Cyprus’ economy is expected to grow 2.9% in 2026, down from 3.8% in 2025, as the Middle East conflict disrupts energy markets, tourism and investment.

In its September forecasts, the Central Bank of Cyprus projected growth would recover to 3.1% in both 2027 and 2028. The baseline assumes the conflict continues until the final quarter of 2026, followed by a gradual easing of tensions.

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Energy And Tourism Weigh On Growth

Higher oil prices, wider refining margins and geopolitical uncertainty are expected to raise energy costs, reduce tourism receipts and weaken non-residential private investment.

Domestic demand should provide a cushion. Private consumption is expected to remain positive as real disposable incomes rise, while the labor market and major residential and non-residential projects should support activity.

Net exports are forecast to weigh on growth in 2026 as tourism revenue declined in the first half of the year. Their contribution is expected to turn positive again in 2027 and 2028 as tourism recovers.

CBC Raises Growth And Cuts Unemployment Forecasts

The CBC raised its 2026 growth forecast by 0.4 percentage points and its 2027 estimate by 0.2 percentage points from June. Stronger-than-expected second-quarter activity, improved tourism performance and residential investment supported the revisions.

Unemployment is now forecast at 3.8% in 2026, remaining at that level through 2028. The CBC cut its unemployment forecasts by 0.8 percentage points for 2026 and 0.7 percentage points for both 2027 and 2028, citing stronger economic performance and a lower-than-expected rate in the first half.

Inflation Forecast Rises To 3.3%

The Harmonised Index of Consumer Prices is expected to rise to 3.3% in 2026, from 0.8% in 2025, mainly because of higher energy prices and refining margins linked to the Middle East conflict.

Services and food prices are also expected to increase as higher energy and operating costs pass through the economy. Non-energy industrial goods are forecast to remain in deflation, partly due to lower import prices from China and increased online shopping.

Government measures, including lower VAT on electricity and extended reduced fuel excise duties, are included in the forecasts.

Inflation is projected to ease to 2.4% in 2027 and 1.9% in 2028. The 2028 outlook also assumes the introduction of the EU’s expanded Emissions Trading System, ETS2, which is expected to affect transport fuel prices.

Core Inflation Remains Elevated

Core inflation is forecast to rise to 2.8% in 2026 from 1.9% in 2025, driven mainly by stronger services inflation and indirect energy effects.

It is expected to moderate to 2.2% in 2027 and 1.9% in 2028. The CBC raised its 2026 core inflation forecast by 0.4 percentage points from June, while leaving its 2027 and 2028 forecasts unchanged.

Risks Remain Tilted Toward Weaker Growth

The CBC said risks for 2026-2028 remain tilted toward weaker growth and higher inflation. A renewed escalation of tensions in Iran could push energy and import prices higher, particularly if supply chains are disrupted.

Climate-related shocks, stronger wage growth, wider profit margins and the impact of pension increases linked to upcoming reform were also identified as risks.

Cyprus recorded 581,880 tourist arrivals in August, down 3.3% from 602,026 a year earlier, according to the Statistical Service of Cyprus (Cystat). The decline narrowed as arrivals from Israel rose sharply, while traffic from several other major markets weakened.

August arrivals were still 4.9% above the 554,923 recorded in August 2024.

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Year-To-Date Decline Narrows

Tourist arrivals reached 2.82 million in the first eight months of 2026, down 7% from 3.03 million a year earlier. The gap narrowed from 10.1% at the end of June and 8% at the end of July.

Britain remained Cyprus’ largest market, accounting for 30.5% of August arrivals, or 177,603 visitors. UK arrivals fell 8% year on year, while Israeli arrivals jumped 28.4% to 135,628, accounting for 23.3% of the monthly total.

Together, Britain and Israel supplied more than half of all tourist arrivals in August.

Most Major Markets Remain Under Pressure

Poland remained the third-largest market, although arrivals fell 12.5% to 36,622. Germany followed with 25,823 visitors, down 6.7%, while Sweden declined 6.4% to 17,441.

Norway was among the few major markets to grow, with arrivals up 1.4% to 8,006. Romania fell 16.3%, Greece 9.7% and Austria 13%.

France recorded the sharpest decline among the listed markets, with arrivals plunging 46% to 8,453. The Netherlands also fell sharply, down 17.5%.

Airports Record Strong Summer Traffic

Larnaca and Paphos airports handled 1.77 million passengers in August, the highest monthly total of 2026, although traffic was 1.5% below August 2025.

