Cyprus Welcomes ECB’s Interest Rate Cut, Calls For Swift Bank Response

by THEFUTURE.TEAM

February 3, 2025

Cyprus’ Finance Minister Makis Keravnos has expressed satisfaction with the European Central Bank’s (ECB) decision to lower key interest rates by 0.25%, calling it a positive development for the European and Cypriot economies.

In a statement on Friday, Keravnos highlighted that the rate cut aligns with economic conditions in Cyprus, where inflation stood at 1.8% in 2024. He emphasized that this move is expected to ease financial conditions and support growth.

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However, the Minister also urged Cypriot banks to act without delay in lowering their interest rates, in line with the ECB’s decision. He reminded banks of their commitment during recent meetings with the Finance Ministry to swiftly adjust rates in response to ECB policy changes.

The ECB’s latest cut marks a shift in its monetary policy stance, aimed at stimulating lending and economic activity amid easing inflation pressures across the Eurozone. The Cypriot government now looks to domestic financial institutions to follow suit and pass on the benefits to businesses and households.

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Cyprus Services Sector Shows Robust Performance In 2025 As Tourism, Digital Innovation, And Shipping Surge

by THEFUTURE.TEAM

April 6, 2026

The Employers and Industrialists Federation (OEV) reported growth across Cyprus’ services sector in 2025, with increases recorded in tourism, professional services and administrative activities. Data show continued expansion across multiple sub-sectors, reinforcing the role of services in economic output and employment.

Service Sector Leadership

Accommodation and food services grew by 9.5%, while administrative and support activities increased by 7.4%. Professional, scientific and technical activities rose by 4.6%, followed by information and communication at 4.3%. Transport and storage recorded growth of 2.8%, while real estate activity increased by 0.4%. These figures indicate broad-based expansion across service industries.

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A Remarkable Tourism Surge

Tourist arrivals reached 4,534,073 in 2025, marking a 12.2% increase year-on-year. December arrivals totaled 156,959, up 18% compared with the same period a year earlier. Tourism continues to support revenue generation and seasonal demand across the economy. Growth in visitor numbers contributes to activity in hospitality and related sectors.

Driving Digital Transformation

OEV is supporting digital adoption through initiatives such as the DiGiNN Cyprus Digital Innovation Hub. The program focuses on improving business processes, skills development and technology integration. Additional efforts include the establishment of a Digital Transformation and Innovation Committee and international engagement through business missions. These actions support the adoption of digital tools across sectors.

Resilient Shipping Sector

Shipping accounted for about 7% of Cyprus’s GDP in 2025, remaining a key component of the economy. The Cyprus Registry recorded its highest tonnage in 20 years, with an increase of nearly 20%. Fleet growth strengthens Cyprus’ position within European Union shipping registries and global maritime markets. The sector continues to contribute to economic stability.

Strengthening The Economic Foundation

OEV is organizing conferences, workshops and exhibitions to support business development across sectors. These initiatives focus on improving operational practices and industry collaboration. Continued investment in services and digital infrastructure is expected to support economic performance.

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