Nicosia and other cities across Cyprus are witnessing a dynamic shift in their local economies, driven by the expansion of the night-time economy. This emerging sector, encompassing businesses and activities that thrive during evening and night hours, has created new opportunities for economic growth, particularly in entertainment, dining, and retail. The rising prominence of this sector not only highlights changing consumer preferences but also signals a strategic avenue for urban development and investment.

The concept of a night-time economy is not new, but its potential in Cyprus is becoming more evident as cities increasingly embrace a 24-hour lifestyle. In Nicosia, for instance, the flourishing scene of bars, restaurants, clubs, and cultural events is attracting a wide range of consumers, from local residents to tourists. This transformation has led to a significant boost in spending, creating ripple effects across various sectors, including hospitality, retail, and transport.

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According to recent data, night-time economic activities are contributing to job creation and offering businesses a chance to diversify their revenue streams. The increase in late-night dining options, entertainment venues, and extended retail hours is providing consumers with more flexibility, leading to higher foot traffic in city centres during evening hours. This shift is particularly beneficial for businesses looking to maximise profitability by tapping into different market segments, including younger demographics who are more likely to engage in night-time activities.

The development of a robust night-time economy also presents an opportunity for cities to enhance their cultural offerings. Nicosia, for example, has seen a growing number of cultural events and performances taking place at night, enriching the city’s social fabric and positioning it as a vibrant urban hub. These events not only draw in local crowds but also attract international visitors, boosting the city’s tourism appeal.

However, with these opportunities come challenges. One of the key concerns raised by local authorities and business owners is the need to ensure safety and maintain a balance between economic activity and quality of life for residents. As the night-time economy grows, cities must address issues such as noise, security, and transportation to create a sustainable environment that benefits both businesses and communities. Effective urban planning and public policy will be essential in managing these challenges while promoting the growth of this sector.

Moreover, businesses that operate during night hours must adapt to the unique demands of this market. This includes offering services that cater to late-night customers, ensuring accessibility, and maintaining a strong focus on customer experience. For retailers and hospitality providers, creating a safe, welcoming, and engaging atmosphere is key to capitalising on the opportunities presented by the night-time economy.

The National Council is set to convene at the Presidential Palace at 11 am on Monday, 7 October to discuss the forthcoming trilateral meeting of Cyprus President Nikos Christodoulides with the UN Secretary General Antonio Guterres and Turkish Cypriot leader Ersin Tarar in New York on 15 October.

In statements to CNA, Government Spokesperson, Konstantinos Letymbiotis, said that President Christodoulides will brief the members of the National Council about the important meetings he held in New York on the sidelines of the UN General Assembly, while there will be an exchange of views and the necessary coordination in view of the 15 October meeting in New York.

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According to the Spokesperson, the President will inform the National Council “about the important meetings he held in New York”, including his meeting with the UN Secretary-General and the representatives of the five permanent members of the Security Council.

“Furthermore, there will be a briefing and an exchange of views and the necessary coordination ahead of the October 15 joint meeting”, between President Christodoulides, and Turkish Cypriot leader, Ersin Tatar, in the presence of the UN Secretary-General, he added.

Cyprus has been divided since 1974 when Turkey invaded and occupied its northern third. Repeated rounds of UN-led peace talks have so far failed to yield results. The latest round of negotiations, in July 2017 at the Swiss resort of Crans-Montana ended conclusively.

Cypriot banks raised mortgage rates in August while cutting interest on one-year deposits for households, according to data released by the Central Bank of Cyprus (CBC).

Meanwhile, the total value of new loans dropped sharply in August, falling by 33 per cent compared to July.

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The latest figures, published on Wednesday reveal that the interest rate for short-term deposits by households fell to 1.79 per cent, from 1.96 per cent in July. In contrast, the deposit rate for businesses (non-financial companies) travelled in the opposite direction up to 2.33 per cent in August from 2.28 per cent in the previous month.

Consumer loan rates also saw a small decline, dropping to 6.59 per cent from 6.67 per cent in the previous month. Mortgage rates rose marginally to 4.65 per cent, from 4.59 per cent.

Rates for businesses, on loans €1 million also fell to 5.36 per cent from 5.61 per cent. For loans

above €1 million the rate fell to 5.42 per cent from 5.64 per cent.

In terms of new loans, there was a marked drop across the board. Total new loans fell to €395.5 million, down from €596.3 million in July.

Consumer loans also fell with net new loans at €19m, compared to July’s €28m (€26.1m net).