For January-August, the airports handled 8.82 million passengers, down 3.3% year on year but 7.9% above the same period in 2024. Tourism Deputy Minister Kostas Koumis has said full-year arrivals could be about 5% below 2025.

Holidays Dominate Travel

Holidays accounted for 84.5% of tourist arrivals in August, down from 86.5% a year earlier. Visits to friends and relatives rose to 13%, while business travel represented 2.4%.

Meanwhile, 239,337 Cyprus residents returned from overseas trips in August, up 0.3% year on year and about 24% above August 2024. Greece remained the leading destination, accounting for 36.6% of returning residents.

Holidays represented 93.1% of residents’ trips, compared with 91.6% a year earlier, while business travel accounted for 5.9%.

London’s Napoli on the Road has been named the world’s best pizza restaurant at the 50 Top Pizza World Awards 2026, placing a Chiswick-based pizzeria at the top of the global ranking.

Chef and founder Michele Pascarella launched Napoli on the Road in 2016 from a three-wheeled Piaggio Ape equipped with a wood-fired oven. The concept began at London street markets and local events before expanding into restaurants in Chiswick, Richmond and Soho.

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From Mobile Pizzeria To Global Winner

The Soho location offers a tasting menu inspired by Pascarella’s childhood in Caserta, southern Italy. His approach combines traditional Italian influences with a broader focus on contemporary pizza and hospitality.

“I’m in shock. I probably need to have a few drinks and a sit down to process this,” Pascarella said at the awards ceremony in Naples. “I can’t explain how big this is. It’s like the Oscars but for pizza.”

New York Pizzeria Drops To Second

Una Pizza Napoletana in New York, which held the top position for the previous two years, ranked second in 2026. Milan’s Confine, led by Francesco Capece and Mario Ventura, placed third.

Now in its 10th year, the 50 Top Pizza ranking is based on assessments by nearly 1,000 anonymous inspectors. Each restaurant is visited twice, with evaluations covering pizza, ingredients, service and hospitality.

The 50 Top Pizza World 2026 Ranking

1. Napoli on the Road – London, England

2. Una Pizza Napoletana – New York, USA

3. Confine – Milan, Italy

4. I Masanielli – Francesco Martucci – Caserta, Italy

4. Seu Pizza Illuminati – Rome, Italy

5. Pizzeria Sei – Los Angeles, USA

5. Tony’s Pizza Napoletana – San Francisco, USA

6. Leggera Pizza Napoletana – São Paulo, Brazil

7. RistoPizza by Napoli sta ca – Tokyo, Japan

8. Baldoria – Madrid, Spain

9. The Pizza Bar on 38th – Tokyo, Japan

10. Razza – Jersey City, USA

11. Allería – Providencia, Chile

12. Palazzo Petrucci Pizzeria – Naples, Italy

13. I Tigli – San Bonifacio, Italy

14. 50 Kalò – Naples, Italy

15. Avenida Calò – Rome, Italy

16. Fiata – Hong Kong, China

16. gigi’s – Sydney, Australia

17. Pizzardi Artigianale – Bogotá, Colombia

17. QT Pizza Bar – São Paulo, Brazil

18. Dry Milano – Milan, Italy

19. Cambia-Menti – Caserta, Italy

20. Sasà Martucci – Caserta, Italy

21. BOB Alchimia a Spicchi – Montepaone Lido, Italy

22. IMperfetto – Puteaux, France

23. 50 Kalò – London, England

24. Ti Amo – Adrogué, Argentina

25. La Clásica – San Salvador, El Salvador

26. Truly Pizza – Dana Point, USA

27. Francesco Martucci – Miami, USA

28. Spacca Napoli – Seoul, South Korea

29. Sartoria Panatieri – Barcelona, Spain

30. Don Antonio – New York, USA

31. Crosta – Makati, Philippines

32. Jay’s – Kenmore, USA

33. Pizza Zulu – Fürth, Germany

34. Massilia – Bangkok, Thailand

35. Ribalta – New York, USA

35. Robert’s – Chicago, USA

36. nNea – Amsterdam, The Netherlands

37. Flama – Miraflores, Peru

38. Leña – Cleveland, USA

39. Sapori Italiani U Taliana – Bratislava, Slovakia

40. La Cascina dei Sapori – Rezzato, Italy

41. A Pizza da Mooca – São Paulo, Brazil

42. SHOP225 – Melbourne, Australia

43. La Notizia – Naples, Italy

44. Ken’s Artisan Pizza – Portland, USA

45. Pizzeria Braceria CESARI!! – Nagoya, Japan

46. Unica Pizzeria – São Paulo, Brazil

47. La Leggenda – Miami, USA

47. ‘O Munaciello – Miami, USA

48. a mano – Makati, Philippines

49. Forno d’Oro – Lisbon, Portugal

50. Bottega – Beijing, China

Italian investigators are examining how hackers allegedly obtained Revolut customer data after using a compromised government email account to request information.

