Support Results

Administrative expenses fell 5.2% to €29.51 million, while expected credit losses declined to €80,818 from €164,454. Finance costs dropped 41.2% to €2.84 million, mainly due to lower borrowing and reduced dollar and euro borrowing rates.

Other income fell to €4.42 million from €5.82 million, partly because the previous year included €762,462 in insurance compensation received by Logicom Italia. Foreign exchange movements also resulted in a €710,123 loss, compared with a €2.43 million gain a year earlier.

Acquisition Adds €8.88 Million In Negative Goodwill

The first-half results included €8.88 million in negative goodwill from Logicom’s acquisition of AGI-Cypre Property 45 Limited on Jan. 29, 2026.

Logicom acquired a 31.8% stake through Najada Holdings Limited and a further 26.3% through Demetra Holdings Plc. The negative goodwill reflects the difference between the purchase price and the fair value of the acquired company’s net assets.

Debt Declines As Outlook Remains Focused On Growth

Cash and cash equivalents, after bank overdrafts, stood at €417.77 million at the end of June, compared with €443.19 million at the end of 2025. Short-term loans fell to €66.77 million from €78.43 million, while long-term loans declined to €5.62 million from €17.23 million.

Logicom said ongoing conflicts in the Middle East and Europe continued to create uncertainty. Still, profitability from ordinary activities improved, supported by higher gross profit, lower administrative and credit costs, and lower taxation.

Management said its 2026 priorities remain expanding in existing and new markets while maintaining the group’s financial position. The company said first-half results were in line with board expectations.

Cyprus and the United Kingdom have agreed on the next phase of maritime cooperation following talks in London between Cyprus Shipping Deputy Minister Marina Hadjimanolis and her British counterpart, Keir Mather, according to the Cyprus News Agency.

From Agreement To Implementation

The talks focused on implementing the Memorandum of Understanding signed in February 2023 between the Cyprus Shipping Deputy Ministry and the UK Department for Transport. Discussions covered practical cooperation as well as broader challenges facing global shipping and opportunities to strengthen bilateral ties.

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The agreement covers maritime safety and security, decarbonization, ship-source pollution, seafarers’ employment and welfare, maritime education and training, research and innovation, digitalization and cybersecurity.

Cooperation Across Key Maritime Priorities

The framework also provides for cooperation on piracy, fraudulent ship registrations and shipping-related sanctions, as well as engagement through international bodies such as the International Maritime Organization.

Potential measures include expert exchanges, technical workshops, training, technical assistance and sharing best practices. The private sector could also play a larger role in developing cooperation between the two maritime industries.

Seafarer welfare and safety and the green transition were identified as initial priorities. A UK government review published in December 2024 also referred to plans to exchange expertise on implementing the Maritime Labour Convention 2006.

Shipping In A Wider Economic Context

Mather, Parliamentary Under-Secretary of State for Aviation, Maritime and Logistics, oversees maritime policy, freight and borders, international transport, security and resilience.

Hadjimanolis and Mather also took part in the 18th Annual Capital Link Shipping & Marine Services Forum alongside TEN founder and CEO Nikolas Tsakos. The roundtable covered trade, regulation and maritime competitiveness, including tariffs, sanctions, supply-chain resilience and the role of regulators.

Cyprus Seeks Deeper Industry Links

During her London visit, Hadjimanolis also met Foresight Group founder and chairman Ravi K. Mehrotra to discuss opportunities for greater cooperation in maritime and shipping activities.

Founded by Mehrotra in 1984 as a shipping company, Foresight has since expanded into offshore drilling and infrastructure. Its shipping business is now focused on LPG transportation, with a target of 25 modern very large gas carriers by 2034.

The EU’s digital identity wallet is moving toward wider adoption, but member states are progressing at different speeds as businesses and banks prepare for mandatory acceptance.

A Wallet For Everyday Identity

The free wallet is designed to store essential documents, including national ID cards, driving licenses, diplomas, health insurance information and bank details. EU officials say its main safeguards are selective disclosure, unlinkability and issuer-blindness, allowing users to share only the information required for a transaction while limiting third-party tracking.

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Use of the wallet will remain optional. Citizens can continue using paper documents and existing identification methods, allowing the EU to present the system as a convenience rather than a requirement.

