The Cypriot economy continues to expand at one of the fastest rates in the euro area, supported by strong fundamentals, a diversified structure and a resilient banking system.
According to a report by Greek business outlet Newmoney, Cyprus combines sustained growth with financial stability and an increasingly strategic role as a regional investment hub linking Europe, the Middle East and India.
Citing analysis prepared by Eurobank Ltd following the completion of its merger with Hellenic Bank, the Greek outlet pointed out that Cyprus has demonstrated consistent macroeconomic strength in recent years.
The newly established Eurobank Ltd, which combines the operations of Hellenic Bank and Eurobank Cyprus, represents one of the most significant banking developments on the island in decades.
According to Eurobank’s research team, the Cypriot economy continues to outperform the European Union average, with growth rates exceeding three per cent and unemployment remaining below five per cent.
The report stated that the country enjoys macroeconomic stability and low inflation, supported by its membership in both the European Union and the euro area.
Eurobank analysts Konstantinos Vrahimis, Manager of Economic Research, and Konstantinos Pittalis, Head of Investor Relations, observed that Cyprus has recovered strongly from the challenges of the past decade, maintaining momentum and demonstrating robust resistance to external shocks.
They added that in the first half of 2025, Cyprus recorded one of the highest growth rates in the eurozone, almost double the regional average.
The country’s economic activity, they said, is highly diversified, with significant contributions from tourism, real estate, energy, technology manufacturing, healthcare and financial services.
The report pointed out that tourism and real estate alone account for a double-digit share of GDP, while investment in energy and healthcare sectors is accelerating.
Cyprus has also strengthened its role as a business and investment hub, attracting European conglomerates and international investors from regions such as the Middle East and India.
In the financial sector, Cyprus’ banking system has undergone substantial reform and consolidation, becoming one of the most stable and well-capitalised in Europe.
The Common Equity Tier 1 (CET1) capital ratio stood near 25 per cent at the end of 2024, well above supervisory requirements.
The system’s liquidity position is also strong, as deposits now exceed total loans, a reversal of the situation before the 2013 financial crisis.
The loan-to-deposit ratio has fallen from about 140 per cent to 47 per cent, reflecting a much healthier funding structure.
The report further noted that non-performing loans have dropped sharply, improving the sector’s stability and investor confidence.
Operating under the supervision of the European Central Bank within the framework of the EU Banking Union, Cypriot banks are now aligned with stringent European standards, reinforcing their credibility with depositors and investors.
According to the report, the combination of a growing economy, a robust financial system, and Cyprus’ strategic geographic position creates favourable conditions for investment and expansion.
The article also detailed the strong presence of Greek banks on the island, noting that three major Greek banking groups now operate in Cyprus.
Eurobank has become the largest banking and insurance organisation in Cyprus following its merger with Hellenic Bank and the acquisition of insurance companies previously owned by French group CNP.
The report said Eurobank’s strategy treats Cyprus not as a subsidiary market but as an investment gateway, connecting Europe with the Middle East and India.
The group plans to establish representative offices in Mumbai, Abu Dhabi, Israel and Saudi Arabia, expanding its international reach.
Eurobank’s total assets reached €103 billion, including €43 billion from international operations, which now contribute 53 per cent of group profitability.
Its investment in technology has also increased from €105 million to €150 million per year, while Eurobank Cyprus’ total assets tripled from €9.6 billion in June 2024 to €28.1 billion in September 2025 after the Hellenic acquisition.
Meanwhile, Alpha Bank Cyprus recently completed its transaction with AstroBank, becoming the third-largest bank on the island with assets exceeding €6.6 billion, loans of €2 billion, and deposits above €5.6 billion.
Alpha Bank Cyprus Chief Executive Miltos Michaelas said the bank’s goal is to strengthen Cyprus’ position as a regional financial bridge between Europe and the Middle East.
National Bank of Greece also maintains a strategic presence in Cyprus, aiming to expand its financing activities and develop its role as a hub for investment across the wider Middle East.
The report added that while Bank of Cyprus is not a Greek institution, its dual listing on both the Cyprus and Athens stock exchanges underscores the close financial ties between the two countries.
The report also mentioned that Cyprus’ stable macroeconomic framework, mature banking system, and regional connectivity make it a key financial and investment hub in the Eastern Mediterranean.
The country’s ongoing banking consolidation, international partnerships and sustained economic growth, it said, provide solid foundations for long-term investor confidence and economic expansion.