What Data May Have Been Exposed

The allegedly stolen material includes passport details, driving license information, other identity documents and photographs. The attackers reportedly claim to have obtained 147 gigabytes of data.

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Exposure of identity records can create risks beyond direct financial losses, including fraud, impersonation and other forms of criminal exploitation.

Investigators Examine How The Attack Worked

Italy’s cybercrime police are investigating the operation, which reportedly unfolded over several months and involved unauthorized access to an IT system of public interest.

Investigators are examining whether the attack originated from a computer at the Reggio Calabria prefecture or Italy’s Interior Ministry. They are also seeking to establish whether the government email account used in the operation was directly compromised or cloned.

The National Anti-Mafia and Counter-Terrorism Directorate has joined the investigation because a government body was involved. Police said several aspects of the operation remain under review.

Data Protection Authorities Coordinate Response

Italy’s data protection authority has launched its own checks and asked data protection officers to review potential security gaps. Identified vulnerabilities are to be reported without delay.

The authority has also contacted its Lithuanian counterpart, where Revolut’s registered office is located, to coordinate information and the response.

Investigators are now focusing on how the intrusion occurred and whether other public institutions were affected.

Spanish energy company Moeve has started construction of a green hydrogen project in Andalusia that it says will be the largest of its kind in Europe.

First Phase Exceeds €1 Billion

The first phase, known as Onuba, will begin with 300 MW of electrolysis capacity, with an option to add another 105 MW. Total investment exceeds €1 billion, including infrastructure and a photovoltaic plant for self-consumption.

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Moeve expects the project to create more than 8,000 direct jobs during development, construction and commissioning, while supporting more than 400 small and medium-sized enterprises and local self-employed workers.

Spain Expands Green Hydrogen Production

“Today we are turning the page on pilot green hydrogen projects and entering the chapter of large-scale construction,” Moeve CEO Maarten Wetselaar said.

He said Spain’s solar and wind resources and available land could support large-scale renewable power production and reduce reliance on imported energy.

Onuba is expected to produce about 45,000 tonnes of renewable hydrogen annually and avoid roughly 250,000 tonnes of CO₂ emissions each year. The output will support lower-carbon fuels for road, aviation and maritime transport, as well as other industrial processes.

EU And Spanish Support

Construction began in Palos de la Frontera on Thursday at an event attended by Spanish and European officials, including Prime Minister Pedro Sánchez and European Commission Executive Vice-President Teresa Ribera.

Moeve holds a 51% stake, Hy24 and Cofides jointly own 29%, and Enagás Renovable and Alter Enersun hold the remaining 20%.

The EU has designated Onuba a Project of Common Interest, while the project has received €304 million from Spain’s Recovery, Transformation and Resilience Plan, financed through NextGenerationEU.

Onuba Is First Phase Of 2 GW Plan

Onuba is the first phase of Moeve’s Andalusian Green Hydrogen Valley, which the company plans to expand to 2 GW of electrolysis capacity across sites in Palos de la Frontera and San Roque, Cádiz.

Moeve also plans to connect Huelva with European industrial centers through pipeline and maritime routes. Its broader Andalusian energy transition program includes €2.4 billion of planned investment, including a second-generation biofuels plant for sustainable aviation fuel and renewable diesel.

European and North American cities dominate Oxford Economics’ 2026 Global Cities Index, taking 78 of the top 100 positions. Europe accounts for 44 cities, while the U.S. has 30 and Canada has four.

The index assesses the world’s largest cities across economics, human capital, quality of life, environmental conditions and governance.

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London, Paris And New York Lead Major Cities

London ranks second globally, followed by Paris in third, Dublin in sixth and Zurich in 10th. Five U.S. cities, New York, Seattle, San Francisco, Boston and San Jose, also place in the global top 10.

U.S. cities generally score strongly on economics and human capital, while European cities perform better in quality of life, environmental conditions and governance, according to Liam Sides, director of City Services at Oxford Economics.

London stands out among European cities with the index’s highest human-capital score, although its quality-of-life score of 77 is its weakest category.

