Fiscal council report warns of medium-term risks to Cypriot economy

Outgoing Fiscal Council of Cyprus Chairman Michalis Persianis presented the 2025 Annual Activities Report, highlighting the current resilience of the national economy. While acknowledging strong performance metrics, including full employment, reduced debt, and budget surpluses, Persianis warned of potential medium-term crises. Growth remains positive but has moderated compared to previous years due to exogenous pressures. The report identified a structural risk where permanent, recurring expenses are funded by non-recurring revenue. These rising costs are tied to critical sectors such as climate, defense, energy, infrastructure, and housing. The council emphasized that maintaining current economic stability requires proactive policy adjustments to ensure long-term sustainability.