CIFA: A Year Of Strategic Growth And Opportunity For Investment Funds In 2025

by THEFUTURE.TEAM

January 9, 2025

The Cyprus Investment Funds Association (CIFA) is stepping into 2025 with renewed confidence, building on the significant achievements of the past years. Despite the global uncertainties that continue to unfold, Cyprus’ Investment Funds sector has firmly established itself as a vital contributor to the nation’s economic and social prosperity.

In 2024, Cyprus reached a major milestone, surpassing €9.3 billion in assets under management. This remarkable achievement highlights the sector’s impressive growth and resilience. The year also marked an expansion of Cyprus’ global presence, attracting new fund managers and investment opportunities, further cementing its status as a leading European hub for Investment Funds. This success was driven by strategic collaborations and the dedicated efforts of professionals within the sector, fostering the creation of specialized job roles and reinforcing Cyprus’ position as a robust financial centre.

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Looking ahead to 2025, CIFA remains fully committed to promoting Cyprus as the premier destination for global investment funds. By working alongside key stakeholders, including the Ministry of Finance, the Cyprus Securities and Exchange Commission, and Invest Cyprus, CIFA aims to enhance the regulatory framework and drive innovative solutions for the industry. The timely approval of pending legislation that modernizes regulatory processes and introduces new investment structures is crucial for unlocking the full potential of the sector. These updates will provide the industry with the necessary tools to stay competitive and aligned with international best practices. CIFA urges all stakeholders to prioritize this agenda to ensure Cyprus continues to attract high-quality investments and talent.

In addition, CIFA recognises the importance of equipping individuals and businesses with essential financial knowledge. In 2025, the association plans to roll out initiatives designed to boost financial literacy across Cyprus. These will include workshops, partnerships, and digital campaigns aimed at enhancing understanding of investment funds and financial planning. By empowering citizens and professionals with the knowledge to make informed financial decisions, CIFA is contributing to the long-term economic resilience of Cyprus.

Maria Panayiotou, President of CIFA, shares her outlook for the year: “The success of the Investment Funds sector is a reflection of our adaptability, innovation, and ability to thrive in a competitive global market. In 2025, our focus will be on sustainability, technology-driven solutions, and strengthening our partnerships across markets. Our goal is to drive economic growth while delivering lasting value for society. With the combined expertise and dedication of our sector, I am confident that we will continue to play a transformative role in Cyprus’ economy, fostering resilience and creating opportunities for all.”

As Cyprus embarks on a year of revitalisation and resilience, CIFA remains steadfast in advocating for the interests of its members, elevating Cyprus on the international stage, and supporting initiatives that promote sustainable development within the financial sector. The association calls on all stakeholders to collaborate in advancing the innovation, sustainability, and resilience that will define Cyprus’ financial future.

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IMF Says Cyprus Growth Will Ease As Energy Costs And Regional Tensions Weigh On Economy

by THEFUTURE.TEAM

June 24, 2026

Cyprus is expected to remain among the better-performing economies in the European Union, although growth is projected to moderate this year as higher energy prices, geopolitical uncertainty, and softer tourism activity weigh on economic momentum.

Growth Set To Moderate After A Strong Run

In its latest Article IV Consultation, the International Monetary Fund (IMF) noted that the Cypriot economy has remained resilient despite a challenging external environment. However, the Fund expects growth to slow compared with last year as rising energy costs and regional tensions begin to affect household incomes, business confidence, and tourism flows.

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“Growth is expected to moderate this year as higher energy prices and geopolitical tensions weigh on real incomes, tourism and confidence,” the IMF said.

The Fund projects GDP growth of 2.6% in 2026, compared with 3.8% in 2025. Under a more adverse scenario involving a prolonged crisis in the Gulf region, growth could slow further to 1.7%.

Inflation Is Turning Higher Again

Alongside slower growth, inflation is expected to increase in the near term after easing significantly last year. According to the IMF, higher energy costs linked to developments in the Middle East are beginning to feed through to consumer prices.

“Inflation is projected to rise in the near term before easing. Risks are tilted to the downside, notably from a more prolonged war in the Middle East, tighter global financial conditions and weaker external demand. Medium-term prospects are more balanced, supported by strong fundamentals and reform momentum,” the Fund said.

The harmonised inflation rate, which declined to 0.8% in 2025, is forecast to rise to 3.5% this year before easing again to 1.5% in 2027.

Tourism Softens, But Fiscal And Financial Buffers Hold

While the IMF pointed to signs of weaker tourism activity, it said the broader economy continues to benefit from strong fiscal and financial fundamentals.

“Fiscal performance has remained strong, with continued surpluses and public debt declining below 60 per cent of GDP. The financial sector is sound, with strong capital and liquidity buffers and improving asset quality,” the report noted.

Domestic demand remains resilient, while exports of services continue to support economic activity. Sectors such as information and communications technology and tourism are expected to remain important contributors to growth, helping Cyprus maintain one of the strongest economic performances within the EU.

A Recovery Built On Policy Discipline

The IMF praised the Cypriot authorities for maintaining a strong fiscal position, rebuilding policy buffers and putting public debt on a clear downward trajectory. It also pointed to the country’s remarkable rebound since the 2013 banking crisis. Per capita GDP, measured against the EU average, has now returned to pre-crisis levels.

That said, the Fund urged policymakers to keep focusing on the quality of public finances. It said Cyprus should improve the efficiency of spending and taxation, prioritise high-quality public investment and maintain discipline in public wage growth.

Any support for households, the IMF added, should be temporary and tightly targeted. It welcomed the government’s recent comprehensive tax reform and a proposal to build financial assets in the social security fund.

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