Navigating the Uncertainties: Cyprus Amidst A Potential Global Trade War

by News Editor

April 13, 2025

Cyprus, a nation reliant on global trade, faces uncertain times with the possibility of a trade war ignited by the United States. While analysts predict repercussions, the extent and timing remain ambiguous, echoing past financial upheavals.

Remember 2008, when financial leaders underestimated the global crisis? Expert Alex Apostolides warns against repeating history, urging vigilance as trade tensions escalate.
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As a small, open economy, Cyprus could be negatively impacted by tariffs, much like other EU nations. Apostolides emphasizes the importance of aligning with EU strategies to mitigate adverse effects.

Beyond direct trade impacts, diminished capital flows might influence financial markets. Despite being a financial hub, Cyprus may see decreased attractiveness for new enterprises amidst these changing global dynamics.

History reminds us of 1932 when UK tariffs exacerbated Cyprus’ recession, sparking industrial growth as a silver lining.

Michalis Persianis of the Fiscal Council cautions on secondary impacts, such as shifting trade routes and currency fluctuations affecting sectors like tourism and ICT. These could, however, stabilize housing prices.

Investors might gravitate towards more liquid sovereign bonds, causing Cypriot bond yields to rise. Although not catastrophic, increased servicing costs for national debt underscore the need for fiscal discipline. Cyprus’ modest but essential bond issuance strategy is crucial to maintain its market presence.

Could a declining dollar against the euro reduce import costs for Cyprus? As oil prices drop, there’s potential for cheaper electricity—a welcome relief amid economic strains.

The Electricity Authority of Cyprus (EAC) is considering advance oil purchases to leverage current low prices. Hedging could safeguard against future price hikes, echoing practices from the COVID-19 era.

For an in-depth understanding of Cyprus’ economic maneuvers during global shifts, read more about potential U.S. investments in Cyprus.

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Modernizing Cyprus SMEs: Investment Initiatives Drive Competitive Excellence

by THEFUTURE.TEAM

February 19, 2026

SMEs: The Backbone Of Cyprus’ Economy

Small and medium-sized enterprises (SMEs) remain a central pillar of Cyprus’ economy, supporting employment, innovation and local production networks. Their long-term competitiveness increasingly depends on access to modern technologies, operational upgrades and targeted investment that improves efficiency and productivity.

The Thalia Initiative: A Strategic Investment Framework

The Thalia 2021–2027 Program plays a key role in supporting this transition. The initiative provides financial assistance to both new and established SMEs, particularly in manufacturing and selected economic sectors, helping businesses modernize infrastructure, upgrade technology and improve production capacity. With a total budget of €50 million and co-financing from the European Union, the program aims to strengthen competitiveness while encouraging entrepreneurship and job creation.

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Case Study: Pivo Microbrewery’s Production Revolution

Pivo Microbrewery illustrates how targeted investment can accelerate growth. Before receiving funding, co-owner Thanasis Poluneikis identified limited production capacity as a major obstacle to meeting rising demand. The introduction of modern machinery and updated technology has significantly improved production processes. According to Poluneikis, the new equipment has increased precision and consistency in quality control, helping maintain product freshness and standards throughout distribution. The upgrades also allowed the company to expand production and develop new partnerships, supporting broader market reach.

Enhancing Product Offerings: The Vanilla Aroma Bakery Experience

Vanilla Aroma Bakery represents another example of modernization through investment support. Owner Giannis Toumpas used the funding framework to upgrade both the facility layout and production equipment. The improvements have accelerated operations and increased efficiency, enabling the bakery to refine existing products while introducing new offerings. These changes have strengthened customer experience and reinforced the brand’s position in a competitive market where quality and presentation remain key differentiators.

Financial Support As A Catalyst For Growth

These examples highlight the role of the Thalia Initiative as a financing tool that translates investment into measurable business development. By supporting equipment upgrades, technology adoption and infrastructure improvements, the program contributes to the long-term sustainability of SMEs, encourages innovation and supports job creation. The continued modernization of small and medium-sized enterprises is helping build a more resilient and competitive business environment that supports broader economic growth in Cyprus.