Significant 6.2% increase of Industrial Output Prices Index in September 2026

The Index of Industrial Output Prices recorded a significant 6.2% increase in September 2026, compared with the same month in 2025, mainly due to the rise in electricity prices, according to figures published on Friday by the Statistical Service.

As noted, for the period January-September 2026, the index showed an increase of 2,1% compared to the corresponding period of 2025.

According to the Service, the Industrial Producer Price Index for September 2026 stood at 130.5 points (base 2021=100), marking a 2.3% increase compared with August 2026.

In September 2026, compared with August 2026, the index remained stable in the mining and quarrying sector, while rising in all other sectors, specifically in electricity supply by 10.5%, in water supply and material recovery by 1.7%, and in manufacturing by 0.2 per cent.

As regards changes compared with the corresponding month of 2025, increases have been observed across all sectors, as follows: electricity supply 21.1%, water supply and materials recovery 10.3%, manufacturing 2.4%, and mining and quarrying 0.8%.

In particular, by manufacturing sector, in September 2026 compared with the corresponding month of 2025, according to the Statistical Service, increases were recorded in the manufacture of electronic and optical products and electrical equipment (13.0%), in the the manufacture of basic metals and fabricated metal products (5.6%), the manufacture of furniture, other manufacturing and repair and installation of machinery and equipment (5.2%), the manufacture of wood and products of wood and cork, except furniture (4.5%), and the manufacture of machinery and equipment, motor vehicles and other transport equipment (2.9%).

Cyprus’ UN representative decries arbitrary maritime delimitations during Turkey-Libya MoU discussion

Cyprus reiterated its position that the 2019 Turkey-Libya Memorandum of Understanding on maritime delimitation is “null and void” during a United Nations Security Council open debate on “Emerging Technologies and Maritime Security,” thanking the Greek Presidency for convening the meeting.

Referring to the Turkey-Libya Memorandum, particularly following its recent ratification by Libya’s House of Representatives, the representative of Cyprus Ambassador Maria Michael stated that “this purported agreement is null and void, does not comply with international law, and in particular, the rules pertaining to the conclusion of treaties as well as UNCLOS.”

“Geography cannot be changed, nor can the sovereign rights of states be disregarded through arbitrary maritime delimitations,” the representative stressed, adding that “Article 121 of UNCLOS clearly establishes the regime of islands and their entitlement to maritime zones.”

Ambassador Michael emphasized that the United Nations Convention on the Law of the Sea is fundamental to maritime security, legal certainty, and the peaceful settlement of disputes, noting that its provisions reflecting customary international law are binding upon all states. “The Mediterranean is our common sea. Its security and stability depend on good neighborly relations grounded on respect for international law and the sovereign rights of all coastal states,” the representative said.

Addressing the main theme of the debate, the representative noted that artificial intelligence can enhance maritime domain awareness, early warning, crisis response, and the protection of critical maritime infrastructure, while also supporting peacekeeping and humanitarian operations, as well as ceasefire and sanctions monitoring. At the same time, the representative warned that emerging technologies can amplify existing threats, including cyberattacks and hybrid operations targeting ports, shipping, submarine cables, and energy infrastructure.

In this context, the Ambassador stressed that the development and deployment of artificial intelligence must be conducted responsibly and ethically, guided by “meaningful human oversight, transparency, and accountability.” Cyprus reaffirmed its position that “technological progress must remain anchored in international law,” particularly the UN Charter and UNCLOS.

Concluding, Ambassador Michael highlighted the importance of information sharing, capacity building, and cooperation among states, international organizations, and the maritime industry. The representative also emphasized the Security Council’s role in addressing the implications of emerging technologies for international peace and security, while ensuring coherence across the United Nations system.

“Our collective objective must be to ensure that emerging technologies strengthen maritime security while remaining firmly grounded in international law, human oversight, and international cooperation,” she concluded.

CypERC updates its forecast for 2026 growth 0.5 p.m. higher in October’s outlook

The Economics Research Centre (CypERC) of the University of Cyprus has updated its economic outlook for the growth of the economy for 2026 in October, forecasting it 0.5 percentage point higher, compared to its July forecast.

