Politis

Cyprus University of Economics Research Centre: Growth to Remain at 3.5% in 2026

Published January 28, 2026, 17:25
Cyprus University of Economics Research Centre: Growth to Remain at 3.5% in 2026

The Cyprus University of Economics Research Centre has maintained its forecasts for the growth of the Cypriot economy at 3.5% for 2025 and 2026. The January 'Economic Prospects' report estimates a slowdown in the GDP growth rate from 3.9% in 2024 to 3.5% in 2025, with stabilization at 3.5% in 2026 and a slight decrease to 3.4% in 2027. The positive outlook is attributed to a strong labor market, declining inflation, high economic confidence, and increased lending due to lower interest rates. Despite global uncertainty, the economies of trading partners and international stock markets contribute to the resilience of the outlook. Inflation is projected to rise from 0.1% in 2025 to 0.8% in 2026 and 1.4% in 2027, with a downward revision of the 2026 forecast due to lower inflation and reduced oil prices. There are significant risks of lower growth and higher inflation, mainly due to the external environment.