Former finance minister calls for Cyprus economic model shift

Speaking at the Cyprus Forum 2026 on Tuesday, former Finance Minister Michalis Sarris advocated for a fundamental shift in the nation's economic strategy. Sarris, currently the chairman of AstroCapital, argued that the country's excessive dependence on real estate investment is stifling growth in more productive sectors, such as technology and innovation.

Sarris highlighted that the current investment model, which prioritizes capital accumulation in housing, has failed to create high-value employment opportunities for younger generations. He warned that the resulting concentration of wealth among a small group of influential individuals is driving rising income inequality. According to Sarris, this trend poses a systemic risk that could undermine confidence in the island's liberal democratic model.

To address these challenges, Sarris urged policymakers to redirect financial incentives away from property development toward sectors capable of fostering long-term business investment. By focusing on innovation and technology, he argued that Cyprus could better address the needs of its youth and mitigate the socio-economic pressures created by the current reliance on construction.