Loans for house purchases also declined significantly, falling to €95.6m, of which €72.3m were net new loans, down from €134.3m (€100.7m net) in July.

New loans of under a million euro to businesses decreased to €52.8m (€34.1m net), down from €75.5m in July (€49.5m net).

Similarly, loans of over a million euros were halved to €179.3m (€78.3m net), compared to €345.2m (€211.8m net) in the previous month.

Artificial intelligence (AI) is poised to revolutionise the healthcare industry, and this potential was at the heart of the keynote speech delivered by Cyprus’ Chief Scientist  Demetris Skourides, at the recent EFMA 2024 conference. The event, which brought together key stakeholders from the healthcare and technology sectors, focused on how AI can transform healthcare systems, from improving diagnostics to optimising patient care.

In his speech, the Chief Scientist highlighted the profound impact AI can have on healthcare, stressing that it is no longer a futuristic concept but a present reality shaping the industry. AI-driven technologies, such as machine learning algorithms and data analytics tools, are already being used to assist doctors in diagnosing complex diseases, predicting patient outcomes, and personalising treatment plans. These advancements, according to the Chief Scientist, represent just the beginning of what AI can achieve in the healthcare sector.

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One of the most promising areas of AI application is diagnostics. By analysing vast amounts of medical data, AI systems can detect patterns that may not be immediately visible to human practitioners. This can lead to earlier detection of diseases such as cancer, heart conditions, and neurological disorders, ultimately saving lives and reducing healthcare costs. The Chief Scientist pointed to AI-powered diagnostic tools that have demonstrated remarkable accuracy in identifying early-stage conditions, emphasising their potential to complement the expertise of healthcare professionals.

Beyond diagnostics, AI is also making strides in improving operational efficiency within healthcare systems. From optimising hospital workflows to managing patient records and resource allocation, AI can streamline processes, reduce human error, and enhance overall service delivery. For instance, AI-driven systems can predict patient admissions, allowing hospitals to allocate staff and resources more effectively. These innovations, according to the keynote address, are critical in addressing the increasing demand for healthcare services, particularly in an ageing global population.

However, the Chief Scientist also acknowledged the challenges that come with the integration of AI in healthcare. Ethical considerations, such as ensuring data privacy and managing the potential bias in AI algorithms, remain significant hurdles. Additionally, healthcare professionals need proper training to effectively use AI tools, and the healthcare industry must adopt a regulatory framework that ensures both safety and efficacy in AI applications.

The speech concluded with a call for collaboration between governments, healthcare providers, and tech innovators to fully realise AI’s potential in the healthcare sector. The Chief Scientist urged for continued investment in research and development to ensure that AI not only enhances patient care but also upholds ethical standards and promotes equitable access to advanced medical technologies.

The House Price Index for the second quarter of 2024 amounts to 112.86 units, according to CySTAT’s preliminary estimate. increasing by 2.5% compared to the Index of the corresponding quarter of 2023.

Compared to the first quarter of 2024, the HPI increased by 1.2%.

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The House Price Index (HPI) is a quarterly index which measures the change in the average prices of residential housing units. It captures all types of residential properties, both new and existing. The land component of the residential property is included.

Cyprus is set to deliver a fiscal surplus of €1.13 billion in 2025, equivalent to 3.3% of GDP, according to the state budget presented to the House of Representatives.

The budget outlines an overall increase in revenues of 6.2% in 2025, with a slight 1.2% reduction in expenditures compared to 2024.

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Total state expenditure for 2025 is projected at €12.93 billion, encompassing debt repayments, interest, and investments. The breakdown includes €3.53 billion for the Fixed Fund, €7.85 billion in regular expenditures, and €1.55 billion for development expenses. This represents a slight decrease from the €13.1 billion allocated in 2024.

In terms of revenues (excluding financial flows), the government forecasts a 6.2% increase, bringing the total to €10.31 billion in 2025, compared to €9.71 billion in 2024. The main sources of revenue will come from direct and indirect taxation, estimated at €8.48 billion—or 82% of total revenues. The remaining 18% will be generated from non-tax income, including the sale of goods and services, rental income, and transfers.

Direct tax revenues are projected to rise by 4.9% to €3.92 billion, while indirect taxes are expected to increase by 5.6%, totalling €4.56 billion. Non-tax revenues are forecast to see a significant 10.3% increase, reaching €1.83 billion.

