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KEVE President: 2026 Crucial for Cyprus' Economic Trajectory

Published December 29, 2025, 10:31

The President of the Cyprus Employers and Industrialists Federation (KEVE), Stavros Stavrou, expresses cautious optimism regarding the course of the Cypriot economy, highlighting its resilience and adaptability despite international challenges such as geopolitical tensions and the energy crisis. The economy shows positive signs, with a growth rate of around 3% of GDP, unemployment close to 5%, and public debt declining below 60% of GDP. However, Mr. Stavrou warns that 2026 will be a pivotal year due to numerous pending issues and open fronts that will affect future development. KEVE emphasizes the importance of maintaining a prudent but developmental fiscal policy that supports the real economy, entrepreneurship, and social cohesion. It warns against complacency and stresses the need to restrain government spending, rationalize the state payroll, and implement targeted social policies. The upcoming tax reform is given particular importance, with KEVE characterizing it as a historic opportunity to upgrade Cyprus' competitiveness. A modern tax system should reward productivity, innovation, and extroversion, while reducing bureaucracy and enhancing stability and transparency. Overall, KEVE's message is that Cyprus is on the right track, but its success is not guaranteed and requires continuous effort, realism, and vision for the future. The proper management of pending issues and the implementation of tax reform will be crucial for the economy's trajectory in 2026 and beyond.