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Cyprus Business News

Cyprus Business News

  • 17.03.2025 14:00
  • cyprus-mail.com
  • Keywords: Cyprus, GDP Growth

Cyprus' GDP is projected to grow at 3.2% in 2025, down from 3.4% in 2024. Job vacancies rose by 8%, and efforts to boost electric vehicle adoption are underway. The country's business environment faces mixed fortunes amid tourism growth, real estate challenges, and international investment shifts.

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Estimated market influence

Bank of Cyprus

Positivesentiment_satisfied
Analyst rating: N/A

Received title of 'Best Private Bank Cyprus 2025'.

CarVal Investors

Negativesentiment_dissatisfied
Analyst rating: N/A

Significantly reduced holdings in the Bank of Cyprus.

Caius Capital LLP

Negativesentiment_dissatisfied
Analyst rating: N/A

Significantly reduced holdings in the Bank of Cyprus.

Context

Business Insights and Market Implications Analysis

Economic Growth

  • Cyprus’ GDP growth is projected at 3.2% in 2025, slightly lower than 3.4% in 2024, indicating a moderate economic slowdown.

Labor Market

  • Job vacancies rose by 8% year-on-year to 12,997 positions in Q4 2024, signaling strong labor demand and potential wage pressures.

Sustainability and Energy Transition

  • Cyprus aims to reduce conventional vehicle use from 97% to 70% by 2030, requiring the registration of 85,000 electric vehicles, aligning with EU sustainability goals.

Tourism Sector

  • The tourism sector experienced a record year in 2024 with over 4 million visitors and revenues exceeding €3 billion, driven by a 6% increase in arrivals.

Banking and Financial Services

  • Bank of Cyprus (BoC) received the title of ‘Best Private Bank Cyprus 2025’, reflecting improved financial performance and investor confidence.
  • Analysts have raised price targets for BoC, indicating a more optimistic outlook for the bank’s future.

Investment and Market Trends

  • Major investment funds, including CarVal Investors and Caius Capital LLP, have reduced holdings in BoC, marking a controlled divestment process.
  • The InvestPro Cyprus 2025 event in Limassol is expected to attract global investors, positioning Cyprus as a key business hub.

Regulatory and Policy Implications

  • The Cyprus International Businesses Association (CIBA) raised concerns about the proposed tax reform’s impact on foreign businesses, highlighting regulatory risks.
  • Real estate agents face uncertainty due to revised licensing requirements, potentially disrupting market dynamics.

Industry Growth and Competition

  • Hotel upgrades in tourist areas reflect ongoing investments despite sector challenges, enhancing competitiveness.
  • The professional services sector remains a key economic pillar, with Limassol emerging as the main hub for financial, legal, and business services.

European Union Dynamics

  • EU competitiveness concerns were raised by Andreas Antoniades, emphasizing broader challenges impacting Cyprus as an EU member state.

Energy Strategy

  • Cyprus’ national hydrogen strategy is under consultation, aiming to align with EU goals but facing implementation hurdles.

Government and Business Collaboration

  • Deputy Minister of Tourism Kostas Koumis met with ambassadors from Egypt and Qatar to strengthen tourism cooperation, underscoring strategic partnerships.
  • Alpha Bank’s meetings with state officials and business figures highlight expansion plans and growth strategies in the financial sector.

This analysis highlights key trends across Cyprus’ economy, including labor market dynamics, sustainability efforts, tourism growth, banking performance, regulatory challenges, and competitive industry shifts.