Housing Costs Remain A Common Challenge

High housing costs weigh on quality-of-life scores in London, Dublin and New York. More affordable cities such as Toulouse can attract workers from larger, more expensive urban centers.

Dublin climbed seven places to sixth, while Warsaw recorded Europe’s biggest rise, jumping 109 places to 61st. Istanbul rose 42 places to 64th, while Madrid and Budapest gained 14 places each.

Not all major cities improved. Rome fell eight places to 119th, while Lisbon dropped 44 places to 148th.

Five European Cities To Watch

Oxford Economics highlighted Warsaw, Tallinn, Eindhoven, Manchester and Toulouse as European cities to watch.

Warsaw’s economy is forecast to grow by about 3% annually over the next five years, nearly twice the European-city average. Tallinn is expected to record the strongest GDP growth among major EU cities over the next decade, supported by technology and professional services.

Eindhoven remains a major research and advanced-manufacturing center, with more than 5,000 high-tech and knowledge-based companies in its Brainport cluster. Manchester has recorded the strongest GDP and productivity growth among UK cities since 2010, while Toulouse continues to benefit from its aerospace industry and relatively lower living costs.

AI Is Reshaping Urban Growth

AI is increasingly influencing the economic prospects of cities with strong technology and advanced-manufacturing industries. London benefits from its universities and digital economy, while Eindhoven combines AI with advanced manufacturing and Tallinn has relatively high AI adoption among Central and Eastern European peers.

Outside Europe and North America, Taipei climbed 12 places to 48th, Kuala Lumpur rose 14 places to 65th and Shenzhen entered the top 100 at 93rd. Oxford Economics also expects cities such as Shenzhen and Bengaluru to benefit from AI and other emerging technologies if innovation translates into productivity gains.

Asia Gains Ground

Europe and North America continue to dominate the index, but Asian cities are becoming increasingly important drivers of urban economic growth.

By 2050, Chinese and Indian cities are forecast to account for a larger share of global-city GDP than Europe. Shanghai’s economy is expected to overtake San Francisco’s next year, while Ho Chi Minh City is projected to approach Berlin’s economic size by 2050.

The 2026 index therefore shows continued strength among established European and North American cities alongside faster growth in several Asian urban centers.

Cyprus and Lebanon have begun formal discussions on a planned undersea electricity interconnector that could allow Cyprus to export surplus renewable power to Lebanon, former Energy Minister George Papanastasiou said Wednesday.

Cable Could Help Manage Cyprus’ Renewable Power

Cyprus can generate more renewable electricity at peak times than its grid can absorb, forcing temporary curtailment to prevent overload, Papanastasiou told the Cyprus Mail. An export cable could provide an outlet for surplus generation while supplying Lebanon with additional electricity.

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Battery storage would remain essential, however, because the cable alone could not stabilize variable renewable generation, Papanastasiou said.

Lebanon’s Grid Presents A Major Challenge

For Lebanon, the interconnector could improve security of supply and provide more stable electricity, provided Cyprus can maintain reliable generation and transmission.

Much of Lebanon’s power infrastructure remains severely damaged, with many areas relying on standalone systems and generators. That raises questions about whether the existing network could efficiently receive and distribute imported electricity.

Feasibility Study Comes First

The immediate priority is a feasibility study, which could be funded by the World Bank, Papanastasiou said. Any agreement would require approval from regulators in both countries, including the Cyprus Energy Regulatory Authority and Lebanon Electricity Regulatory Authority.

The proposed process would begin with a cost-benefit analysis, followed by a cross-border cost-allocation agreement if the project proves viable. Detailed design would come next.

Regional Politics Could Shape The Project

Turkey could also react to the proposed connection, Papanastasiou said, adding that he did not expect any objection to be based on international law.

The discussions follow a July agreement between Cyprus, Lebanon and the World Bank to prepare a preliminary feasibility study. Lebanon also signed a July 2 agreement with Syria aimed at establishing an electricity interconnection.

Cyprus is meanwhile pursuing the Great Sea Interconnector linking the island with Greece and Israel. A separate proposal backed by Turkey and the Turkish Cypriot authorities to connect Cyprus with Turkey is not included in the European Network of Transmission System Operators for Electricity (ENTSO-E) 10-year plan.

The Cyprus-Lebanon project will depend on the feasibility study, regulatory approvals, financing and the wider regional political environment.

Revolut said hackers obtained personal information belonging to hundreds of European customers after impersonating a government agency in a targeted fraud operation.

