Category: Cyprus News Agency

Atmospheric pressure at the time of issue: 1014hPa (hectopascal)

Barometric low is affecting the area. The weather will be at times mainly cloudy with local showers and isolated thunderstorms. IN STORM THE WIND IS EXPECTED TO BE VARIABLE STRENGTHENING, WITH RISK GUSTING TO 7 TO 8 BEAUFORT.

Visibility: Good, but moderate to poor in showers

Sea surface temperature: 25°C

Warnings: NIL

AREA

PERIOD

WIND

STATE OF SEA

West Coast

Afternoon

Southeast to Southwest 3 to 4

Slight

Night

Northeast to Southeast 3 to 4, offshore Southwest to West

Slight

Morning

Southeast to Southwest 3 to 4, gradually South to Southwest

Slight

South Coast

Afternoon

South to Southwest 3 to 4, locally 4

Slight

Night

South to Southwest 3 to 4, later Southwest to Northwest

Slight

Morning

Southwest to Northwest 3 to 4, gradually South to Southwest 4

Slight

East Coast

Afternoon

South to Southwest 3 to 4, locally 4

Smooth to Slight

Night

South to Southwest 3 to 4, locally 4

Smooth to Slight, locally Slight

Morning

South to Southwest 3 to 4, gradually 4

Smooth to Slight, gradually Slight

North Coast

Afternoon

South to Southwest 3 to 4, locally Variable 4

Smooth to Slight, locally Slight

Night

Southeast to Southwest 3 to 4, locally South to Southwest 4

Slight

Morning

South to Southwest 3 to 4, locally 4

Slight

Cyprus FM Constantinos Kombos said government stands in solidarity with Spain following the train collision that claimed the lives of at least 30 people.

”Deeply shocked by the tragic news of the train accident in Toledo, Spain. My heartfelt condolences to the families of the victims, to the Spanish people and to Spanish Minister of Foreign Affairs José Manuel Albares. I wish a swift recovery to all those injured. Cyprus stands in solidarity with Spain during this difficult time”, he posted on X.

Cyprus President Nicos Christodoulides said on Tuesday that the Greek Cypriot side was demonstrating its commitment to progress on the Cyprus issue, expressing hope for positive results from his meeting with Turkish Cypriot leader Tufan Erhrman.

Speaking before departing from the Presidential Palace for a meeting with Erhrman, in the UN-protected area of Nicosia airport, President Christodoulides said he would present a new proposal on crossing points in an effort to break the deadlock.

The talks would also focus on a proposal concerning the fenced-off area of Famagusta and direct trade, which he described as mutually beneficial, as well as the Greek Cypriot side’s proposed methodology for advancing confidence-building measures and resuming negotiations.

President Christodoulides noted that one of the 19 proposals he had submitted had been accepted, while the two leaders were due to meet separately later today with the Technical Committees on Youth and Cultural Heritage, as well as the Advisory Body on Civil Society.

He said the Greek Cypriot side had repeatedly put forward new ideas and proposals to promote progress, expressing hope that the meeting would yield positive results ahead of the expected visit of the UN Secretary-General’s personal envoy.

Cyprus has been divided since 1974, when Turkey invaded and occupied its northern third. Repeated rounds of UN-led peace talks have so far failed to yield results due to Turkish intransigence. The latest round of negotiations, in July 2017 at the Swiss resort of Crans-Montana ended inconclusively.

UN Secretary-General Antonio Guterres, whose term nears its end, announced he would convene another meeting in broader format, after adequate preparation, but gave no timeline. He secured to that end the consensus of both sides and of the guarantor powers. María Angela Holguín, Guterres’ Personal Envoy on Cyprus, is tasked to engage with the parties. Executive Vice-President Raffaele Fitto acts as the European Commission’s Special Representative for Cyprus, succeeding EU special envoy Johannes Hahn.

The Treasury of the Republic of Cyprus and the European Public Prosecutor’s Office (EPPO) signed on Tuesday a Memorandum of Cooperation aiming to strengthen their collaboration for the protection of the European Union’s financial interests.

According to an official press release, the Memorandum establishes a practical framework for cooperation between the two institutions, within the scope of their respective mandates and the applicable European and national legal framework.

It provides for clearer channels of communication and information exchange, timely responses to requests from the EPPO, and the provision of specialized technical and scientific support by the Treasury in the context of the European Public Prosecutor’s Office’s investigations.

