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KEVE President: 2026 Crucial for Cypriot Economy

Published December 29, 2025, 10:15
KEVE President: 2026 Crucial for Cypriot Economy

The President of the Cyprus Chamber of Commerce and Industry (KEVE), Stavros Stavrou, expressed cautious optimism regarding the trajectory of the Cypriot economy, highlighting its resilience and adaptability despite international challenges such as geopolitical tensions, energy crises, and inflation. The economy demonstrates positive growth rates (around 3% of GDP), low unemployment (close to 5%), and a decrease in public debt (below 60% of GDP), results attributed to fiscal discipline and private initiative. However, Mr. Stavrou warned that 2026 will be a pivotal year for Cyprus due to numerous pending issues and open fronts that will affect its future development. He emphasized the need for prudent fiscal policy that supports the real economy, entrepreneurship, and social cohesion. KEVE stresses the importance of containing state spending, streamlining the public payroll, and implementing targeted social policies to create fiscal space for investments in areas such as infrastructure, innovation, and the green transition. Avoiding complacency is considered a necessary condition for continued economic success. Furthermore, KEVE believes that the approval of the tax reform is crucial for 2026, as it will upgrade Cyprus's competitiveness. A modern tax system should reward productivity, innovation, and extroversion, while reducing bureaucracy and enhancing stability and transparency.