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Extreme Heat Could Cost Cyprus Up To €3.8 Billion By 2050

Heatwaves Threaten Productivity

Extreme heat could cost Cyprus between €2.3 billion and €3.8 billion by 2050 unless workplaces are adapted to cope with rising temperatures, according to a new study by the Cyprus Institute released on Wednesday.

Increasingly frequent and intense heatwaves could force employees working outdoors or in poorly cooled environments to reduce their working hours or stop work altogether during unsafe conditions.

The research focused on sectors including construction, agriculture and tourism, where workers are particularly exposed to high temperatures and direct sunlight.

Economic Losses Expected To Grow

Comparing future projections with conditions recorded between 1980 and 2020, researchers found that employees are likely to face a growing number of days when temperatures exceed safe limits for normal work.

Lost working hours and lower productivity could cost the economy around €101 million by 2030, with annual losses rising to approximately €303 million by 2050.

Without measures to protect workers and adapt workplaces, the cumulative economic impact over the next 25 years could reach between €2.3 billion and €3.8 billion, the study estimates.

Researchers Call For Workplace Adaptation

Professor Theodore Zachariades, one of the study’s authors, said the research is the first to quantify the economic impact of lost working hours caused by extreme heat using Cyprus-specific data.

He warned that the financial burden would increase as very hot days become more frequent and prolonged in the years ahead. According to Zachariades, workers most exposed to high temperatures could also face serious health risks, highlighting the need for measures that protect both their wellbeing and their ability to work.

The Cyprus Institute said the findings underscore the importance of reducing the impact of rising temperatures on employees and the wider economy.

Cyprus Loan Growth Accelerates To 14% In September

Lending in Cyprus accelerated in September, with the annual growth rate of total loans reaching 14%, up from 11.8% in August. Deposits also recorded a stronger monthly increase, according to the Central Bank of Cyprus (CBC).

Total deposits rose by a net €697.1 million to €60.2 billion at the end of September. Total loans increased by €857.8 million to €29.6 billion, according to the CBC’s October 2026 Monetary and Financial Statistics.

Deposit Growth Strengthens

Deposits recorded a monthly increase of €697.1 million, more than four times the €171.5 million rise in August. However, the annual growth rate remained unchanged at 6.5%.

Deposits held by Cyprus residents increased by €639.9 million. Household deposits rose by €93.8 million, while deposits held by non-financial corporations grew by €373 million. Other domestic sectors contributed a further €173.1 million.

Annual Loan Growth Reaches 14%

Total loans increased by a net €857.8 million in September, compared with €114.6 million in August. The annual growth rate accelerated to 14%, up from 11.8% a month earlier.

Lending to Cyprus residents rose by €470.8 million. Loans to households increased by €52.2 million, while lending to non-financial corporations grew by €110.1 million. Other domestic sectors recorded a larger increase of €308.5 million.

The figures cover deposits and loans held by monetary financial institutions in September 2026.

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