Furthermore, the Memorandum envisages the strengthening of institutional cooperation through regular meetings, training activities, and the exchange of expertise, with the aim of fostering a better understanding of the procedures and operational needs of both parties.

The Memorandum was signed by the Accountant General of the Republic and Chair of AFCOS Cyprus, Andreas Antoniades, and Deputy European Chief Prosecutor Andrés Ritter, during an EPPO meeting hosted in Cyprus.

The ceremony was attended by European Prosecutors and European Delegated Prosecutors from Cyprus, France, Greece, Italy, and Malta, as well as representatives from the EPPO’s central office.

Cyprus’ primary healthcare services and their role in ensuring equitable access to quality healthcare were presented by Health Minister Neophytos Charalambides at the 76th session of the World Health Organization (WHO) Regional Committee for Europe, which opened in Copenhagen on Tuesday and runs until October 29.

According to a press release issued by the Ministry of Health, Charalambides participated in a high-level technical briefing on primary healthcare, where he outlined efforts to develop and strengthen primary healthcare in Cyprus and highlighted its role within the country’s General Healthcare System (GeSY).

The Minister also addressed the plenary session on Tuesday, in the presence of his counterparts and WHO Director-General.

During his address, he referred to the health challenges facing the WHO European Region, the strategic priorities under discussion and issues of particular importance to the Republic of Cyprus.

GDP Growth Accelerates in Q2 on Strong Consumption and Investment

Despite the deterioration in the global economic environment following the outbreak of the US-Iran war, the Cypriot economy remained resilient in Q2 2026, with GDP growth accelerating to 3.3%YoY, from 3.0%YoY in the previous quarter. This was the fourth-highest growth rate in the Euro Area. According to the expenditure breakdown, growth was primarily driven by household consumption (+5.4%YoY) and gross fixed capital formation (+9.4%YoY). The latter was supported mainly by a surge in investment in transport equipment (+151.9%YoY), while residential investment increased at a more moderate pace (+4.3%YoY). Household spending continued to benefit from favourable labour market conditions, with unemployment remaining close to record lows for this period of the year (3.6% in Q2 compared to 3.2% in Q2 2008), alongside robust consumer credit growth (+12.0%YoY) and strong wage dynamics (+3.9%YoY in hourly wage costs, the strongest increase in five quarters). Private consumption has traditionally been a key and stable driver of Cyprus’s economic growth, with the current contribution consistent with past expansionary periods.

Government consumption also contributed positively to growth, expanding by 4.5%YoY. Exports increased by 9.6%YoY, supported primarily by services exports. Nevertheless, the external surplus narrowed by 45.1%YoY, as imports rose by 12.9%YoY, largely reflecting the aforemantioned increase in transport-related investment. Thus, despite the strong performance of services exports, the external sector acted as a drag on GDP growth as the increase in imports more than offset the export contribution. On the production side, the acceleration in GDP growth was driven mainly by higher activity in wholesale and retail trade, ICT services, financial and insurance activities, and construction.

Contribution of GDP components to growth

Source: Cystat, Eurobank Research

Looking ahead, there are signs that economic momentum remained robust at the start of Q3 despite the ongoing geopolitical tensions in the Persian Gulf. On the investment side, real estate sales increased by 10.7%YoY in July-August, bringing the year-to-date growth rate to 13.7% and placing the market on track for a new all-time high. Strong demand is also evident in residential property prices, which rose by 8.5%YoY in Q2, lifting the residential property price index to a record high. This buoyant demand is being driven primarily by non-resident buyers, who accounted for 59% of the increase in property sales during January-August. As a result, construction activity is expected to remain strong to meet demand; during January-May, an expansion of 43.1% YoY was recorded in surface terms. In addition, transport equipment and intellectual property investment are expected to support capital formation during the remainder of 2026, through base effects.

Export performance has also proven more resilient than initially anticipated. The sharp decline in tourist arrivals recorded in March-April (-28.6%YoY) moderated significantly in June (-1.7%YoY) and July (-1.1%YoY), before widening only slightly in August (-3.3%YoY). As a result, tourist arrivals were down by 7.0% YoY during January-August, broadly in line with the 4.7%-5.8% decline projected in the previous Cyprus Insights newsletter. Under this scenario, tourism activity would remain above 2024 levels despite the challenging geopolitical environment. Real estate and intellectual property services are also expected to continue providing support to exports growth.