While there is a slight 1% decrease in personnel-related expenditures, totalling €3.62 billion in 2025, operational expenditures are expected to surge by 21.4%, reaching €1.42 billion. This is attributed to increases in reserve funds, defence, policing, and consulting services.

Transfer payments—including social benefits, grants to public and private organizations, and contributions to the EU budget—are expected to grow by 5.3%, reaching €3.99 billion. The largest increases in 2025 will be in contributions to the General Healthcare System (GeSY) and social security funds.

Capital expenditures, which cover co-financed projects, land and equipment purchases, and building renovations, are projected to rise by 4% in 2025 to €1.14 billion. Meanwhile, debt service expenditures are expected to fall by 18.6%, dropping to €2.75 billion in 2025 from €3.38 billion in 2024.

Steady growth until 2027

Looking at key economic indicators, the Cypriot economy is expected to grow steadily through 2027. GDP for 2025 is projected at €33.86 billion, with an annual growth rate of 3.1%. By 2027, GDP is forecast to reach €37.54 billion, with growth rates of 3.2% and 3.3% in 2026 and 2027, respectively.

Unemployment is set to decline from 5.0% in 2024 to 4.5% by 2027, while inflation is expected to remain stable at 2.0% annually from 2025 to 2027. The fiscal surplus is forecast to remain strong, at 3.3% of GDP in 2025, declining slightly to 3.1% by 2027.

The primary surplus is expected to reach 4.8% of GDP in 2025 and stabilize at 4.4% by 2027. Meanwhile, public debt as a percentage of GDP is projected to decline from 69.3% in 2024 to 64.2% in 2025 and 53.5% by 2027.

Capital expenditures are expected to peak at €1.39 billion (or 4.1% of GDP) in 2025, before dropping to 3.1% of GDP by 2027.

The economic situation and rising prices and cost of living were the main topics that motivated Cypriots to vote in the last European elections in June this year, according to a post-electoral survey published by the European Parliament.

These were also the two main reasons for voting on the EU level (42% for cost of living and 41% for the economic situation), but the shares were much larger in Cyprus where the economic situation led with 56%, followed by rising prices and cost of life with 47%.

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The third most popular reason in Cyprus was migration and asylum (45%, compared to 38% and sixth place in the EU average), followed by education in fourth place (26%, compared to 13% in the EU) and democracy and rule of law in fifth place (24%, compared to 32% and fourth place in the EU).

The international situation was in sixth place for Cypriots tied with the defence and security of the EU (21%), while on average in the EU the global situation was picked in third place with 34% and defence and security in seventh place with 28%.

Those who did not vote in Cyprus said the cost of living (53%), migration and asylum (45%) and the economic situation (42%) could have motivated them to participate in the elections.

The European Parliament post-electoral survey across the EU was conducted between June 13th and July 8th 2024, with a total of 26,349 face-to-face interviews. In Cyprus, the survey was conducted from June 13th to July 5th, and a total of 506 face-to-face interviews.

Israel’s economy has suffered a significant setback as both Standard & Poor’s (S&P) and Moody’s, two of the world’s leading credit rating agencies, issued warnings that cast doubt on the country’s economic stability. The dual blow comes amidst rising concerns over Israel’s political landscape and its potential impact on the nation’s economic health.

S&P and Moody’s have each downgraded Israel’s outlook from stable to negative, pointing to increasing uncertainty driven by domestic political turbulence. These revisions could potentially raise the cost of borrowing for Israel, as investors factor in the increased risk associated with the country’s future economic prospects. Moody’s, in particular, highlighted the “political and social tensions” that could undermine economic reforms and long-term growth.

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The current political crisis, marked by widespread protests and deep divisions over judicial reforms, has sent shockwaves through both the Israeli public and international observers. The ongoing unrest has raised concerns that political instability could stymie Israel’s traditionally resilient economy, which has been a standout in the Middle East due to its strength in sectors such as technology, defence, and innovation.

One of the primary concerns raised by the credit rating agencies is the potential weakening of institutional checks and balances, particularly in relation to the government’s push to overhaul the judicial system. Such reforms have triggered fears that Israel’s reputation as a stable and transparent democracy could be at risk, with potential negative implications for foreign investment and economic growth.

Despite these setbacks, Israel’s economy remains robust, with strong fundamentals in key sectors. The country has long been a hub for innovation, particularly in the technology industry, which continues to attract international investors. However, the downgrades from S&P and Moody’s send a clear message that political turmoil could jeopardise these advantages.

