The government’s primary concern remains a strong and resilient economy, which is the foundation on which businesses can plan, invest, and grow with confidence, said Deputy Minister to the President Irene Piki, who spoke of stability becoming even more important in a period of international uncertainty such as the one we are currently experiencing, where geopolitical and economic changes can easily affect market prospects.
In a speech at the 12th Cyprus Chamber of Commerce and Industry Business Leader Awards, which she read on behalf of the President of the Republic, the Deputy Minister to the President said that “in this complex environment, an economy that remains consistent, reliable, and resilient serves as a stable point of reference for the business world, strengthening confidence and opportunities for long-term planning.”
Piki praised the Chamber’s work, emphasizing that it contributes significantly to promoting Cyprus as an attractive destination for investment and to strengthening the extroversion of Cypriot businesses.
She recalled that a few days ago, at the CCCI’s Annual General Meeting and in view of Cyprus’ Presidency of the Council of the EU, the President presented his vision for a more competitive Cyprus, based on extroversion, access to finance, and a simple, business-friendly environment.
She emphasized that, despite the uncertain international environment, the Cypriot economy “is proving its resilience,” noting that in 2024 GDP grew by 3.4%, while growth of close to 4% is expected for 2025.
According to Piki, inflation remains among the lowest in the EU and unemployment has already fallen below 5%.
At the same time, she said that international rating agencies place Cyprus in category A with a positive outlook, confirming, as she said, its reliable and prudent economic management.
Piki also said that the 2026 budget, which is expected to be finalized in Parliament next week, strengthens fiscal stability through a surplus balance, noting that public debt is expected to be limited to 50.9% of GDP, strengthening the scope for targeted spending.
She also said that particular emphasis is placed on investments in energy, digital infrastructure, technology, and green growth, creating “a stable and predictable environment for businesses.”
According to the Deputy Minister, with the completion of the Recovery Plan projects, planning for the new seven-year framework will begin, adding that the preparation will be done “in a timely and methodical manner, in collaboration with the business community,” so that Cyprus can claim European resources from a position of strength.
“The tax reform, which is expected to be voted on December 22 and implemented on January 1, 2026, strengthens business liquidity and attracts investors,” she noted.
She also mentioned that an important step is the establishment of the Business Support Center (BSC), which will provide new financing tools and advisory services to small and medium-sized enterprises.
At the same time, she said that the Cyprus Equity Fund is already investing in innovative businesses, while the Ministry of Energy’s Grant Schemes are mobilizing pound 360 million by 2027 to boost competitiveness and extroversion.
Piki said that the government is moving forward with intensive digitization of services, while the Business Support Center in central Nicosia, which brings together critical licensing procedures, has been operating since 2025 “effectively reducing bureaucracy.”
She also stressed that the government’s energy strategy aims to reduce energy costs for businesses, adding that the operation of the competitive electricity market from October 2025 will offer businesses the opportunity to choose their supplier, creating competition and fairer prices.
With regard to investment in human capital, she said that the government is prioritizing the attraction of talent, noting that the Minds in Cyprus initiative, in collaboration with CCCI and Invest Cyprus, aims to repatriate skilled Cypriots.
“We will soon announce the schedule of events to be held abroad in 2026-indicatively, I would like to mention that we are targeting the US, the UK, and Greece-and I would like to encourage you to participate in them,” she said.
Concluding her speech, the Deputy Minister warmly congratulated the award winners, whom she described as “living proof of the dynamism, creativity, and resilience of the Cypriot business world.”