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Fitch Affirms Cyprus’ Investment Grade Rating With Positive Outlook Amid Fiscal Improvements

by THEFUTURE.TEAM

November 25, 2025

On November 21, 2025, the international ratings agency Fitch confirmed Cyprus’ A‐rating while upgrading the economic outlook from stable to positive. This move, welcomed by the Ministry of Finance, signals potential for further upgrades should the projections in the accompanying report materialize.

Key Drivers Behind The Positive Outlook

Fitch’s decision rests on several critical factors:

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Declining Public Debt: A dramatic reduction in public debt from 2022 to 2025 is expected to persist into 2026–2027, with debt falling below the 60% of GDP threshold (projected at 55.4% in 2025) and even below the EU median.
Sustained Fiscal Surpluses: Ongoing fiscal surpluses are forecast to continue during 2025–2027, estimated at approximately 3.2%, reinforcing fiscal discipline.
Robust Economic Growth: Economic expansion is projected to reach 3.4% in 2025, with growth stabilizing around 3% in the subsequent years, outpacing the eurozone’s expected 1% growth rate.
Strength In The Labor Market: A marked improvement in labor market conditions, with unemployment rates regressing to pre-2009 levels, further supports the positive outlook.

Fitch underscores that the future rating trajectory will depend on the evolution of public finances, macroeconomic trends, and balance-of-payments developments.

Moody’s Periodic Review

The Ministry of Finance also noted that international agency Moody’s recently completed its periodic review without adjusting Cyprus’ credit rating, which remains at A3. Moody’s assessment reflects:

Strong institutional capacity and effective policymaking.
A continued downward trajectory in public debt levels.
Substantial fiscal surpluses maintained by the government.
Diversified economic growth bolstered by varied sectors.
A tourism industry rebounding to pre-pandemic levels with record revenues.
A stable banking sector underpinned by robust capital reserves and liquidity.

However, challenges remain for Cyprus, including its small size, enduring expenditure pressures, and potential banking sector risks should conditions unexpectedly change.

Government Commitment And Strategic Leadership

Cyprus Finance Minister Makis Keravnos applauded the recent ratings updates. In his statement, he attributed the robust performance to the government’s consistent and rational economic policies. He emphasized that Cyprus’ sustained creditworthiness and fiscal discipline have paved the way for further upgrades, reflecting both domestic resilience and international confidence.

Broader Impact And Future Prospects

President Nikos Christodoulides also weighed in, stressing that these favorable credit ratings do more than bolster investor confidence; they translate into tangible societal benefits. Enhanced credit profiles allow Cyprus to secure financing on more attractive terms, promoting developmental projects that stimulate job creation and support higher wage growth. Lower borrowing costs for both households and businesses further contribute to the long-term economic well-being of the country.

In summary, the dual reassurances from Fitch and Moody’s underscore a compelling narrative of disciplined public finances, robust growth, and a commitment to sustainable development. As Cyprus navigates a challenging global landscape, its steadfast governance remains a cornerstone for future prosperity.

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Only 1% Of Cyprus Farms Use Precision Farming Technologies

Cyprus remains one of the European Union’s least digitised agricultural economies, with just 1% of farms using precision farming technologies in 2023, according to Eurostat.

The findings come as the EU continues to encourage the adoption of digital tools aimed at improving agricultural productivity, efficiency and sustainability.

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Internet Access Expands, But Digital Uptake Lags

Internet access has improved across the bloc, although adoption remains uneven. Eurostat found that 43% of EU farms had internet access in 2023, with northern and central European countries leading the way.

Denmark, Germany, Slovakia, Latvia, the Czech Republic and Austria all reported internet access rates above 90%.

Greater connectivity, however, has not translated into widespread digital adoption. Farm management information systems, which help farmers manage day-to-day operations, were used by only about 11% of EU farms. France was a notable exception, with around 60% of farms using the technology.

Precision Farming Concentrated In Larger Operations

Robotics adoption also remained relatively limited, with only about 7% of EU farms using robotic technologies. Overall, around 18% of farms with utilised agricultural area employed at least one precision farming technology or practice in 2023.

These included robotics for plant protection, band spraying, variable-rate application, precision crop monitoring and soil analysis. Despite representing fewer than one in five farms, these holdings accounted for around 44% of the EU’s utilised agricultural area.

The figures suggest that precision farming remains concentrated among larger agricultural businesses, where investment in digital technologies is typically easier to support.

Cyprus Lags Behind EU Leaders

Luxembourg, Finland and Estonia recorded the highest shares of utilised agricultural area managed by farms using precision farming technologies, each exceeding 75%.

At the other end of the ranking, Cyprus recorded just 1%, while Greece and Romania reported between 10% and 15%. The results indicate that Cyprus remains at an early stage of digital adoption in agriculture, even as precision farming becomes more widespread across parts of the European Union.