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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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Cyprus Ranks Among EU Leaders In Tertiary-Educated ICT Workforce

High Educational Attainment Sets Cyprus Apart

Recent data from Eurostat showed that Cyprus is expected to rank among the leading European countries for tertiary-educated ICT professionals in 2025. According to the figures, 96.4% of ICT professionals in Cyprus are projected to hold tertiary education qualifications, placing the country among the highest-ranked members of the European Union.

Gender Disparity Remains A Critical Challenge

Despite the high level of educational attainment, the ICT workforce in Cyprus continues to show a significant gender imbalance. Men are projected to account for 85.1% of ICT employees in 2025, while women are expected to represent 14.9% of the sector. In 2024, the split stood at 70.9% for men and 29.1% for women. The figures highlighted a widening gender gap within the country’s ICT workforce.

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European Union Trends And Comparative Analysis

Across the European Union, the number of ICT professionals is projected to increase to 3.4 million in 2025 from 3.2 million in 2024, representing annual growth of 5.1%. Men are expected to account for 83.4% of ICT employment across the bloc, equivalent to approximately 2.8 million workers, while women are projected to represent 16.6%.

National Performance Variability In Gender Representation

Countries within the EU show a varied landscape: the highest percentages of male ICT professionals are reported in the Czech Republic (92.9%), Slovenia (89.1%), Latvia (89.0%), Lithuania (88.9%), and Slovakia (88.4%). On the contrary, nations such as Denmark (30.0%), Sweden (29.8%), Romania (28.6%), Bulgaria (25.6%), and Croatia (25.2%) lead in female participation in the ICT arena.

Educational Background Across The European ICT Sector

Eurostat data also showed that most ICT professionals across the EU hold tertiary education qualifications. By 2025, 74.8% of ICT workers in the bloc are projected to have university-level education, while 25.2% are expected to hold secondary or post-secondary qualifications. Denmark recorded the highest share of tertiary-educated ICT professionals at 97.7%, followed by France at 96.6% and Cyprus at 96.4%. Other countries with high levels of tertiary-educated ICT workers included Ireland at 92.3%, Bulgaria at 91.1%, and Croatia at 90.9%. At the lower end of the ranking, Italy recorded 69.2%, while Portugal stood at 58.8%.

Conclusion

The data perfectly encapsulates the dual narrative in the ICT sector: while countries like Cyprus and Denmark achieve remarkable educational standards among ICT workers, persistent gender disparities remind us that diversity remains an ongoing challenge. As the ICT landscape continues to evolve, strategic policy formation and corporate governance will be pivotal in balancing excellence with inclusivity.