The President of the Cyprus Chamber of Commerce & Industry (CCCI) Stavros Stavrou has emphasised the need to diversify the economy, with an emphasis on industry, exports, high value-added services, green energy, the digital economy and sustainable development, warning that "excessive dependence on a limited number of sectors poses risks."
As he states in his New Year's message, "in the opinion of the CCCI, the path towards 2026 is not without obstacles."
"The cost of energy, weaknesses in the reformed sectors, the lack of specialised human resources, bureaucracy in the public sector, delays in the administration of justice and labour tensions constitute serious challenges to the competitiveness of the Cypriot economy," he indicates.
This is the New Year's Message of the President of the CCCI
The Cypriot economy has proven in recent years that it possesses resilience, adaptability and dynamism, even within an international environment of increased uncertainty.
Geopolitical tensions, energy crises, inflationary pressures and rapid technological transition compose a complex scenario, in which Cyprus is called upon not only to survive, but to plan its future with realism and vision.
Today, the Cypriot economy is on a positive trajectory. Growth remains above the Eurozone average (at 3% of GDP), unemployment remains low (at 5%) and public finances are improving, with public debt on a downward trend (below 60%) as a percentage of GDP.
These significant performances are not accidental, but are the result of fiscal discipline, private initiative and the resilience of our economic model.
However, today's positive image does not in itself guarantee tomorrow's success. 2026 is already here and the decisions made today will largely determine our development footprint in the years to come.
And because we currently have many pending issues and open fronts, 2026 may prove to be a pivotal year for the continued success of our economy.
For the CCCI, the priority remains the maintenance of a prudent, yet developmental fiscal policy. Economic stability should not be considered an end in itself, but a tool for supporting the real economy, entrepreneurship and social cohesion.
Cyprus must avoid complacency. Containing inflexible government spending, rationalizing the state payroll, and targeted social policy are necessary conditions to create fiscal space for investments in sectors with multiplier benefits, such as infrastructure, innovation, and the green transition.
One of the most decisive factors for the economy in 2026 is tax reform, which constitutes a historic opportunity to upgrade Cyprus's competitiveness, enhancing its stability, transparency and international attractiveness as a business and investment destination.
A modern tax system must reward productivity, innovation and extroversion, while reducing bureaucracy and uncertainty for businesses. The digitalisation of tax processes and the stability of rules are crucial for attracting investment and talent.
As the CCCI, we believe that the vote in favour of the tax reform marks a new starting point for the Cypriot economy.
Estimates for 2026 converge on the fact that the Cypriot economy can maintain growth rates of 2.5% - 3%, provided that there are no serious external shocks.
Unemployment is expected to remain close to 4% - 4.5%, while inflation is forecast to move at more controlled levels compared to previous years.
For the CCCI, however, the aim is not only quantitative growth, but also the qualitative upgrading of our economic model. Excessive dependence on a limited number of sectors poses risks. Further diversification of the economy is needed, with an emphasis on industry, exports, high value-added services, green energy, the digital economy and sustainable development.
In the opinion of the CCCI, the path towards 2026 is not without obstacles. Energy costs, weaknesses in the reformed sectors, the lack of specialised human resources, bureaucracy in the public sector, delays in the administration of justice and labour tensions constitute serious challenges to the competitiveness of the Cypriot economy.
Also, social peace and the cultivation of a culture of cooperation between the state, employers and workers are essential to maintaining a healthy business environment. Without investment, there are no new jobs; and without stability, investment moves away.
We believe that Cyprus has the potential to enter 2026 as a more resilient, more competitive and fairer economy. However, this requires vision, consistency, reforms and long-term planning.
The CCCI will continue to actively contribute to the public debate, submitting evidence-based proposals and supporting every effort that strengthens entrepreneurship, development and social cohesion. The future of the Cypriot economy is not a given, it needs proper management with an eye on tomorrow.
The business world, the members of the CCCI, can be assured that they will once again be at the forefront of the progress and development of the country.
(Source: InBusinessNews)