According to CypERC, real GDP growth in Cyprus is expected to moderate from 4.8% in 2025 to 3.2% in 2026 and 3.1% in 2027, reflecting the dampening effects of ongoing inflationary pressures and tighter monetary conditions.

Nevertheless, it is noted that upward revisions to the historical GDP growth data published on 20 October 2026 support a favourable outlook for 2026-2027, with economic activity expected to continue to expand at a robust pace despite these headwinds.

Compared with the July issue, the growth forecast for 2026 is 0.5 percentage point higher, whereas the forecast for 2027 remains unchanged. It is noted that the stronger growth outlook for 2026 relative to the July issue is primarily attributed to higher-than-expected economic growth during the second quarter, together with favourable developments in the third quarter, including stronger economic confidence, low unemployment, and continued growth in new housing loans.

Inflation forecast also higher

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Inflation, as measured by the Consumer Price Index (CPI), is forecast to accelerate markedly, rising from 0.1% in 2025 to 3.1% in 2026, before easing to 2.3% in 2027. According to CypERC, the inflation forecasts for 2026 and 2027 are 0.1 and 0.2 percentage points higher, respectively, than in the July outlook.

“The upward revisions mainly reflect recent developments in prices and the real economy, including continued rapid increases in international oil prices, as well as robust economic growth and low unemployment in Cyprus,” CypERC noted.

It is added that, since July’s forecast, risks to the growth outlook have remained tilted to the downside, while upside risks to the inflation outlook have continued to dominate. “The ongoing conflict in the Middle East has intensified inflationary and, consequently, cost-of-living pressures and has remained a key source of uncertainty, posing a significant risk of lower growth and higher inflation than projected in this issue,” CypERC mentioned.

In addition, it is noted that tighter-than-anticipated financing conditions in response to persistently high inflation could create new challenges for businesses, households and public finances, resulting in lower GDP growth than currently projected.

Cyprus Department of Meteorology – Forecast for the Sea Area of Cyprus (A)

FOR THE PERIOD FROM 0600 30/10/2026 UNTIL 0600 31/10/2026

Atmospheric pressure at the time of issue: 1013hPa (hectopascal)

Weak low pressure is affecting the area. Today the weather will be mainly fine with locally increased cloud coverage at times.

Visibility: Good

Sea surface temperature: 25°C

Warnings: NIL

AREA

PERIOD

WIND

STATE OF SEA

West Coast

Morning

West to Northwest 3 to 4

Slight to Moderate, soon Slight

Afternoon

West to Northwest 3 to 4, locally 4

Slight

Night

Northwest to Northeast 3

Smooth to Slight

South Coast

Morning

Northwest to Northeast 3, later Southeast to Southwest 3 to 4

Slight

Afternoon

Southwest to West 3 to 4, locally 4

Smooth to Slight, locally Slight

Night

Northwest to North 3

Smooth to Slight

East Coast

Morning

Southwest to Northwest 3, locally 3 to 4

Smooth to Slight

Afternoon

South to Southwest 3 to 4

Smooth to Slight

Night

West to Northwest 3

Smooth to Slight

North Coast

Morning

Southwest to Northwest 3 to 4, soon Southwest to West

Slight to Moderate, soon Slight

Afternoon

Southwest to West 3 to 4, locally 4

Slight

Night

Southeast to Southwest 3

Smooth to Slight

Cyprus Stock Exchange

Cyprus Finance Minister, Makis Keravnos, praised Christine Lagarde’s leadership and role as President of the European Central Bank, on the occassion of her forthcoming early departure.

‘As Minister of Finance of the Republic of Cyprus, I would like to express my sincere appreciation to Christine Lagarde, following the announcement of her forthcoming departure as President of the European Central Bank”, he noted in a statement on Friday.

Keravnos said that her leadership during a period of significant economic challenges has contributed to safeguarding monetary stability and strengthening the resilience of the euro area, including Cyprus.

”I thank her for her valuable contribution to Europe and Cyprus and wish her every success in her future endeavors”, he said.

Foreign Ministry urges citizens to check travel advisories before travelling

The Ministry of Foreign Affairs has reminded Cypriot citizens planning to travel abroad of the importance of checking travel advisories issued by the Ministry in good time.

In a post on X, the Ministry urged citizens, as part of their travel preparations, to consult and follow the travel advisories published on its official website and check for any updates before departure.

