Politis

Prolonged Drought Poses Biggest Risk to Cypriot Economy

Published February 9, 2026, 12:32
Prolonged Drought Poses Biggest Risk to Cypriot Economy

Prolonged drought and water scarcity are identified as the biggest risk to the Cypriot economy, with an index of 91%, according to a survey by the Council of Economic Competitiveness of Cyprus (SOAC). This is followed by cyberattacks (82%), climate deterioration (80%), lack of skilled personnel (80%), and failure of digital transformation (79%). The survey, conducted for the fourth consecutive year, categorized the 19 risks into four main groups: geopolitical security, institutional resilience, social and environmental resilience, and macroeconomic stability. The severity of the consequences remains high, while the probabilities of occurrence vary. SOAC emphasizes the need for immediate preventive measures, as risk mapping serves as a basis for strategic planning and policy. The survey highlights the urgent need to address water scarcity and its consequences for the economy.