Adoption Remains Uneven

Italy has emerged as the frontrunner, with nearly 8 million monthly users. Germany is not expected to launch until January 2027, while the Netherlands has pushed its rollout to late 2027 after a pilot attracted only 57 users.

Bulgaria is still working on the legislation needed for implementation. The uneven progress reflects differences in national infrastructure, political support and public trust, all of which could affect the wallet’s cross-border adoption.

Businesses And Banks Face Deadlines

Businesses across the EU will be required to accept the wallet by Dec. 24, 2027. Banks face an earlier deadline of July 2027 because of anti-money-laundering requirements and their role in identity verification and risk controls.

Digital authentication could affect areas such as customer onboarding, transaction monitoring and fraud prevention, making implementation particularly significant for financial institutions.

Privacy Concerns Remain

Digital rights advocates have raised concerns about the system’s privacy safeguards. EDRi has warned about draft rules that could require facial recognition and weaken certain protections.

As the rollout progresses, policymakers will need to balance security and usability with privacy safeguards in a system designed for everyday use across the EU.

Labor costs in Cyprus rose 3.8% year on year in the second quarter of 2026, according to provisional figures from the Statistical Service, or Cystat.

The increase accelerated slightly from 3.4% in the first quarter and exceeded the 3.7% rise recorded a year earlier, pointing to continued pressure on employers’ staffing costs.

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Wages And Non-Wage Costs Both Rise

Wages and salaries per hour worked increased 3.9% from a year earlier, while non-wage costs rose 3.6%. Both rates were higher than in the first quarter, when wage costs increased 3.4% and non-wage costs 3%.

On an unadjusted basis, the total labor cost index rose to 121.87 in the second quarter, from 119.43 in the previous quarter and 117.38 a year earlier, using 2020 as the base year.

The wages and salaries index reached 122.20, compared with 119.79 in the first quarter and 117.64 a year earlier. The non-wage cost index rose to 120.48 from 117.92 and 116.33, respectively.

Quarterly Growth Also Picks Up

After seasonal adjustment, total hourly labor costs increased 1% from the previous quarter. Wages and salaries also rose 1%, while non-wage costs increased 0.9%.

That was faster than the quarterly growth recorded a year earlier, when seasonally adjusted total labor costs and wages each rose 0.6% and non-wage costs increased 0.5%.

The latest figures show that labor costs continue to rise in Cyprus, with both wages and additional employment expenses contributing to the increase.

Aegean Airlines swung to a €3.3 million net loss in the first half of 2026 as higher fuel and emissions costs and Middle East disruptions weighed on earnings. Passenger demand remained relatively resilient. Domestic traffic rose 6% to 3.28 million, while international traffic was broadly flat at 4.49 million.

Higher Costs Pressure Earnings

EBITDA fell 7% to €145.3 million, and EBIT dropped 35% to €38.5 million. Aegean moved from a €47.9 million net profit in the first half of 2025 to a €3.3 million loss.

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Fuel costs increased 11% to €184.3 million, while emissions costs doubled to €43.8 million. Maintenance expenses rose 15% to €112.1 million, and employee costs increased 7% to €105.1 million.

Aegean said higher fuel and emissions costs had a €40 million net impact after hedging. Foreign exchange movements added €14.1 million in valuation losses, compared with a €30.6 million gain a year earlier.

Second Quarter Returns To Profit

The second quarter provided some relief, with net profit reaching €18.5 million, although that was 66% below the €54.5 million recorded a year earlier.

Revenue rose 3% to €495.8 million, and passenger traffic increased 1% to 4.54 million. EBITDA fell 12% to €98.8 million, while EBIT declined 29% to €43.6 million.

Middle East Disruption Hits International Network

Flights across parts of the Middle East were suspended for four months from March to June, affecting direct and connecting traffic through Athens.

Chief Executive Dimitris Gerogiannis said the first half was “shaped by the initial impact of the war in the Middle East.” Total available seats still increased 3% to 9.69 million, while the load factor eased to 80.3% from 81.1%.

“Yields remained stable but also did not increase to offset the rise in fuel costs,” Gerogiannis said.

Aegean Keeps Investing

Passenger traffic rose 4.8% across the domestic and international networks in July and August, according to Gerogiannis. With jet fuel prices still roughly twice as high as at the start of the year, the airline plans to maintain disciplined capacity growth over the next six to eight months.