‘Travel advisories provide useful information and recommendations on destination countries, helping travellers prepare better and ensure their journeys are carried out safely,’ it said.

Decrease in revenue from tourism in August due to the British market

Revenue from tourism in August decreased by 3.4% compared to the corresponding month of 2025 and amounted to 581.8 million, according to the Statistical Service of Cyprus.

CySTAT says that based on the results of the Passengers Survey carried out by the Statistical Service, revenue from tourism reached pound 562.0 mn in August 2026, recording a decrease of 3.4% compared to the corresponding month of the previous year (pound 581.8 mn).

For the period of January – August 2026, revenue from tourism is estimated at pound 2,319.8 mn compared to pound 2,472.9 mn in the corresponding period of 2025, recording a decrease of 6.2%.

The average expenditure per person was pound 965.81 in August 2026, remaining at the same level as in August 2025 (pound 966.41).

Tourists from the United Kingdom (the largest tourist market with 30.5% of the total tourists in August 2026) spent on average pound 104.13 per day, while tourists from Israel (the second largest market during the specific month with 23.3% of the total tourists) spent on average pound 178.44.

Tourists from Poland (the third largest market with 6.3%) spent on average pound 92.40 per day.

https://www.cna.org.cy/subscriber/article/11098992?srv_id=110&list_id=-3017774841288482709

Minister of Finance, Makis Keravnos, and British High Commissioner to Cyprus, Michael Tatham, reviewed on Friday bilateral economic relations and cooperation during a meeting they had at the Ministry of Finance. They also exchanged views on further cooperation in the areas of financial services, digital transformation and aerospace a press release issued by the Finance Ministry said.

Moreover, it added, the two officials discussed about investment promotion policies and investment screening mechanisms in these sectors, with a view to striking a balance between economic growth and the protection of strategic interests.

According to the press release, both the Minister of Finance and the High Commissioner referred to the excellent and ongoing cooperation between the two countries on sanctions, particularly the cooperation between the National Sanctions Implementation Unit (NSIU) and the United Kingdom’s Office of Financial Sanctions Implementation (OFSI).

It is added that the High Commissioner described this long-standing cooperation as a shining example of bilateral cooperation between the two countries and expressed his satisfaction with the progress achieved.

Finally, discussions addressed the significant challenges facing the two countries as a result, among other factors, of geopolitical developments in the region and the war in Ukraine, with particular emphasis on the energy crisis, the press release concluded.

Electricity price in Cyprus at 29.9 purchasing power standards, according to Eurostat

The price of electricity for households in Cyprus stood at 29.9 purchasing power standards per 100 kilowatt-hours in the first half of 2026, according to data published by Eurostat on Friday.

At EU level, the average household electricity price decreased by 2.2% in the first half of 2026, falling to pound 0.28 per kilowatt-hour from pound 0.29 per kilowatt-hour in the second half of 2025, according to Eurostat.

Despite the decrease, prices remained significantly above the levels recorded before the 2022 energy crisis.

At the same time, the share of taxes and levies in the final household electricity bill in the EU decreased by 0.5 percentage points, from 28.9% in the second half of 2025 to 28.4% in the first half of 2026.

Progress on Cyprus issue possible with sincere political will by Turkish Cypriot side, Spokesperson says

If there is sincere political will by the Turkish Cypriot side regarding the 19 proposals and the issues discussed at both the expanded meetings and throughout the preceding period, then progress can be made on the Cyprus issue, Government Spokesperson, Konstantinos Letymbiotis said on Friday, in remarks made following the meeting between the President of the Republic, Nikos Christodoulides, and the UN Secretary-General’s Personal Envoy for Cyprus, María Ángela Holguín.

According to Letymbiotis, the meeting included a review of the regular meetings held by the President of the Republic with the Turkish Cypriot leader, Tufan Erhurman, and in particular the most recent meeting, which, as President Christodoulides himself noted, took place in a very positive and constructive atmosphere.

As he noted, during the meeting the 19 proposals submitted by the President of the Republic were discussed and how the discussion between the two leaders might proceed on these proposals, covering confidence-building measures, substantive issues and methodology, so that each side can contribute, to the best of its ability, to achieving the objective set out by the United Nations Secretary-General, to which he remains committed, namely the convening of a successful expanded conference within Antonio Guterres’s term of office.

