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Cyprus Economic Outlook Strengthens With Revised Growth Projections

The European Commission’s latest economic forecast has raised Cyprus’ growth projection for 2025 to 3.4 per cent, a revision that reflects the enduring resilience and dynamic progress of the island nation even amid persistent geopolitical challenges. Finance Minister Makis Keravnos hailed the findings as a testament to Cyprus’ steady economic advancement and the strength of its fundamentals.

Robust Policy and Strategic Reforms

In an official statement, Keravnos emphasized that the upward revision by 0.4 percentage points from the spring forecast is especially encouraging. The Finance Minister pointed to the government’s consistent economic policy, which is paving the way for a sustainable, outward-looking, and socially inclusive growth model. The report also noted a modest upward adjustment for 2026—now forecast at 2.6 per cent—positioning Cyprus third in the Eurozone behind Ireland and Malta.

Foundations of Stable Growth

The revised projections underscore a broader vote of confidence in Cyprus’ economic strategy. Keravnos highlighted that the steady progress is driven by a measured and responsible fiscal approach, with ongoing reforms such as an anticipated tax overhaul aimed at boosting incomes, attracting high-quality investments, and fortifying the economy’s competitive edge. This aligns with the government’s commitment to stability, planning, and fiscal prudence.

Wider Economic Landscape

The comprehensive outlook from the European Commission projects domestic demand as the primary engine for growth, with household consumption moderating as real wage growth decelerates. Meanwhile, increased investment backed by the completion of projects under the Recovery and Resilience Plan (RRP) is expected to propel economic activity in 2026. Services exports are anticipated to remain robust, bolstering the overall growth narrative.

Inflation, Labour Market And Public Finances

Inflation is projected to ease, with headline rates falling to 0.9 per cent in 2025 before gradually rising to 1.9 per cent by 2027. Although core inflation will remain slightly elevated, medium-term expectations suggest it will stabilize slightly below 2 per cent. Labour market indicators remain strong, with unemployment expected to stabilize at 4.7 per cent in 2025 before easing further in subsequent years. Additionally, public finances are on a firm footing, with the government balance forecast to be in surplus at 3.3 per cent of GDP in 2025 and with public debt decreasing steadily to 45.7 per cent of GDP by 2027.

Conclusion

The upgraded economic forecast not only reinforces the confidence of European institutions in Cyprus but also validates the government’s strategic initiatives and reforms. As the island economy continues on its resilient path, stakeholders can look forward to a period of stable growth, sound fiscal management, and progressive economic transformation.

SEC Drops Lawsuit Against Gemini: A Major Turning Point In Crypto Regulation

SEC Dismisses Legal Action Against Gemini

The Securities and Exchange Commission has formally withdrawn its lawsuit against Gemini, the prominent crypto exchange founded by twins Cameron and Tyler Winklevoss. The move follows a joint court filing in which both the regulator and Gemini sought dismissal of the case that centered on the collapse of the Gemini Earn investment product, a debacle that left investors without access to their funds for 18 months.

Settlement And Regulatory Reassessment

In a significant development, a 2024 settlement between New York and Gemini ensured that investors recovered one hundred percent of their crypto assets loaned through the Gemini Earn program. The legal reprieve comes on the heels of actions initiated by New York Attorney General Letitia James, who accused Gemini of defrauding investors.

Political Backdrop And Industry Implications

This dismissal reinforces a broader trend of regulatory leniency toward the crypto sector noted during the Trump administration, which saw the SEC dismiss, pause, or reduce penalties in more than 60 percent of its pending crypto lawsuits. Meanwhile, Gemini’s recent public offering filing underscores its ambitions to solidify its status as a major player in the evolving digital asset market.

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