Omega Live

Cyprus Announces Support Measures for Households Amidst Economic Challenges

Published March 25, 2026, 10:54
Cyprus Announces Support Measures for Households Amidst Economic Challenges

The Cypriot government is preparing to announce support measures for households to address the economic impact of the war in Ukraine and the energy crisis. President Christodoulides, after meetings with the Minister of Finance and discussions with political parties, will address the Cypriot people on Thursday, March 26th, to present the measures. Initial discussions focus on interventions in energy prices, such as reducing fuel consumption tax or subsidizing electricity. Meanwhile, the Central Bank of Cyprus presents a pessimistic outlook for the economy, with growth expected to be limited to 2.7% in 2026 and inflation remaining at the same level. Geopolitical tensions, uncertainty, and foot-and-mouth disease contribute to this negative picture. The increase in oil prices is expected to negatively impact the tourism, shipping, construction, and real estate sectors, as they rely on foreign investment. In addition, a decrease in private consumption, investment, and exports is predicted, as well as an increase in prices for industrial products due to supply chain disruptions. The Central Bank points out that these effects will be particularly noticeable in the short term, while the government is trying to find ways to mitigate the consequences for citizens and businesses.