[CNA]
The Central Bank of Cyprus projects gross domestic product growth to average 3% annually in the period from 2026 to 2028, and estimates that last year’s GDP expansion amounted to 3.5%, compared to 3.9% in 2024.
CBC Governor Christodoulos Patsalides noted on Friday that the momentum of the Cypriot economy indicates that the country has strong foundations and shows flexibility and adaptability in addressing external pressures.
The public debt-to-GDP ratio declined to 56.2% in November 2025, from 65.8% in November 2024, while unemployment stands at 4.5% and core inflation at 1.9% for the years 2025-2028.
EU-harmonized inflation is projected to have fallen further to 0.8% in 2025 from 2.3% in 2024, while it is expected to rise to 1.7% in 2026, 2.2% in 2027, and 1.9% in 2028.
Core inflation is forecast to average around 1.9% during 2025-2028, compared with 2.6% in 2024.
As stated in CBC’s December Economic Bulletin, published on Friday, “the projected GDP path is mainly due to the expected further increase in domestic demand throughout the forecast horizon, and, to a relatively lesser extent, to the anticipated course of external demand.”