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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.

Anthropic’s Opus 5.5 Arrives With Lower Costs, Faster Performance And Sharper Safety Guardrails

Anthropic on Tuesday unveiled Opus 5.5, its latest flagship model and, by the company’s account, a new state of the art in coding and knowledge work.

Opus remains the top tier in Anthropic’s three-model Claude family, positioned above Sonnet and Haiku, which serve the middle and entry-level segments respectively. The company says the new release not only outperforms the larger Fable model on several benchmarks, but also completed a number of informal tasks that Fable could not finish.

A More Efficient Frontier Model

One of the most notable changes is economic, not just technical. Anthropic says output tokens for Opus 5.5 will be priced at $20 per million, down from $25 for the previous version. Other usage metrics have also declined, and the model is faster to run, reflecting lower compute requirements to serve it.

That matters because model economics are increasingly central to enterprise adoption. In practice, a more capable model is only part of the equation; speed and cost often determine whether it can be deployed at scale across software development, research, customer operations, and internal knowledge workflows.

Sharper Communication, Less Jargon

Anthropic says the update also changes how Opus communicates. The new model is less likely to lean on jargon and more likely to lead with the most important information first. For business users, that is more than a stylistic adjustment. It improves readability, reduces friction in decision-making, and makes AI output easier to use in executive settings where time is scarce and clarity matters.

A Rapid Follow-Up To Opus 5

The launch comes just two months after the debut of Opus 5 on July 24. Anthropic said Sonnet 5.5 and Haiku 5.5, the next models in the lineup, will follow “in the coming weeks,” with similar performance gains expected.

Safety Remains Central To The Release

Anthropic says Opus 5.5 is comparable to Mythos in biology and cybersecurity capabilities, which means the model is subject to the same safeguards as the company’s Fable model. Those restrictions limit the model’s use in areas such as discovering exploits in compiled programs or developing recognizable biological weapons, among other sensitive tasks.

The release is also notable because it is Anthropic’s first since CEO Dario Amodei publicly embraced calls to pace the frontier, a strategy designed to slow the rate of capability gains so alignment and safety measures can catch up. In a recent post, Amodei wrote: “I have become convinced that fully addressing the risks requires even more prudence, not just investing in risk prevention, but pacing the rate of capabilities advancement so that risk prevention has time to keep up.”

Preparing The Next Layer Of Oversight

Anthropic said Opus 5.5 underwent safety training broadly similar to earlier models, including alignment testing and pre-release evaluation by external groups such as METR and Frontier Design. At the same time, the company said it is already building more advanced training and evaluation systems for future releases, including stronger security and monitoring infrastructure.

“As AI becomes more capable, public policy should play a larger role in making sure the systems people rely on are safe,” the company wrote in its announcement. “That capacity takes time to build, and we’ve started to put the infrastructure in place to support it. We expect to share more details on these efforts soon.”

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