Cyprus’ Economic Growth: A 2025 Projection by the European Commission

by News Editor

May 19, 2025

The European Commission has forecasted that Cyprus will see a 3% economic growth in 2025, slightly decreasing to 2.5% in 2026. This upward trend is primarily driven by resilient domestic demand, a robust services export sector, and a strong labor market.

With a 3.4% real GDP growth recorded in 2024, Cyprus has demonstrated robust private consumption, which rose by 3.8%. Investment excluding ship registrations also increased, despite a construction strike at the end of the year.

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Net exports turned positive, bolstered by tourism, ICT, and sea transport. Private consumption is expected to remain a key driver as wages rise and inflation falls, enhancing household purchasing power.

Growth Drivers and Challenges

The projection is supported by ongoing investment and structural transformation within the Cypriot economy, attracting significant investment into emerging sectors like ICT.

However, increased foreign firm activity may lead to more profit repatriation, thereby limiting gains from improved trade balances. The current account deficit is expected to shrink to 5.9% by 2026.

Potential risks include global trade disruptions, particularly impacting Cyprus’s sea transport sector. Nonetheless, Cyprus’s limited direct trade with the US minimizes its exposure to US tariffs.

Recent interest rate cuts have also stimulated loan demand, contributing to Cyprus’s financial momentum.

Favorable Fiscal Outlook

The outlook for Cyprus’ fiscal health remains positive, with a strong budget surplus and a notable decrease in the debt-to-GDP ratio, projected to be 58% in 2025.

Spending will focus on energy projects such as the LNG terminal and social schemes, with revenues anticipated to outpace expenditures due to ongoing economic strength.

Despite these commitments, Cyprus continues to attract transformational ventures, enhancing its economic landscape.

The Future Forbes Realty Global Properties

€50 Million Luxury Resort Planned For Ayia Napa

by THEFUTURE.TEAM

October 22, 2026

Ayia Napa could strengthen its position in the premium tourism market with a proposed €50 million mixed-use resort combining a hotel, serviced apartments, luxury bungalows and a beach club.

Aesara Investments Ltd has submitted an information form to the Department of Environment for a development to operate under the name Atlantica Wavemaster Hospitality. The project is planned for the Limnara area of Ayia Napa, along the coast south of Kryou Nerou Avenue, between the town centre and Cape Greco.

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Hotel, Apartments And Luxury Bungalows

The proposed resort will include a 324-room hotel with capacity for 648 guests, alongside a condo-hotel building containing 20 one- and two-bedroom apartments. Facilities are planned to include restaurants, bars, cafés, a spa with an indoor pool, a gym, shops, a multipurpose hall, a children’s club and a cinema.

A further 33 three-level luxury bungalows, each designed for two guests and featuring a private swimming pool, are planned for the southern part of the site. A beach club with a restaurant and an outdoor pool complex covering more than 6,300 square metres will also form part of the development.

The project includes 321 parking spaces, including 12 for people with disabilities, and 14,196 square metres of landscaped green space featuring local plant species.

Seasonal Hotel Operations And Year-Round Residences

The hotel is expected to operate from March to November, with peak occupancy during the summer season. The condo-hotel apartments, meanwhile, will be available for sale or long-term rental and intended for year-round residence. Owners and tenants will also have access to the resort’s facilities, including its pools, restaurants and fitness areas.

Construction is expected to take 24 months once the required permits are secured. At the busiest stage, the project could employ around 100 workers per day.

Environmental Restrictions Near Cape Greco

The site’s proximity to protected Natura 2000 areas has prompted strict environmental requirements. The Cape Greco Special Protection Area borders the site to the south, while a Special Area of Conservation lies approximately 50 metres away.

Conditions imposed by the Department of Environment include a maximum building height of five floors, or 18.5 metres, and restrictions on permanent structures near the coastline. The project must also use spider-web type glazing and low-intensity lighting to minimise disturbance to local birdlife.

According to the project’s consultants, the design has been prepared to comply with the environmental conditions and the final report on cumulative impacts for the Cape Greco Special Protection Area. The hotel and apartment building are positioned in the central and northern parts of the plot, away from the shoreline.

Within the designated no-build zone, located 40 metres from the boundary of the beach protection zone, only swimming pools are planned. The consultants state that these are not expected to affect protected species in the area.

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