Cyprus Economy Expected to Grow 2.5% Amid Risks

Cyprus is projected to experience economic growth of approximately 2.5% in 2025, according to the International Monetary Fund (IMF), which attributes this resilience to strong tourism and foreign investment. Despite this positive outlook, the IMF cautioned against loosening fiscal policies, highlighting potential risks from trade conflicts and regional tensions. Meanwhile, industrial production in Cyprus has also shown robust growth, rising 4.3% year-on-year in January 2025, with significant contributions from the mining and quarrying sectors. The credit rating agency Morningstar DBRS has revised its GDP growth forecast for Cyprus upward to 3.1% for 2025, citing improved economic conditions and a notable decrease in public debt. This upgrade in economic outlook reflects stronger domestic investment and consumer demand, positioning Cyprus as a standout performer among smaller European nations. Overall, Cyprus's economy is showing promising signs of resilience and recovery after past financial challenges.