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Cyprus GDP to Grow 3.7% in 2024—Here’s What to Expect in 2025-2026

Cyprus’ economy gained momentum in 2024, with real GDP growth revised up to 3.7%, an upward adjustment of 0.2 percentage points, according to the latest Economic Outlook from the Economics Research Centre (CypERC) at the University of Cyprus. Growth is projected to remain solid but moderate in the coming years, with forecasts of 3.3% in 2025 and 3% in 2026.

Economic Drivers Behind The Growth

The upward revision is attributed to stronger-than-expected performance in Q3 2024, alongside positive economic indicators in Q4. The labour market’s resilience, disinflationary trends, and monetary policy easing in the eurozone have further bolstered the outlook.

Other forecasts align with this trajectory. The Central Bank of Cyprus estimates 3.7% GDP growth in 2024, while the European Commission projects 3.6%. Looking ahead to 2025, both institutions anticipate a deceleration, with the Central Bank forecasting 3% and the European Commission predicting 2.8%. In 2026, the Central Bank expects a slight uptick to 3.1%, whereas the European Commission foresees a continued slowdown to 2.5%.

Inflation And Market Conditions

Inflation is expected to remain subdued, with CPI inflation forecast at 1.7% in 2025, a 0.4 percentage point drop from previous estimates due to lower-than-expected inflation in late 2024. For 2026, inflation is projected to edge lower to 1.6%.

Key factors shaping the inflation outlook include:

  • Falling international oil prices
  • A slowdown in inflation during H2 2024
  • Restrictive financing conditions
  • Lower selling price expectations, particularly in services

Risks And Uncertainties

CypERC highlights downside risks to the growth outlook, particularly amid rising geopolitical tensions and uncertainties in global trade policies. Conversely, inflation risks remain tilted to the upside, as external shocks and supply chain disruptions could drive price pressures higher.

As Cyprus navigates 2025 and beyond, the economy remains on a steady expansion path, though global and regional developments will play a crucial role in shaping its trajectory.

Europe’s Deadly Summer Heat Exposed The Cost Of A Warming Continent

Europe experienced its deadliest summer for heat-related deaths on record in 2026, with an estimated 24,400 excess deaths linked to extreme temperatures across 30 countries. Researchers estimate that human-induced climate change was responsible for around 32,000 of the deaths attributed to heat in the study’s broader analysis, accounting for 65% of the total.

The findings highlight the growing public-health consequences of global warming, largely driven by fossil fuel use, as extreme heat becomes more frequent and severe.

A Summer Of Dangerous Heat

Between June and August, heatwaves pushed temperatures in Western Europe to an average of 2.9°C above the 1991–2020 norm, with some days reaching 12°C above average. Nearly a third of estimated heat-related deaths occurred during a particularly intense heatwave between 17 June and 1 July.

“These numbers are a stark reminder that our hotter, more extreme summers are having an increasingly severe impact on public health,” said Dr Clair Barnes, a researcher at Imperial College London and co-author of the study.

The estimated toll exceeded previous peaks of around 29,000 deaths in summer 2022 and 28,000 in 2003 across the region studied.

How Researchers Estimated The Toll

Researchers modelled the relationship between temperature and mortality across 854 urban areas in the EU, UK, Norway and Switzerland, covering around 40% of the population in the 30 countries studied.

The analysis incorporated temperature records, age, socioeconomic conditions, environmental factors and access to healthcare. By comparing actual temperatures with those expected without human-induced warming, the team estimated the additional deaths attributable to climate change.

Final official mortality figures for summer 2026 are not yet available in many countries, and heat-related deaths are often underreported because their effects can be difficult to identify directly.

Older People Face The Greatest Risk

People aged 85 and over accounted for roughly half of the estimated deaths. However, the impact extended across age groups, with around 800 excess deaths among adults aged 20–44 and approximately 6,000 among people under 65.

Southern Europe experienced the highest mortality burden, reflecting hotter temperatures and other vulnerabilities, including air pollution, limited green space and unequal access to healthcare and heat-alert systems.

Italy, France And Spain Record Highest Toll

Italy recorded an estimated 13,303 heat-related excess deaths, followed by France with 7,268 and Spain with 6,824. Germany recorded around 6,340, while the UK saw an estimated 4,354 deaths.

In the UK, the heat also placed significant pressure on healthcare services. Andrew Hartle, Professor of Practice of Anaesthesia at Imperial College Healthcare, said demand during the summer resembled that of a severe winter virus season.

Cities Urged To Strengthen Heat Protection

Researchers say cities can reduce the risks through climate shelters, external shading and building retrofits, alongside measures to help residents avoid exposure during the hottest hours. Checking on vulnerable people, staying hydrated and following heat alerts are also important.

The researchers stress that adaptation must go hand in hand with reducing fossil fuel use to limit further warming. The findings underline that extreme heat is already a major public-health threat across Europe, with thousands of lives at risk each summer.

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