The outlook for household consumption remains subject to opposing forces. On the one hand, inflationary pressures re-emerged in August, with headline inflation accelerating to 5.2%YoY, from 4.4%YoY in July, largely driven by higher energy prices, despite the continued implementation of energy-related support measures. These developments increase uncertainty regarding the inflation outlook once such measures are gradually withdrawn. On the other hand, labour market conditions remain broadly supportive. As noted above, the unemployment rate remained close to historical lows in Q2 despite a 9.4%YoY increase in the number of registered unemployed persons. Encouragingly, unemployment declined relative to the previous quarter even though the labour force expanded by 1.6%QoQ, with non-residents accounting for 65.1% of the increase. This suggests that Cyprus continues to attract foreign workers, an important development given the persistent labour shortages that the country needs to tackle, reflected in the still-elevated job vacancy rate (2.6% in Q2 2026). Moreover, there are signs that labour market conditions improved further during Q3, as the annual increase in registered unemployment moderated to 6.5% in July-August.

Another indication of the resilience of Cyprus’s domestic fundamentals and favourable medium-term macroeconomic outlook is the recent sovereign rating upgrade by S and P to A from A-, accompanied by a positive outlook. According to the agency, the upgrade reflects the country’s continued external and fiscal deleveraging, which is underpinned by strong real economic growth.

The EU’s energy security ahead of the winter and the European Commission’s proposal regarding network charges will be among the issues that EU Ministers of Transport, Telecommunications and Energy will discuss in Luxembourg on Thursday. Cyprus will be represented by Minister of Energy, Commerce and Industry Michalis Damianos.

According to a press release by the Ministry of Energy, the Council’s agenda includes a discussion on the European Commission’s proposal for a Regulation regarding network charges, which aims to reduce electricity prices. The proposal focuses on digitalization through the deployment of smart grids and smart meters and on improving network tariff structures, with the goal of making network usage more transparent and cost-effective.

Moreover, Energy Ministers will examine the EU’s energy security, both in preparation for the 2026-2027 winter and from a longer-term perspective, taking into account pressures on energy supply and prices linked to Russia’s war against Ukraine and the conflict in the Middle East, as well as long-term challenges, particularly those related to climate change and the resilience of the energy system.

Regarding the energy framework beyond 2030, the Ministers will exchange views on the EU’s future energy architecture and potential targets for energy efficiency, renewable energy sources, interconnections, and electrification, in the context of the EU’s 2040 climate target, the press release concludes.

Cyprus and China are seeking to expand economic and business cooperation in investment, technology, shipping, tourism, renewable energy and local government, with new opportunities highlighted during the Cyprus-China Cooperation and Business Forum held at the Cyprus Chamber of Commerce and Industry (CCCI) in Nicosia on Tuesday.

Bilateral trade between Cyprus and China reached $1.44 billion in 2025, recording an annual increase of 26%, according to Chinese Ambassador to Cyprus Yang Yundong.

Addressing the forum, the Ambassador said China had become Cyprus’ fourth-largest trading partner and third-largest source of imports. He also noted that Cypriot products, including halloumi, zivania and juices, are increasingly finding their way into the Chinese market.

Yang highlighted considerable potential for further cooperation in shipping, tourism, green development and the digital economy, while emphasising Cyprus’ strategic role as a bridge between China and the European Union.

The Ambassador also pointed to emerging opportunities in China’s economy, particularly in artificial intelligence, robotics and other innovative industries.

CCCI President Stavros Stavrou, whose address was delivered by CCCI Secretary General Philokypros Roussounides, emphasised the importance of transforming strong bilateral relations into concrete commercial partnerships.

Stavrou described Cyprus as an attractive gateway for Chinese businesses seeking access to the European single market, highlighting its strategic location at the crossroads of Europe, Asia and Africa, its skilled workforce, professional services and established legal and regulatory framework.

At the same time, he noted that China represents an important market for Cypriot businesses and a global centre for technology, innovation, manufacturing and investment.

Nicosia Mayor Charalambos Prountzos outlined opportunities for cooperation with Chinese cities and companies in renewable energy, smart-city technologies and research.

The Mayor also announced that an agreement is scheduled to be signed on Friday, under the auspices of the Ministry of Education in Beijing, aimed at connecting academic and research institutions in Nicosia with counterparts in Chinese cities. Highlighting the capital’s competitive advantages, he referred to its six universities, six centres of excellence and approximately 50,000 students.

