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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.

Netflix Shares Fall As Growth Concerns Overshadow Strong Quarterly Results

Netflix shares fell more than 5% on Tuesday after the streaming giant’s latest quarterly results failed to ease investor concerns about slowing audience engagement and decelerating revenue growth.

Investor Focus Shifts From Profitability To Momentum

In a letter to shareholders, Netflix acknowledged concerns about growth in viewing hours, one of its key engagement metrics. “We know there’s some investor concern about our view hours growth,” the company said, adding that it remained “confident” it could accelerate the trend.

Despite its strong profitability, Netflix has struggled to consistently meet market expectations in recent quarters as competition intensifies across streaming, gaming and live sports. John Belton, portfolio manager at Gabelli Funds, said the company “has underperformed significantly over the last 6-12 months,” citing softer engagement, slower revenue growth, a more cautious margin expansion outlook and recent changes in content leadership.

Quarterly Results Beat Estimates, But Questions Remain

For the third quarter ended in September, Netflix reported revenue of $12.87 billion and net income of $3.7 billion, both above analyst expectations, according to FactSet.

The company did not disclose total viewing hours for the quarter but reported that viewing in India increased 24% year on year. In July, Netflix said subscribers had watched 97 billion hours of content in the first half of the year, up 2% from the same period in 2025.

Netflix stopped reporting subscriber totals in early 2025, putting greater emphasis on engagement, monetisation and margin expansion as measures of business performance.

International Markets Outpace U.S. Growth

Netflix highlighted stronger performance across international markets while acknowledging that growth in the United States remains slower than it would like.

“We do need better execution in the US. Our content around the world is largely working,” co-CEO Ted Sarandos said during Tuesday’s analyst call, pointing to growth in engagement, subscribers, revenue and profits across Latin America, Europe and Asia.

“The US is also working. It’s just not growing as fast as it could or as fast as we’d like,” he added.

Workforce Cuts And Leadership Changes Signal A Strategic Shift

Netflix is reportedly planning to cut around 6% of its workforce, equivalent to roughly 1,000 jobs, according to media reports. Seven senior employees overseeing television deals and content were among those affected, The Hollywood Reporter reported last week.

The company has also changed leadership in its content division. CNBC reported that Netflix replaced chief content officer Bela Bajaria, who oversaw hit series including Stranger Things, Bridgerton and Squid Game, as well as the company’s expanding live entertainment business. Former Disney executive Peter Rice has been named the new content chief.

“Peter Rice understands talent relations, and in a competitive market, creative talent have choices of where they want to work,” Sarandos said.

Live Sports, Gaming And Advertising Become Growth Priorities

As competition among streaming platforms intensifies, Netflix is expanding beyond traditional on-demand video. It has moved further into live sports, securing deals to stream major events such as the Olympics and the World Cup, while investing in gaming and shorter-form content. The NFL and WWE are also set to stream live events on the platform.

The strategy reflects the need to attract and retain both paying subscribers and audiences supported by advertising. In the United States, Netflix accounted for 7.8% of streaming television viewership in July, compared with 14.2% for YouTube, which reached a record share for the Google-owned platform, according to Nielsen. The World Cup also contributed to higher overall television viewing that month.

Sarandos nevertheless stressed that traditional entertainment remains central to Netflix’s business. “It’s really important to remember, roughly 95% of our spend and nearly all of our revenue is focused on that core, where we see a long runway for future growth,” he said.

Advertising remains another area where the company is seeking stronger results. Netflix said growth in ad revenue fell short of its internal target for the year.

“We are currently a bit behind our aggressive target for the year. We’re still growing,” co-CEO Greg Peters said. He added that the rollout of new products, including additional ad formats, was helping support growth.

Investors Look For Evidence Of Renewed Growth

Netflix remains highly profitable, but its latest results show that strong earnings alone may not be enough to reassure investors. The market is looking for evidence that the company can accelerate viewing engagement, strengthen advertising revenue and improve its growth trajectory in the United States.

How effectively Netflix delivers on those priorities will be key to restoring investor confidence.

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