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Drought and Water Scarcity Identified as Biggest Risk to Cypriot Economy

Published February 9, 2026, 12:41
Drought and Water Scarcity Identified as Biggest Risk to Cypriot Economy

Prolonged drought and water scarcity have been identified as the most significant risk to the Cypriot economy, according to a risk assessment survey conducted by the Council for Economic Competitiveness of Cyprus (SOAC). The survey, presented at a press conference, also highlighted cyberattacks on critical infrastructure, worsening climate conditions, a shortage of skilled personnel, and the failure of digital transformation as significant risks. The survey was based on a combined probability and severity index (Risk Index), which ranked drought and water scarcity with a score of 91%. Other risks identified were cyberattacks (82%), climate deterioration (80%), staff shortages (80%) and digital transformation (79%). The risks were grouped into four broader categories: geopolitical security and external shocks, institutional resilience and structural risks, social and environmental resilience, and macroeconomic stability. The survey showed that the severity of the consequences remains relatively stable, while the probability of risks occurring fluctuates. The SOAC emphasized that taking preventive measures and implementing appropriate actions can prevent and mitigate the negative impacts. The survey will be used as a basis for further discussions and actions by the Ministry of Finance, the Central Bank and the Fiscal Council.