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Cyprus Economic Climate Improves in December, Price Increases Expected in 2026

Published January 5, 2026, 18:12
Cyprus Economic Climate Improves in December, Price Increases Expected in 2026

The economic climate in Cyprus improved in December 2025, according to research from the Centre for Economic Research (CER) of the University of Cyprus. The increase is mainly due to the improvement of the business climate in the services and retail sectors, as well as the strengthening of consumer confidence. The Economic Sentiment Index (ESI) increased by 1.6 points compared to November. At the same time, the climate in construction and manufacturing remained stable at positive levels. The CER research indicates that there are indications of potential price increases in the coming months, as both businesses and consumers expect prices to rise. A significant decrease was also observed in the Economic Uncertainty Index for the third consecutive month, due to the reduction of uncertainty among both consumers and businesses in the services and manufacturing sectors. The improvement in the climate in services is linked to the better assessment of the economic situation and turnover by businesses. The strengthening of the climate in retail trade is due to more optimistic forecasts for sales in the next quarter. Overall, high levels of economic confidence combined with reduced uncertainty create positive prospects for economic activity in Cyprus in the coming months.