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KEVE President: 2026 Crucial for Cyprus' Economic Trajectory

Published December 29, 2025, 15:19
KEVE President: 2026 Crucial for Cyprus' Economic Trajectory

The President of KEVE (Cyprus Employers and Industrialists Federation), Stavros Stavrou, expresses cautious optimism about the course of the Cypriot economy, emphasizing that it is on a positive trajectory with a growth rate of around 3% of GDP, unemployment close to 5%, and public debt below 60% of GDP and decreasing. However, he points out that 2026 will be a crucial year due to many pending issues and open fronts that will affect the future of the economy. Mr. Stavrou notes that the Cypriot economy has demonstrated resilience and adaptability despite international challenges such as geopolitical tensions, energy crises, and inflation. This success is attributed to fiscal discipline, private initiative, and the resilience of the economic model. KEVE emphasizes the need to maintain a prudent but developmental fiscal policy, aiming to support the real economy, entrepreneurship, and social cohesion. It proposes curbing state spending, rationalizing the state payroll, and a targeted social policy. Furthermore, KEVE believes that the tax reform is a historic opportunity to upgrade Cyprus' competitiveness. A modern tax system should reward productivity, innovation, and extroversion, while reducing bureaucracy and enhancing stability and transparency. Forecasts for 2026 expect growth rates between 2.5% and 3%, with unemployment around 4%-4.5% and inflation.

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