For Prime Minister Benjamin Netanyahu’s government, these warnings represent a critical challenge. As the nation navigates this period of uncertainty, the administration will need to strike a delicate balance between political reforms and maintaining investor confidence. Failure to do so could result in further economic challenges, especially if international markets begin to question Israel’s long-term stability.

In the short term, the downgrades are a wake-up call for the Israeli government to reassess its political strategy and ensure that economic stability remains a priority. While Israel’s core industries continue to perform well, the political situation will need careful management to prevent long-term damage to the country’s economic reputation and global standing.

Cyprus continues to draw international attention for its hallmark product—halloumi—while simultaneously witnessing the rapid growth of its technology sector. As the island balances its traditional agricultural strengths with its ambition to become a regional tech hub, a growing number of businesses are targeting niche markets to drive economic growth and global competitiveness.

Halloumi, the iconic Cypriot cheese, remains a significant contributor to the country’s economy. Its Protected Designation of Origin (PDO) status, granted by the European Union, has provided a vital shield, securing its authenticity and safeguarding Cypriot producers from international competition. This distinction ensures that only cheese produced in Cyprus following traditional methods can be marketed under the “halloumi” name within the EU. Consequently, halloumi exports have surged, solidifying its role as a national asset.

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Yet, while agriculture remains an important economic pillar, Cyprus is diversifying rapidly into technology, driven by the digital transformation of global industries. The Cypriot tech sector has grown significantly in recent years, with local and international companies establishing themselves on the island. This growth is supported by favourable government policies, including tax incentives and investment in digital infrastructure, as well as the country’s strategic location at the crossroads of Europe, Africa, and the Middle East.

Tech companies in Cyprus are increasingly looking to niche markets to carve out competitive advantages. These markets—ranging from fintech to healthtech and cybersecurity—offer opportunities for specialised solutions, particularly in a world where digital services and innovation are at the forefront of global demand. By focusing on these targeted areas, Cypriot tech firms are aiming to provide unique value propositions, establishing themselves as leaders in their respective fields.

The marriage of tradition and innovation is a defining characteristic of Cyprus’ current economic trajectory. Halloumi serves as a reminder of the island’s rich cultural heritage, while the burgeoning tech industry illustrates its forward-looking ambitions. For businesses operating in Cyprus, this combination presents a unique opportunity to leverage the country’s growing reputation in both sectors.

In an increasingly competitive business environment, Eurofast, a regional business advisory organisation, continues to assert its presence by expanding its outsourcing centre in Banja Luka, Bosnia and Herzegovina. The company’s decision reflects its broader growth strategy, positioning it to tap into the rising demand for outsourcing services across the Balkans and the wider European region.

The expansion in Banja Luka is more than a routine operational shift—it signals a forward-thinking move by Eurofast to strengthen its foothold in a market that has been gaining traction for outsourcing. The region offers a cost-effective yet skilled labour force, a crucial factor for companies looking to optimise operational efficiency while maintaining high service standards. Eurofast’s ability to capitalise on these opportunities demonstrates its strategic agility and foresight in recognising the region’s potential.

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Banja Luka, the second-largest city in Bosnia and Herzegovina, is emerging as a hub for outsourcing, thanks to a combination of economic stability and a growing pool of talent. The city’s relatively low cost of living compared to Western European cities makes it an attractive location for companies seeking to balance cost control with access to a skilled workforce. Eurofast’s expansion is likely to enhance the local economy by creating job opportunities, particularly in finance, accounting, and administrative support services—sectors where outsourcing demand is strongest.

Eurofast’s CEO, Christodoulos Damianou, has been vocal about the company’s ambitious plans for the region. He highlights that the expansion is part of a long-term vision to serve international clients more effectively by providing bespoke solutions from a centralised, strategically located hub. This approach aligns with global outsourcing trends, where companies seek to consolidate services in fewer, high-performing centres rather than spreading operations across multiple locations.

The expansion also underscores Eurofast’s confidence in the region’s political and economic stability, which is critical for long-term investment. Bosnia and Herzegovina, while still navigating its post-conflict reconstruction, offers a stable business environment with favourable trade agreements with the European Union, which is a critical consideration for Eurofast’s clientele.

By reinforcing its operations in Banja Luka, Eurofast not only strengthens its position in the outsourcing market but also underscores its commitment to delivering cost-effective, high-quality services. As businesses increasingly look to outsourcing as a means of driving efficiency, Eurofast’s move is a timely and strategic investment in the future of both the company and the region.