Philenews

Prospects and Challenges for 2026: Cypriot Economy at a Turning Point

Published January 20, 2026, 13:28
Prospects and Challenges for 2026: Cypriot Economy at a Turning Point

The Federation of Employers and Industrialists (OEB) analyzes the prospects and challenges for the Cypriot economy in 2026, pointing out that the country is at a critical juncture. Despite the stability and resilience demonstrated by the economy, the OEB emphasizes the need for a business environment that offers predictability and flexibility. The lack of human capital remains the most serious structural challenge, while the need to reduce energy costs and accelerate the green transition is also significant. The OEB supports the promotion of digital transformation and the adoption of artificial intelligence by businesses, as well as the completion of tax reform. The importance of Cyprus strengthening its role as a regional business hub is highlighted.