Five Airbus A321neo aircraft were delivered in the first half, bringing the Airbus neo fleet to 43 aircraft. Two more A321neos are expected by the end of September.

Aegean ended June with €956.1 million in cash and other financial investments, up €114 million year over year. Net debt stood at €676.4 million, while operating cash flow increased to €299.4 million from €228.9 million.

Interest rates in Cyprus moved in opposite directions in July 2026, with deposit returns falling while housing loan costs increased. The banking market remained more attractive for savers than the euro area average, while borrowing costs were also below the bloc-wide level.

According to the Central Bank of Cyprus (CBC), the average rate on new household deposits fell to 1.27% from 1.42% in June. At the same time, the average rate on new housing loans rose to 3.24% from 3.18%, compared with euro area averages of 2.10% for deposits and 3.54% for housing loans.

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Deposit Rates Continue To Ease

The CBC data cover every credit institution operating in Cyprus and refer to new euro-denominated deposits from euro area-resident households.

For deposits with an agreed maturity of up to one year, National Bank of Greece offered the highest household rate in July at 1.62%, slightly below 1.64% in June. Alpha Bank followed at 1.45%, up from 1.39%, while Eurobank and Societe Generale each offered 1.32%. Eurobank had paid 1.51% in June, while Societe Generale had offered 1.12%.

For corporate customers, Ancoria Bank offered the highest deposit rate at 1.94%, up from 1.60% in June. Alpha Bank followed at 1.66%, compared with 2.05% the previous month.

Housing Loan Costs Move Higher

The average interest rate on new euro-denominated housing loans to euro area-resident households rose to 3.24% from 3.18% in June, regardless of the initial rate-fixing period. The CBC said the figure covers new business and new loan agreements.

Even so, Cyprus remained below the euro area average of 3.54%. Among the institutions covered by the CBC data, Societe Generale recorded the highest household housing-loan rate at 3.55%, although no comparable June figure was available. Bank of Cyprus followed at 3.37%, up from 3.28%, while the Housing Finance Corporation recorded 3.31%, down from 3.36%.

The average rate on new loans of up to €1 million to companies also increased, reaching 4.51% from 4.16% in June.

Among lenders, Banque SBA reported the highest rate at 6.99%, followed by Societe Generale at 4.99% and Ancoria Bank at 4.79%.

A Banking System Rebuilt, But Debt Remains

The latest figures come against a broader backdrop of progress in Cyprus’ banking sector, where non-performing loans have fallen sharply in recent years. Yet the country’s wider private debt burden has not disappeared.

In an analysis published by the CBC, Xenios Socratous of the central bank’s risk analysis section said Cyprus had undergone a major transformation, moving from NPL levels that once approached half of total lending to a banking system whose asset-quality indicators are now broadly aligned with the EU average.

Socratous argued that the NPL problem was not simply a banking ratio but a broader macroeconomic constraint. High levels of bad loans tied up bank capital and limited banks’ ability to finance the economy, while heavily indebted households and businesses delayed spending and investment.

The clean-up involved stronger provisioning, dedicated arrears-management units, legal reforms, restructuring, debt-for-asset swaps and the sale of NPL portfolios, including Bank of Cyprus’ Project Helix. These measures helped strengthen bank balance sheets and release capital for new lending.

However, moving loans off bank balance sheets did not make the underlying debt disappear. Credit-acquiring companies now hold most problematic exposures, leaving borrowers with outstanding obligations and ongoing restructuring or recovery procedures, while unresolved NPLs can continue to weigh on the property market.

“Selling NPLs improves banks’ balance sheets, strengthens investor confidence and releases capital for new lending. The underlying credit risk, however, does not disappear. It is transferred to another creditor,” Socratous said.

Housing Security Returns To The Policy Agenda

Household debt has also returned to the European banking debate, with particular attention to vulnerable borrowers and primary residences. Cypriot MEP Michalis Hadjipantela has urged the Association of Cyprus Banks to strengthen protections for borrowers who have already repaid a substantial share of their mortgages but remain at risk of losing their homes.

His letter was also sent to the CBC and the European Central Bank, following European Parliament-backed provisions calling for adequate protection of primary residences, particularly for vulnerable households.