He added that the President of the Republic, in view of the joint meeting already scheduled with the Turkish Cypriot leader, conveyed to Holguín his view that it would be beneficial to hold as many joint meetings as possible during her stay in Cyprus.

He added that Holguín had informed him that she had a meeting scheduled for Monday with Tufan Erhrman, during which she would also discuss with him the matters they had discussed with the President of the Republic, and that a further update would be provided.

Asked whether recording and handing over convergence points from previous negotiations had been discussed, Letymbiotis said that this is the position of the Greek Cypriot side, which has been conveyed in every possible way, both through the Greek Cypriot negotiator and through the President of the Republic.

‘This approach remains, that this record of points of convergence will contribute to the effort to resume negotiations, that is to say, to establish this self-evident common understanding of how we resume negotiations from the point at which they were suspended’, he added.

Asked about the reservations expressed recently, following Holguín’s interview on 17 October, and whether the President of the Republic conveyed these reservations to her today, the Government Spokesperson said that this is not a matter of reservations, but rather of what exactly the added value of the United Nations’ presence is, under whose auspices the regular meetings between the President of the Republic and the Turkish Cypriot leader take place, and what is the value and significance of the United Nations Secretary-General’s Personal Envoy also being present.

He reiterated that the President of the Republic had conveyed this approach during Holguín’s stay in the country, namely that it would be positive and could only be beneficial to hold as many joint meetings as possible in her presence.

Asked whether the President of the Republic intended to put forward any new ideas at the joint meeting, or even, for formal reasons, to present the 19 proposals in writing, a matter about which the Turkish Cypriot leader had expressed complaints, Letymbiotis said that the 19 proposals had been discussed at the last meeting between the two leaders, some of which, as the President of the Republic himself has stated, have been rejected and others are under discussion, with the aim being to discuss them in substance.

‘As we have said many times, we are here for anything that can be considered constructive. That is our approach, to be constructive. However, I believe that the substance of the 19 proposals is perfectly clear, especially if we take into account one of them in particular, the one concerning the enclosed area of Varosha together with the port of Famagusta. I believe that if we wish to discuss the substance of the matter, and if our common approach is to find ways to accept these proposals, we can do so’, he noted on that matter.

Asked whether the request from the occupied municipalities for meetings had been conveyed to Holguín as part of her engagement with the civil society, the Spokesperson said that the President of the Republic had conveyed to Holguín the request from the Famagusta Municipality and other occupied municipalities and organised groups, which have asked or wish to meet with her, adding that this is something she will assess herself, together with her office.

Asked whether any outcome can be achieved by the end of Holguín’s visit to Cyprus, Letymbiotis said that this, of course, is possible.

‘If the obvious is in place, if there is sincere political will on the other side regarding the 19 proposals and everything that has been discussed both in the two expanded meetings and throughout the entire preceding period, then of course progress can be made,’ he emphasised.

Asked to comment on yesterday’s remarks by the Turkish President and Ankara’s efforts to upgrade the status of the occupation regime within the Organisation of Turkic States, Letymbiotis said that even if many efforts are made by Turkey or the illegal regime, there can be no violation of international law.

‘The Security Council resolutions and the international community as a whole have, over time, categorically taken a stance for the Republic of Cyprus as the only internationally recognised state, and all these diversionary attempts on the part of Turkey do nothing to contribute to the climate that the UN Secretary-General himself wishes to create,’ he further stressed.

Asked whether the above actions were having a negative impact on the climate of the negotiations on the Cyprus issue, the Spokesperson said that they certainly do not contribute positively, adding that if what we wish for is a positive approach and a positive response to the UN Secretary-General’s call, this should be reflected not only in the content but also in the tone of public statements.

‘Precisely because we are aware of what is at stake, precisely because we wish to see progress on the Cyprus issue, I believe this is evident not only in our public statements, but even more so in the proposals we put forward’, he added.

Asked whether Holguin had been informed of the stance observed at this meeting, where Erhrman was present alongside the President of Turkey, Letymbiotis said that these are matters discussed with the UN, whilst the Permanent Mission of Cyprus to the UN conveys all messages to the UN Secretariat and takes the appropriate diplomatic steps.

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.