President of the Union of Cyprus Municipalities and Mayor of Larnaca Andreas Vyras emphasised the importance of strengthening cooperation between local authorities in Cyprus and China.

He identified smart cities, waste management, urban planning and sustainable development as areas where municipalities face common challenges and could benefit from exchanging expertise.

Invest Cyprus Director General Marios Tannousis presented Cyprus’ economic performance and growing attractiveness as an international investment destination.

He said the information and communications technology sector contributes more than pound 4 billion annually to the Cypriot economy, representing approximately 15-16% of GDP.

Tannousis also highlighted increasing foreign direct investment and the growth of shipping, education, financial services and tourism. He described Cyprus as a potential regional logistics, business and investment hub for Chinese companies seeking access to the European Union, the Middle East and North Africa.

Cyprus-China Business Association President Theodoros Parperis emphasised the opportunities for expanding bilateral trade and investment.

He highlighted Cyprus’ geographical advantages, business-friendly environment and growing professional and digital services sectors as important factors for Chinese companies considering regional expansion.

Parperis said the Association has more than 200 members and continues to promote business relations through trade missions, conferences and networking events in both countries. He also announced preparations for a new initiative in China, expressing hope that it would take place soon.

European Commissioner for Fisheries and Oceans Costas Kadis will be in Cyprus this week for a series of engagements, according to the agenda published by the European Commission.

Kadis will attend on Thursday a Circular Water Conference, hosted by the University of Cyprus, where he will deliver the keynote speech on Fisheries and Oceans.

On the sidelines of the conference, the Commissioner will meet with Elias Myrianthous, Commissioner for Environment and Animal Welfare of the Republic of Cyprus.

On Friday, Commissioner Kadis will visit the Zygi fishing harbour, where he will have the opportunity to speak directly with members of the local fishing community.

This will be followed by a meeting with representatives of the fishing sector at the Zygi Community Council, with the aim of exchanging views on the challenges faced by fishermen and the future of sustainable fishing.

Later on Friday, Commissioner Kadis will attend the ceremony for the School of Marine Sciences at the Cyprus University of Technology in Larnaca.

“The event will highlight the importance of marine research, scientific knowledge, and education for the sustainable development of the maritime sector,” the European Commission said.

FOR THE PERIOD FROM 0000 28/10/2026 UNTIL 2400 28/10/2026

Area covered is 8 kilometers seawards.

Winds are in BEAUFORT scale. Times are local times.

Atmospheric pressure at the time of issue: 1014hPa (hectopascal)

Low pressure starts affecting the area. The weather will be at times mainly cloudy with isolated and later local showers and isolated thunderstorms. IN STORM THE WIND IS EXPECTED TO BE VARIABLE STRENGTHENING, WITH RISK GUSTING TO 7 TO 8 BEAUFORT.

Visibility: Good, but moderate to poor in showers

Sea surface temperature: 25°C

Warnings: NIL

AREA PERIOD WIND STATE OF SEA

West Coast

Night Northeast to Southeast 3, at times locally 3 to 4 Smooth to Slight, at times locally Slight

Morning Southeast to Southwest 3 to 4, at times 4 Slight

Afternoon Southeast to Southwest 3 to 4, at times locally Variable 4 Slight

Tonight East to Southeast 4 to 5, gradually Southeast to Southwest Slight, gradually Slight to Moderate

South Coast

Night Northwest to North 3, at times locally Southwest to West Smooth to Slight

Morning Northwest to North 3, gradually Southeast to Southwest 3 to 4 Smooth to Slight

Afternoon South to Southwest 3 to 4, locally 4 to 5 Smooth to Slight, locally Slight

Tonight Southeast to Southwest 3 to 4, later 4 to 5 Slight

East Coast

Night Northwest to North 3, at times West to Northwest Smooth to Slight

Morning Southwest to Northwest 3, later Southwest 3 to 4 Smooth to Slight

Afternoon South to Southwest 4, at times 4 to 5 Smooth to Slight

Tonight Southeast to Southwest 4, at times 4 to 5 Smooth to Slight, at times Slight

North Coast

Night Southeast to Southwest 3, at times locally 3 to 4 Smooth to Slight, at times locally Slight

Morning Southeast to Southwest 3 to 4 Smooth to Slight, locally Slight

Afternoon Southwest to Northwest 3 to 4, at times South to Southwest 4 Smooth to Slight, at times Slight

Tonight Southeast to Southwest 3 to 4, gradually 4 to 5 Slight