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Cyprus Readies For Economic Growth Amid Major Infrastructure Investments And Rising Exports

The Central Bank of Cyprus projects economic growth between 2026 and 2028, supported by private infrastructure investment and export activity. Christodoulos Patsalides presented the outlook in the bank’s 2025 annual report.

Robust Economic Forecast

The report outlines baseline projections assuming a gradual de-escalation of geopolitical tensions. Growth is expected to slow from 3.8% in 2025 to 2.7% in 2026, before rising to 2.9% in 2027 and 3.1% in 2028. Inflation is projected to stabilize around 2% over the medium term under this scenario.

Inflation And Policy Outlook

Inflation is forecast at 2.7% in 2026, driven by higher energy, food, and input costs. Price growth is expected to ease to 2% in 2027 and increase slightly to 2.2% in 2028. The increase in 2028 reflects the impact of the expanded Emissions Trading System (ETS2) on fuel prices.

Infrastructure Investments And Export Drive

Christodoulos Patsalides said private infrastructure investment and export growth in services, including technology and finance, are expected to support domestic demand. Higher disposable income and labor market conditions are expected to support consumption. Tourism activity is projected to decline in 2026, with recovery expected from 2027.

Banking Sector Resilience And Governance Modernization

The banking sector reports non-performing loans at 1.6%, compared with the EU average of 1.8%. Capital and liquidity indicators remain within regulatory requirements. The Central Bank is considering changes to its governance structure, including a collective model aligned with European practices.

Outlook For Growth And Stable Labour Markets

GDP is supported by private consumption and investment, according to the report. Public finances show public debt below 60% of GDP, alongside improved credit ratings from international agencies. Unemployment is projected to stabilize at around 4.5% between 2026 and 2028, reflecting current labour market conditions.  Christodoulos Patsalides, Governor of the Central Bank of Cyprus, outlined structural reforms and policy measures aimed at maintaining price stability and supporting economic activity.

Meta Unveils Muse Wonder Models In A Bid For Frontier AI Leadership

Meta has introduced two new AI models, Muse Wonder and Muse Wonder Full, signalling a more ambitious move into frontier AI. The releases build on Muse Spark but target more demanding tasks, including coding, while placing greater emphasis on long-term memory and personalised assistance.

Larger Models Target More Demanding Tasks

Unlike Muse Spark, which was designed for low latency and lightweight use, Muse Wonder and Wonder Full are significantly larger and, according to Meta, more capable. The company reports stronger benchmark performance and improvements on demanding workloads, including coding.

According to Meta’s model card, both models achieved benchmark results comparable to Fable 5.1 and GPT-6 Astra in the company’s internal testing. Meta described the release as “the next step on our scaling ladder and a major leap toward personal superintelligence” in its announcement.

Pricing Reflects Meta’s Frontier Ambitions

The models’ pricing places them in the premium AI segment. Through the Meta Model API, Muse Wonder will cost $4 per million input tokens and $20 per million output tokens, putting it in a similar pricing tier to GPT-6 Sol and Opus 5.5.

Muse Wonder Full, by contrast, will not be offered through the API. Meta says it will be exclusive to Muse Code subscribers, tying access to its most advanced model to a premium product. Both models will also power the Muse agent.

Long-Term Memory Takes Centre Stage

Meta is increasingly positioning its AI strategy around assistants that can support users over time rather than respond only to individual prompts. A central part of that approach is what the company calls “active memory”: the ability to retain, organise and synthesise information provided by users across extended periods.

Meta points to the MemoryBench benchmark, which evaluates systems designed for continual learning and memory construction. The company says Muse Wonder now outperforms Fable, Opus and Astra on this measure.

“We put a tremendous amount of effort into making sure your model can remember what’s important to you over days, weeks, months, and beyond,” research scientist Kavya Kopparapu said in a launch video.

New Models Follow Meta’s AI Reorganisation

The launch is also significant within Meta’s broader AI strategy. It is the company’s first frontier-model release since Scale AI founder Alexandr Wang reorganised its AI operations in August 2025. Meta has since introduced Muse Spark and the Muse agent, while making fewer high-profile model announcements than competitors such as OpenAI and Anthropic.

The new models were trained at Meta’s Prometheus data centre in central Ohio, which came online earlier in 2026, according to the company. The facility highlights the growing importance of infrastructure in the race to develop advanced AI systems, where performance depends not only on algorithms and data but also on computing capacity, data-centre investment and access to capital.

As competition intensifies, Muse Wonder and Wonder Full represent a broader bet on larger models, persistent memory and premium AI products. Their longer-term significance will depend on how their reported capabilities translate into real-world performance and whether users find enough value to pay for access.

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