Morningstar DBRS has upgraded its forecast for Cyprus’ economic growth in 2026 to 3% from 2.9% expected last December.
At the same time, the Canadian rating agency, in its baseline macroeconomic scenario, expects Cyprus’ economy to grow by 2.6% in 2027, up from 2.4% it had estimated in December 2025.
Moreover, DBRS expects the unemployment rate to rise to 4.5% in 2026, a level that will remain the same in 2027, compared to 4.3% it had anticipated last December.
In a commentary published on 27 March, Morningstar DBRS noted that, for the global economy, the final impact of the war against Iran on growth and inflation remains uncertain, and that it expects a “moderate deterioration in forecasts in the coming months, especially if the conflict leads to persistent shortages of oil and natural gas.”
Additionally, it stated that, with only a few exceptions, forecasts for 2026 and 2027 remain broadly unchanged compared to what was expected last December.
(Source: CNA)
