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Real Activity Growth In Cyprus Projected To Gather Momentum

Cyprus is poised for a significant economic upswing, with projections indicating a robust acceleration in real activity growth. This optimistic forecast is detailed in a recent report by the Central Bank of Cyprus (CBC), which underscores the nation’s economic resilience and potential for future expansion.

According to the CBC, real activity growth in Cyprus is expected to gain substantial momentum, driven by a confluence of favourable factors. These include a strong performance in key sectors such as tourism, construction, and professional services, coupled with strategic governmental policies aimed at fostering economic stability and growth.

The tourism sector, a cornerstone of the Cypriot economy, has demonstrated remarkable resilience and recovery post-pandemic. The influx of tourists, particularly from Europe and the Middle East, has bolstered the sector, leading to increased revenue and job creation. This resurgence is expected to continue, supported by ongoing investments in infrastructure and marketing initiatives aimed at enhancing Cyprus’s appeal as a premier tourist destination.

In the construction sector, significant projects, both private and public, are set to drive growth. The development of residential and commercial properties, alongside infrastructure projects such as road networks and utility upgrades, is anticipated to stimulate economic activity. Additionally, the government’s focus on sustainable development and green building practices is likely to attract further investment and innovation in this sector.

Professional services, including finance, legal, and consulting, remain a critical component of Cyprus’s economic landscape. The island’s favourable business environment, strategic location, and robust regulatory framework have positioned it as a hub for international business. The continued growth of this sector is expected to contribute significantly to the overall economic momentum.

The CBC report also highlights the positive impact of governmental policies on economic growth. Measures such as fiscal consolidation, structural reforms, and investment in digital transformation have enhanced economic resilience and competitiveness. These policies have not only stabilized the economy but also created a conducive environment for sustainable growth.

Governor Constantinos Herodotou of the Central Bank of Cyprus expressed confidence in the country’s economic prospects, stating, “The projected growth in real activity is a testament to the resilience and dynamism of the Cypriot economy. Our strategic policies and the robust performance of key sectors are driving this positive outlook. We remain committed to fostering an environment that supports sustainable economic growth and development.”However, the report also cautions against potential risks that could temper this optimistic outlook. External factors such as geopolitical tensions, global economic slowdowns, and fluctuating energy prices could pose challenges. Domestically, issues such as labour market mismatches and the need for continued structural reforms must be addressed to ensure sustained growth.

Europe’s Deadly Summer Heat Exposed The Cost Of A Warming Continent

Europe experienced its deadliest summer for heat-related deaths on record in 2026, with an estimated 24,400 excess deaths linked to extreme temperatures across 30 countries. Researchers estimate that human-induced climate change was responsible for around 32,000 of the deaths attributed to heat in the study’s broader analysis, accounting for 65% of the total.

The findings highlight the growing public-health consequences of global warming, largely driven by fossil fuel use, as extreme heat becomes more frequent and severe.

A Summer Of Dangerous Heat

Between June and August, heatwaves pushed temperatures in Western Europe to an average of 2.9°C above the 1991–2020 norm, with some days reaching 12°C above average. Nearly a third of estimated heat-related deaths occurred during a particularly intense heatwave between 17 June and 1 July.

“These numbers are a stark reminder that our hotter, more extreme summers are having an increasingly severe impact on public health,” said Dr Clair Barnes, a researcher at Imperial College London and co-author of the study.

The estimated toll exceeded previous peaks of around 29,000 deaths in summer 2022 and 28,000 in 2003 across the region studied.

How Researchers Estimated The Toll

Researchers modelled the relationship between temperature and mortality across 854 urban areas in the EU, UK, Norway and Switzerland, covering around 40% of the population in the 30 countries studied.

The analysis incorporated temperature records, age, socioeconomic conditions, environmental factors and access to healthcare. By comparing actual temperatures with those expected without human-induced warming, the team estimated the additional deaths attributable to climate change.

Final official mortality figures for summer 2026 are not yet available in many countries, and heat-related deaths are often underreported because their effects can be difficult to identify directly.

Older People Face The Greatest Risk

People aged 85 and over accounted for roughly half of the estimated deaths. However, the impact extended across age groups, with around 800 excess deaths among adults aged 20–44 and approximately 6,000 among people under 65.

Southern Europe experienced the highest mortality burden, reflecting hotter temperatures and other vulnerabilities, including air pollution, limited green space and unequal access to healthcare and heat-alert systems.

Italy, France And Spain Record Highest Toll

Italy recorded an estimated 13,303 heat-related excess deaths, followed by France with 7,268 and Spain with 6,824. Germany recorded around 6,340, while the UK saw an estimated 4,354 deaths.

In the UK, the heat also placed significant pressure on healthcare services. Andrew Hartle, Professor of Practice of Anaesthesia at Imperial College Healthcare, said demand during the summer resembled that of a severe winter virus season.

Cities Urged To Strengthen Heat Protection

Researchers say cities can reduce the risks through climate shelters, external shading and building retrofits, alongside measures to help residents avoid exposure during the hottest hours. Checking on vulnerable people, staying hydrated and following heat alerts are also important.

The researchers stress that adaptation must go hand in hand with reducing fossil fuel use to limit further warming. The findings underline that extreme heat is already a major public-health threat across Europe, with thousands of lives at risk each summer.

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