How The Attack Unfolded

The digital bank said it detected a “sophisticated external impersonation scam” in which an unauthorized third party used an email address from a legitimate government agency domain to submit fraudulent requests for customer data.

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According to the Financial Times, Italian hackers gained access to a compromised Italian government email account and used it to pose as officials seeking customer information.

Data obtained in the incident included customer addresses, verification photos, identity documents and information related to bitcoin activity.

Hundreds Of Customers Affected

A source familiar with the matter said roughly 680 Revolut customers across several European countries were affected. Revolut did not identify the number of customers involved in its statement.

The British fintech, whose European banking operations are legally based and licensed in Lithuania, said its systems and customer funds were “unaffected.” Affected customers were contacted and offered support, the company said.

“Upon detection, we immediately blocked the address and alerted the relevant government agency as well as enforcement agencies, data protection and financial regulators,” Revolut said.

Regulators Assess The Incident

Britain’s Information Commissioner’s Office confirmed that it had received a report about the incident and was assessing the information provided.

Rather than gaining direct access to Revolut’s systems, the attackers used a compromised government email account to request customer information. The incident highlights the risks financial institutions face when fraudsters exploit trusted communication channels.

Incident Comes Amid Rapid Expansion

Revolut has continued expanding its banking operations since launching as a fintech in 2015. The company was valued at $115 billion in a secondary share sale in July, and it received a UK banking license in March and a full French banking license in August.

Conditional approval for a US banking license followed this month, while Revolut applied for a Swiss banking license on Tuesday. The company says it now has more than 80 million customers globally and is targeting 100 million customers across 100 countries.

Danish pharmaceutical group Novo, formerly Novo Nordisk and best known for Ozempic, has partnered with Anthropic to accelerate drug development using artificial intelligence.

AI Expands Into Novo’s R&D

Under the agreement, Novo will use Anthropic’s models and Claude Science across its research and development operations. The company said the tools will support scientific reasoning, improve productivity and help researchers explore new approaches to understanding human biology and drug mechanisms.

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“Joining forces with Anthropic will supercharge our R&D organisation and help us on our mission to bring new, transformative health solutions to people living with chronic diseases,” Novo President and CEO Mike Doustdar said in a press release.

Anthropic CEO Dario Amodei said access to advanced AI models could help researchers shorten research timelines and improve drug discovery.

Novo Builds A Broader AI Strategy

The Anthropic partnership follows Novo’s separate agreement with OpenAI in April to use AI for analyzing complex datasets, identifying potential drugs and reducing the time between research and patient access.

Novo is also involved in Denmark’s AI infrastructure. In 2024, the Novo Nordisk Foundation partnered with Nvidia and the Export and Investment Fund of Denmark to establish the Danish Centre for AI Innovation, which operates the Gefion supercomputer.

Anthropic Expands In Life Sciences

Anthropic has also been expanding its presence in healthcare and pharmaceuticals. In May 2026, it announced a collaboration with Bristol Myers Squibb covering research, clinical development, manufacturing, commercial and corporate functions.

The Novo partnership adds another major pharmaceutical company to Anthropic’s life sciences business as drugmakers increasingly apply AI to research and development.

Revolut has applied for a Swiss banking license and plans to invest more than CHF 150 million in the country over the next five years.

Revolut Expands Its Swiss Offering

The fintech submitted its application to the Swiss Financial Market Supervisory Authority, or FINMA, on Wednesday. If approved, the license would allow Revolut to offer a more localized banking service to its more than 1.3 million Swiss customers.

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Planned services include Swiss IBANs, salary accounts, eBill, merchant acquiring and Swiss deposit protection. Revolut is also evaluating Pillar 3a and TWINT.

From Lithuanian License To Swiss Bank

Swiss customers are currently served through Revolut Bank UAB, which is licensed in Lithuania and has a representative office in Switzerland.

A Swiss license would allow the company to establish a locally regulated banking operation, supported by local infrastructure and staff. Revolut also plans to appoint local executives and create additional jobs as part of its Swiss expansion.

“If approved, we would become a true Swiss bank,” Julian Biegmann, Revolut’s General Manager for Switzerland, said.

Part Of European Expansion

The application follows Revolut Bank S.A.’s full banking license in August after an assessment by the European Central Bank and France’s Autorité de Contrôle Prudentiel et de Résolution.

Revolut said it now serves more than 80 million customers worldwide. If approved, the Swiss license would add another locally regulated banking operation to its European network.