Breaking news

Cyprus Economy Shows Strength, But Structural Weaknesses Remain A Growing Risk According to Report

by THEFUTURE.TEAM

September 25, 2026

Cyprus has built a reputation for resilience. Even amid external shocks, the economy continues to post solid growth, maintain low unemployment and preserve a healthy fiscal position. But beneath those headline figures, the Fiscal Council says there are vulnerabilities that could become costly if left unaddressed.

Growth And Fiscal Performance Remain Solid

Presenting the council’s 2026 interim report, chairman Andreas Charalambous said gross domestic product expanded by 3.8% in 2025, with growth projected at 3% this year. In the council’s assessment, that is “very satisfactory under the circumstances.”

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

The public finances also remain on a constructive path. Cyprus recorded a budget surplus of 3.4% in 2025, while public debt fell to 55% of GDP, comfortably below the 60% benchmark.

Labour market conditions have likewise remained favourable. Unemployment stood at 4.4% last year and eased further to 3.6% in the first half of this year, reinforcing the picture of a broadly stable economy.

Migration And Foreign Investment Have Supported Expansion

The Fiscal Council said Cyprus has benefited from migration inflows in recent years, as well as from foreign companies establishing operations on the island. That combination has supported job creation, lifted household incomes and consumption, and strengthened the services export sector.

Foreign corporations have played an important role in deepening the economy’s activity base. They bring employment, business spending and a wider flow of services exports, all of which help sustain growth in a small, open economy such as Cyprus.

But the council also warned that this support has limits. Migrants now account for more than 20% of the population, and possibly as much as 30%, while demographic ageing has reduced the share of people of working age.

That means future growth cannot rely simply on more workers or higher employment participation. According to the council, the real constraint is productivity — and Cyprus does not perform well on that front.

Inflation And Energy Dependence Expose New Pressures

On the negative side, inflation rose sharply in 2026, putting the greatest strain on low-income households. Although much of the inflation is imported and tied to geopolitical developments, Charalambous said Cyprus also bears responsibility because of its slow transition to green energy.

“Reliance on conventional forms of energy keeps energy costs high, rendering the economy more susceptible to international crises,” he said.

The country’s dependence on imported fuel is also weighing on the external balance. Despite solid performance in services and tourism, Cyprus remains in current account deficit, with higher oil prices amplifying the pressure.

Public Investment And Project Execution Remain Weak Points

The Fiscal Council also pointed to long-standing weaknesses in public finances that are not always visible in headline economic data but become clearer over time.

One of the most persistent problems is low public investment. Although annual state budgets set ambitious targets, execution remains weak. In the first half of 2026, implementation of government-backed development projects reached only 25%.

That, the council said, reflects limited administrative capacity and ongoing difficulties in designing and delivering large-scale projects. A separate assessment by the University of Cyprus also found that absorption of funds from the Recovery and Resilience Facility remains low.

Social Spending And Major Projects Need Closer Scrutiny

Charalambous also argued that social spending is not sufficiently targeted. “Essentially, Guaranteed Minimum Income is the only social expenditure granted according to strict means-testing,” he said.

The council urged caution on major planned projects, including the electrical interconnection with Greece and Israel and the long-delayed LNG terminal at Vasiliko. Both could require significant public spending, raising the stakes for the state budget.

There are also medium-term risks in the pension system. Charalambous noted that roughly four workers currently support one pensioner, but that ratio could fall to 2:1 in the future, creating a potential sustainability problem for the social insurance fund.

The Central Message: Strength Today, Risk Tomorrow

The report’s central message is straightforward: Cyprus is in a relatively strong position today, with the fiscal and economic room to absorb future shocks. But that cushion will hold only if the country confronts its structural weaknesses in time.

If it does not, the council warned, those weaknesses could gradually turn into fiscal costs and erode the economy’s current positive trajectory.

The Future Forbes Realty Global Properties

Meta’s Muse Charm Is More Than A Gimmick — It’s A Bet On Fashionable AI

by THEFUTURE.TEAM

September 25, 2026

Meta’s newly announced Muse Charm is already prompting a familiar question: is this a clever attempt to make AI feel more approachable to mainstream consumers, or simply the latest entry in a growing graveyard of flashy hardware that failed to catch on?

Early reactions have been mixed. But one thing is clear: the form factor is timely. In a market increasingly shaped by aesthetics, personalization, and nostalgia, the Charm arrives with the right visual language for the moment.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

A Device Designed For A Generation That Likes To Carry Its Personality

For Gen Z consumers, especially, the idea of technology as an accessory is hardly far-fetched. In the post-Labubu era, dangling objects have become cultural currency — from keychains and mini plush toys to beauty products reimagined as bag charms. The appeal is not purely decorative. These items function as signals of identity.

That is precisely why the Charm may resonate. Like the beauty-bag charm trend seen across products such as lip glosses, hand sanitizers, and fragrances, the Muse Charm blends utility with self-expression. It is not just a device. It is a style object.

Hailey Bieber’s Rhode lip case helped push that idea into the mainstream by turning a lip product into something closer to a fashion accessory. The brand’s commercial success underscored how powerful that overlap can be: beauty and utility are no longer separate categories, but increasingly part of the same consumer logic.

The same goes for Labubu, the fuzzy collectible that evolved from niche toy to global phenomenon. While demand for the character may have cooled, the broader bag-charm category has not. Analysts now expect the global market for these accessories to surpass $1 billion by 2030.

The Charm Fits A Wider Retro-Tech Revival

Meta’s Muse Charm also taps into a broader retro-tech movement that has been gaining momentum. Digital cameras, flip phones, iPods, CDs, cassette tapes, wired earbuds, and even landline phones are all finding new life among younger consumers who are increasingly skeptical of always-on, algorithmically optimized technology.

That skepticism has created room for objects that feel tangible, controllable, and personal. For many young people, especially women driving a great deal of this trend, physical tech offers something the digital world often does not: a sense of ownership.

That is part of the appeal behind the growing popularity of so-called cyberdecks, DIY portable computers that are often decorated with jewels, flowers, stickers, pearls, and other embellishments. The point is not just function. It is intimacy.

The Apple Watch Trend Shows The Market Already Exists

There is another, more immediate reference point for Muse Charm: the growing TikTok-driven trend of turning older Apple Watches into keychains, pendants, and bag accessories. Across Amazon, Walmart, eBay, and Etsy, thousands of such products already exist, ranging from practical straps to decorative cases.

In many cases, these items are being worn less as gadgets and more as fashion objects. That distinction matters. It suggests the market is already primed for devices that blur the line between technology and accessory — especially when the technology is small enough to personalize and visible enough to signal taste.

In that sense, Meta is not inventing a new behavior so much as trying to package an existing one.

Meta’s Biggest Challenge Is Not Design. It Is Trust.

Still, good timing does not guarantee success. The biggest obstacle facing Muse Charm may not be product-market fit, but Meta itself.

The company has spent years eroding consumer trust through repeated privacy controversies, regulatory penalties, and public scrutiny over harms to minors. That history is difficult to separate from any new device that asks users to invite Meta even deeper into their daily lives.

And that is the central tension. If Muse Charm is positioned as a free or low-cost AI companion, the real currency may not be the hardware itself but the data it generates. Meta has said it plans to monetize Muse through a small transaction fee, but the broader business model is unmistakable: highly personalized advertising powered by highly personal behavior.

For consumers, the calculation may come down to a familiar tradeoff. The device may be playful, fashionable, and culturally on point. But whether users are willing to trust Meta with another layer of their lives is a far harder question.

That may ultimately determine whether Muse Charm becomes a breakout product — or just another well-designed gadget that could not overcome the baggage of the company behind it.