Cyprus and Greece are seeking to expand economic cooperation by attracting investment, strengthening economic diplomacy and helping businesses enter third markets.

The issue was discussed in Nicosia by Cypriot Foreign Minister Constantinos Kombos and Greek Deputy Foreign Minister Harry Theoharis during Theoharis’ two-day visit on Sept. 14 and 15, according to the Greek Foreign Ministry.

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Focus Shifts Toward Third Markets

Kombos said the talks focused on “strengthening economic diplomacy, investments, and joint business extroversion in third markets.” The approach would encourage companies from both countries to pursue opportunities abroad rather than limiting cooperation to bilateral trade and investment.

The existing economic relationship provides a strong base for that effort. Trade in goods between Cyprus and Greece reached €3.3 billion in 2025, with Greece remaining one of Cyprus’ key commercial partners, according to Energy Minister Michalis Damianos.

Business Ties Take Center Stage

Theoharis also met Damianos and Invest Cyprus CEO Marios Tannousis, as well as Cyprus Chamber of Commerce and Industry President Stavros Stavrou and Cyprus-Greece Business Association President Joseph Joseph.

The meetings focused on identifying new areas of cooperation, supporting companies expanding abroad and creating additional investment and trade opportunities.

Cooperation Amid A Changing Regional Landscape

Kombos and Theoharis also reaffirmed the countries’ strategic relationship and discussed regional developments and Greece’s upcoming presidency of the Council of the European Union in 2027.

Greece will hold the rotating presidency from July through December 2027, following Lithuania and as part of the 18-month trio with Ireland and Lithuania. The role allows Greece to help set the EU agenda, build consensus among member states and steer legislative work.

The broader economic agenda reflects a growing role for governments as facilitators of international business, using diplomatic ties to help companies build partnerships and access new markets.

Doing nothing with your savings is not a neutral choice. In Europe, it can mean losing purchasing power over time. Revolut’s European Wealth Drain Index, based on 20,007 adults across 20 EU member states and official deposit and inflation data, shows households holding cash while its real value declines.

Cash Is Losing To Inflation

In 12 of the 20 markets studied, average one-year deposit rates are below inflation. Across the sample, deposits pay 2.76% on average, compared with inflation of 2.94%.

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Revolut estimates households forgo €638 per €10,000 each year by keeping money in cash, compared with the MSCI Europe ETF’s 10-year annualized return of 9.06%. Across €6.3 trillion in liquid deposits covered by the study, that represents roughly €422 billion a year not flowing into investment.

Why Savers Stay Put

Two-thirds of respondents have never switched banks for a better rate. Among them, 26% prefer their existing bank, 18% see little difference and 15% do not know where to look.

Financial literacy is another barrier: 46% misjudge their inflation-adjusted returns, while 19% do not realize inflation affects cash. One in five Europeans has no savings.

Revolut Favors Lower Investment Barriers

Among non-investors, 29% cite perceived risk as the main barrier and 27% cite lack of knowledge. Revolut says active EU retail investors on its platform increased 56% year over year.

“Forced enrolment doesn’t tackle the root causes of inertia: perceived risk (29%) and a lack of knowledge (27%),” said Rolandas Juteika, Revolut’s head of wealth and trading. He said the median first-time EU investment on the platform is €18.

Europe’s Savings Divide

Central and eastern Europe has some of the widest gaps between inflation and deposit rates, led by Bulgaria at 2.3%, Slovakia at 1.7% and Lithuania at 1.3%. Meanwhile, 51% of respondents in both Bulgaria and Romania said they would consider starting to invest.

Germany has €1.9 trillion in deposits and France €588 billion, while fewer than 40% of respondents in Denmark and Sweden understand how inflation affects long-term wealth.

Brussels Wants Savings To Fund Investment

The findings come as the EU seeks to direct more private savings toward European investment. The European Commission estimates €10 trillion in household savings are held in bank accounts, while the Draghi report estimated Europe needs an additional €750 billion to €800 billion in annual investment by 2030.

The Savings and Investments Union, adopted in March 2025, aims to encourage investment through simpler savings accounts, pension reforms, securitization rules and changes affecting banks and insurers. The Commission estimates the measures could unlock as much as €470 billion in additional investment.

Von der Leyen has called for an agreement by the end of 2026, ideally involving all 27 member states, while leaving open the possibility of moving ahead with ready countries.