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Cyprus Economy: Strong Growth Ahead Despite Structural Challenges

Cyprus is poised to sustain strong economic growth in the coming years, according to a recent report from the Canadian rating agency Morningstar DBRS. The agency also predicts a steady decline in unemployment, which is expected to bolster the nation’s fiscal performance.

Despite these positive projections, the report highlights persistent hurdles facing the Cypriot economy. As a small, service-driven market, Cyprus remains highly susceptible to external shocks. Additionally, while strides have been made to reduce non-performing loans (NPLs), their levels still exceed the Eurozone average. Challenges in labour market productivity further restrict the nation’s economic potential.

On a brighter note, progress in addressing NPLs has been significant. Data from the Central Bank of Cyprus show that NPL ratios in approved credit institutions dropped to 6.8% in August 2024, a dramatic reduction from 43.7% at the end of 2017. This improvement represents an €18.9 billion decrease in absolute terms.

Morningstar DBRS anticipates this downward trajectory to persist but acknowledges that eliminating the remaining NPLs will require time. By mid-2024, credit acquisition companies managed exposures of approximately €21 billion, with 94% classified as non-performing.

The report also notes delays faced by KEDIPES, the state-owned asset management company. Challenges such as foreclosure moratoriums, the COVID-19 pandemic, and geopolitical tensions have pushed the company’s operational deadline to 2030.

Housing prices, meanwhile, have shown sustained growth. As of Q2 2024, property prices in Cyprus rose by an annual rate of 8.0%, with house prices increasing by 6.2% and apartment prices surging by 12.0%. Most of the real estate collateral tied to NPLs consists of residential properties, with Nicosia and Limassol identified as the most stable markets on the island.

While structural vulnerabilities persist, Morningstar DBRS’s analysis underscores Cyprus’ resilience and ability to adapt. Continued efforts to address NPLs, coupled with a robust housing market and improved employment metrics, suggest the nation is on a steady path toward economic stability and growth.

OpenAI Says It Banned Russian ChatGPT Accounts Used In A Covert Influence Campaign

OpenAI said it has banned a cluster of ChatGPT accounts originating in Russia after identifying their use in a covert online influence campaign designed to spread misinformation.

The company said it uncovered the activity while reviewing AI-generated social media posts, a probe that ultimately revealed what it described as a far broader operation. In a blog post published Tuesday, OpenAI said the campaign was built around a website featuring copied and misattributed academic work, a so-called sovereignty index that portrayed Russia favorably, and efforts to conceal the operators’ Russian origins.

A Broader Playbook For Influence Operations

The case underscores how generative AI is increasingly being used as an enabling tool in information operations, not merely as a content generator. According to OpenAI, the operators prompted ChatGPT in Russian to produce social media comments and posts that were later distributed across Substack, Telegram, X, Facebook and LinkedIn. The same operators also instructed the model to obscure linguistic clues that could reveal their identity or geographic origin.

OpenAI said the campaign centered on an organization called the International Burke Institute, or IBI. The institute’s website, the company said, featured articles copied from real academic sources, sometimes with false attribution. It also included a “sovereignty index” that praised Russia and criticized Western countries.

Why The Infrastructure Mattered More Than The Reach

While OpenAI said the immediate reach of the operation appeared limited, it stressed that the real significance lay in the infrastructure the operators had assembled. The campaign presented an apparently credible institution, complete with named experts, republished research and a proprietary risk index—elements that can be used to manufacture legitimacy at scale.

That distinction matters. In modern influence campaigns, credibility is often the product, not the byproduct. A polished website, a pseudo-academic veneer and coordinated social distribution can make false narratives appear institutional, even when the audience remains relatively small.

OpenAI said the episode illustrates how influence actors can use AI to support broader efforts to obscure authorship, build trust and elevate preferred narratives. It also noted that the use of AI can, paradoxically, expose the operation itself when the supporting infrastructure is scrutinized.

Part Of A Pattern Of Pro-Russia Activity

This is not the first time OpenAI has moved against accounts linked to pro-Russia activity. In February, the company said it shut down ChatGPT accounts associated with Rybar, a pro-Russia media organization that the U.K. government has described as partially coordinated by the Russian Presidential Administration and connected to Russian state interests.

OpenAI said it does not permit access to its models from Russia, but added that the operators in this case used VPNs to mask their location. CNBC has contacted the Russian embassy in London and Russia’s Foreign Ministry for comment.

The broader lesson for businesses, governments and platforms is clear: the next generation of influence campaigns may not rely on volume alone. They will rely on process, polish and the strategic use of AI to create the appearance of authority.

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