Breaking news

Cyprus Economic Outlook 2026: Resilient Service Sentiment Amid Growth Uncertainty

by THEFUTURE.TEAM

Improved Service Sentiment Amid Persistent Economic Challenges

University of Cyprus Economics Research Centre (CypERC) reported an increase in economic sentiment in April 2026, with the Economic Sentiment Indicator rising by 2.1 points from March. The improvement reflects fewer negative assessments among services sector businesses, while overall growth expectations remain affected by higher uncertainty.

Sectoral Developments: Services, Retail, And Construction

In the services sector, including hospitality, businesses reported some improvement in turnover expectations and recent performance. At the same time, confidence levels remain below those of earlier periods. By contrast, retail trade showed weaker conditions, with firms reporting lower expectations for current and future sales. Construction activity also softened, as order book levels declined and production expectations weakened.

Rising Consumer Concerns And Economic Uncertainty

Consumer sentiment declined for a fourth consecutive month, with households reporting weaker expectations for their financial situation and reduced plans for major purchases. Although the Economic Uncertainty Indicator decreased in April, uncertainty remains elevated. Business uncertainty eased in retail and services but stayed higher in hospitality and financial services, while construction, industry, and lower-income households reported increased pressure.

Outlook: Slowing Growth Amid External Pressures

CypERC projections indicate slower economic growth in the coming years. Real GDP growth is expected to decrease from 3.8% in 2025 to 2.9% in 2026, followed by a partial increase to 3.1% in 2027. These revisions, down by 0.6 and 0.3 percentage points respectively, reflect external factors including geopolitical tensions in the Middle East, weaker external demand, and higher price pressures.

Fiscal Strength And Market Resilience

Earlier economic performance provides some support to the outlook. Growth in the fourth quarter of 2025, combined with public finances and low unemployment, continues to influence overall conditions. A budget surplus recorded in early 2026 and stable financial sector indicators, including deposit levels and non-performing loan ratios, contribute to current economic stability.

Inflationary Trends And Future Risks

Inflation is projected to increase from 0.1% in 2025 to 2.7% in 2026, before easing to 1.8% in 2027. The increase is linked to higher oil prices and rising domestic food costs. Future developments will depend on external demand, geopolitical conditions, and domestic economic activity.

Conclusion

The data indicate mixed developments across sectors, with services showing improvement while retail, construction, and consumer sentiment remain under pressure. Economic performance in the coming period will depend on the balance between external risks and domestic conditions.

Cyprus Ranks Among EU Leaders In Tertiary-Educated ICT Workforce

by THEFUTURE.TEAM

High Educational Attainment Sets Cyprus Apart

Recent data from Eurostat showed that Cyprus is expected to rank among the leading European countries for tertiary-educated ICT professionals in 2025. According to the figures, 96.4% of ICT professionals in Cyprus are projected to hold tertiary education qualifications, placing the country among the highest-ranked members of the European Union.

Gender Disparity Remains A Critical Challenge

Despite the high level of educational attainment, the ICT workforce in Cyprus continues to show a significant gender imbalance. Men are projected to account for 85.1% of ICT employees in 2025, while women are expected to represent 14.9% of the sector. In 2024, the split stood at 70.9% for men and 29.1% for women. The figures highlighted a widening gender gap within the country’s ICT workforce.

European Union Trends And Comparative Analysis

Across the European Union, the number of ICT professionals is projected to increase to 3.4 million in 2025 from 3.2 million in 2024, representing annual growth of 5.1%. Men are expected to account for 83.4% of ICT employment across the bloc, equivalent to approximately 2.8 million workers, while women are projected to represent 16.6%.

National Performance Variability In Gender Representation

Countries within the EU show a varied landscape: the highest percentages of male ICT professionals are reported in the Czech Republic (92.9%), Slovenia (89.1%), Latvia (89.0%), Lithuania (88.9%), and Slovakia (88.4%). On the contrary, nations such as Denmark (30.0%), Sweden (29.8%), Romania (28.6%), Bulgaria (25.6%), and Croatia (25.2%) lead in female participation in the ICT arena.

Educational Background Across The European ICT Sector

Eurostat data also showed that most ICT professionals across the EU hold tertiary education qualifications. By 2025, 74.8% of ICT workers in the bloc are projected to have university-level education, while 25.2% are expected to hold secondary or post-secondary qualifications. Denmark recorded the highest share of tertiary-educated ICT professionals at 97.7%, followed by France at 96.6% and Cyprus at 96.4%. Other countries with high levels of tertiary-educated ICT workers included Ireland at 92.3%, Bulgaria at 91.1%, and Croatia at 90.9%. At the lower end of the ranking, Italy recorded 69.2%, while Portugal stood at 58.8%.

Conclusion

The data perfectly encapsulates the dual narrative in the ICT sector: while countries like Cyprus and Denmark achieve remarkable educational standards among ICT workers, persistent gender disparities remind us that diversity remains an ongoing challenge. As the ICT landscape continues to evolve, strategic policy formation and corporate governance will be pivotal in balancing excellence with inclusivity.

Uol
Aretilaw firm
eCredo
The Future Forbes Realty Global Properties

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter