SOURCED FROM CURRENT NEWSPAPERS AND JOURNALS
CYPRUS DEPARTMENT OF METEOROLOGY
FORECAST FOR THE SEA AREA OF CYPRUS (C)
FOR THE PERIOD FROM 1800 30/09/2025 UNTIL 1800 01/10/2025
Area covered is 8 kilometers seawards.
Winds are in BEAUFORT scale. Times are local times.
Atmospheric pressure at the time of issue: 1012hPa (hectopascal)
Seasonal low pressure is affecting the area. The weather will be mainly fine but locally increased cloud will be present.
Visibility: Good
Sea surface temperature: 27°C
Warnings: NIL
Cyprus’ 2026 state budget foresees higher operating, development and social expenditures, while maintaining a strong focus on reducing public debt, with 21% of expenditure earmarked for debt servicing, Finance Minister Makis Keravnos said on Monday after presenting the draft budget to the Cabinet.
Keravnos described the 2026 budget as ‘balanced, growth-oriented, with a strong emphasis on social cohesion and social policy.’
Macroeconomic outlook
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According to the baseline macroeconomic scenario, Cyprus’ medium-term economic prospects remain positive, though subject to considerable uncertainty. GDP growth is projected at 3.1% in both 2025 and 2026, followed by 3% in 2027 and 2.9% in 2028.
Inflation is estimated at just 0.2% in 2025, rising to 2.5% in 2026 before easing to 2% in 2027-2028. Unemployment is expected to remain stable at 4.6% in 2025-2027, edging down to 4.5% in 2028.
The fiscal balance is projected to remain in surplus at 3.7% of GDP in 2025, compared with 4.3% in 2024, while the primary surplus is estimated at 5% in 2025. For 2026-2028, the fiscal surplus is forecast at around 3.4% of GDP.
Public debt is set to continue its downward trend, falling below the EU’s 60% threshold in 2025 at 57.9%. It is expected to decline further to 52.9% in 2026, 48.7% in 2027, and 43.6% by the end of 2028.
Budget figures
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The 2026 budget, excluding debt servicing, is projected at pound 10.7 billion. Total revenues are estimated at pound 12.68 billion, while expenditures amount to pound 10.78 billion. Debt repayments of pound 2.27 billion and interest payments of pound 665 million bring total spending to pound 13.72 billion.
Revenue includes pound 4.05 billion from direct taxation, pound 4.55 billion from indirect taxation, pound 683 million from sales of goods and services, pound 237 million from rents, royalties and other proceeds, and pound 100.4 million from transfers. Financial revenues are projected at pound 2.88 billion.
Expenditure priorities
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Debt servicing takes up the largest share, accounting for 21% of expenditures. This includes pound 2.1 billion in foreign debt repayments, pound 71 million in domestic debt repayments, and pound 665 million in interest.
Operating expenditure rises 11.8% compared with 2025, reaching pound 3.77 billion, or 11.5% of the budget. The increase reflects higher spending on water supply (pound 26.1 million), defence and policing (pound 31.1 million), preparations for Cyprus’ EU Presidency in 2026 (pound 6 million), and staff training (pound 16.1 million).
Personnel expenditure accounts for 27.5% of the budget. The number of public sector posts will be reduced by 14 for a second consecutive year, with 458 new posts created and 472 abolished. Employment in the public service is down by 1,963 since 2012, or 5,883 if seconded staff at state hospitals are included. In contrast, employment in education has risen by 3,752 since 2012.
Transfers increase by 5.2% year-on-year, making up 30.8% of the budget. Social benefits rise by 6.7% to pound 2.3 billion. Contributions to the Social Insurance Fund and the national health system (GeSY) total pound 1.6 billion, up pound 163.4 million. Other transfers include pound 294.1 million to the EU budget, pound 231.6 million in grants to public and private sector organisations including universities, and pound 147 million to local authorities.
Capital expenditure declines by 2.6% to pound 580 million.
The Finance Ministry also outlined major infrastructure projects budgeted for 2026-2028, with total costs of pound 1.1 billion. The most expensive include the new Cyprus Museum (pound 145.7 million), the ‘Ktizo’ housing scheme (pound 130 million), the Deneia-Akaki-Astromeritis road (pound 129.7 million), and the Nicosia Courthouse complex (pound 119 million).
The critical importance of research and innovation in strengthening the EU’s strategy for startups and scaleups, was pointed out by the Deputy Minister of Research, Innovation and Digital Policy Nikodimos Damianos, at the EU Competitiveness Council for Research, on Tuesday in Brussels. “This strategy is not only about supporting new businesses, but also about retaining talent and innovative startups within Europe,” stressed Damianos, adding that “Cyprus is ready to actively contribute to its implementation, especially in view of the upcoming Cypriot Presidency of the EU Council in 2026.”
A regards the Council’s main conclusions, Damianos stressed that “we must bridge the innovation gap between member states,” highlighting that “this strategy will enhance Europe’s competitiveness and technological sovereignty, ensuring that top talent and innovative companies remain within the EU.”
The research ministers of the 27 member states also approved conclusions on the EU’s Life Sciences Strategy, that underscores their critical role in boosting competitiveness, strategic autonomy, and social well-being. “Life sciences are one of the key pillars for Europe’s economic and technological independence,” noted Damianos, adding that “Cyprus, with its investments in areas such as biotechnology and biobanks, is ready to contribute to the implementation of this strategy.”
The most political part of the second day’s discussions focused on research and innovation for dual-use and defense applications. During the debate on the “Horizon Europe” Framework Programme (2028-2034), Damianos emphasized that “the new approach to dual-use and defense will strengthen the EU’s resilience and competitiveness.” However, he stressed the need for clear rules and criteria for third-country participation to avoid risks to the EU’s energy and technological security. “We must ensure that procedures are simplified and free of additional administrative burdens, especially for Member States with limited resources,” he added, referring to the need to support “widening” Member States in accessing critical technological infrastructures.
During a working lunch, ministers discussed the EU’s future ambitions regarding research and technological infrastructures. Damianos pointed out that “as a geographically small and isolated Member State, Cyprus considers EU support for access to world-class infrastructures vital.” However, “without this support, we risk falling behind in critical areas such as artificial intelligence and semiconductors,” he added.
On the sidelines of the Council in Brussels, Damianos held bilateral meetings with his counterparts from Estonia, Minister of Education and Research, Kristina Kallas, and Portugal, Minister of Education, Science and Innovation, Fernando Alexandre, aiming to coordinate and prepare for key issues ahead of Cyprus’s EU Council Presidency in 2026. “Cyprus will place particular emphasis on strengthening research, innovation, and digital transition, with the goal of a more competitive and sustainable Europe,” he concluded.
The Minister of Agriculture, Rural Development and Environment, Maria Panayiotou, briefed the House Agriculture Committee on Tuesday about the challenges facing the production and trade of halloumi PDO, the checks carried out so far, and the government’s support measures for producers.
Panayiotou said that in 2025 to date, the Competent Authority has conducted nine inspections with nine samples, while the Control Body carried out 11 inspections with 22 samples. These checks identified two cases of non-compliance by the Control Body and one by the Competent Authority. As a result, batches were seized and relabelled to ensure they would not be sold as PDO halloumi.
On export checks, she said that up to 19 September, 250 administrative controls of halloumi PDO exports had been carried out, with six complaints submitted in four countries through the EU’s Rapid Alert System for Food and Feed (iRasff).
The Minister highlighted the creation in autumn 2024 of an Interdepartmental Committee on halloumi, bringing together all relevant authorities for the first time to coordinate exports. This committee has drawn up a roadmap to address problems in marketing halloumi PDO and is already active at both European and international level. It has identified target markets such as Australia, the UAE and Japan, aiming to include halloumi PDO in trade agreements. Panayiotou added that she personally raised producers’ concerns with her UK counterpart regarding difficulties linked to Brexit.
She stressed that strict checks are applied at every stage, from dairies to retail and exports, with close cooperation between the Agriculture Ministry, the Ministry of Commerce, the Health Services and the State General Laboratory, as well as with European partners to combat imitation products. Since October 2024, dairies have been required to record milk quantities through software, ensuring transparency in sheep and goat milk use.
Panayiotou also outlined support measures for livestock farmers, acknowledging the pressures of rising production costs. These include a pound 30 million investment programme for goat and sheep farming, launched in June 2025, as well as more attractive headage subsidies linked to productivity, with a pound 4 million annual budget. For 2025, two subsidy categories apply based on milk yields, with a transition to a single scheme by 2026-27.
Additionally, she referred to a plan to allocate 26 state-owned plots for large-scale livestock units, offering investment subsidies of up to pound 600,000. Fifteen applications have been received so far, while 25 livestock plots have already been granted.
?he military parade as part of the celebrations for the 65th anniversary of the declaration of independence of the Republic of Cyprus, is to take place at 9am on Wednesday, October 1, in Nicosia.
According to an announcement by the Ministry of Defence, President of the Republic, Nikos Christodoulides, will take the salute, in the presence of the Minister of Defence, Vassilis Palmas, Greece’s Deputy Minister of National Defence, Thanasis Davakis, and the Chief of the National Guard, Lieutenant General Georgios Tsitsikostas.
According to the announcement, the parade will be held on Iosif Hadjiosif Avenue, with the participation of various units and aircraft of the National Guard, the Cyprus Police, the Fire Service, the Civil Defence, the Department of Forests and the Public Health Services.
Ambassadors and Defence Attachés of foreign countries and other officials will also attend the military parade which is open to the public, it said.
The parade will begin with a 21-gun salute, it said.
Cyprus has been ranked second in Europe for improving its air connectivity between 2019 and 2025, according to the June 2025 report of the Aviation Council International, Deputy Minister of Tourism Kostas Koumis said on Monday.
Speaking at an event in Larnaca Castle to mark World Tourism Day, Koumis said that Cyprus continues to record positive results in tourist arrivals and revenues, while the sector leaves ‘a positive footprint on local businesses – a factor of particular importance for the government.’
He noted that promising signs are emerging from special forms of tourism and from off-peak months, which are showing marked improvement in arrivals and revenue. Extending the tourism season, he stressed, is key to achieving year-round tourism.
This year’s World Tourism Day theme, ‘Tourism and Sustainable Transformation,’ highlights the need for a universal shift toward sustainability, Koumis said. He warned that the effects of climate change are felt more acutely in the Mediterranean, where temperatures are rising 20% faster than in other regions, making adaptation harder for countries like Cyprus.
‘Our responsibility is greater, and so is the need to join forces between the public, semi-public, and private sectors,’ he said. Tourism, he added, must evolve into a sustainable model, requiring a change in mindset, investment in knowledge, and institutional reforms where needed.
Koumis outlined the ministry’s priorities, including strengthening individual destinations and infrastructure, enhancing hospitality in rural and mountain areas, upgrading training programs, and investing in sustainability and digital transformation. Artificial intelligence, he noted, will increasingly shape the industry, with the ministry already planning joint initiatives with the Deputy Ministry of Research and Innovation.
Koumis also announced a new project with the Cyprus University of Technology to document the history of Cyprus tourism. Through academic research, interviews, and historical data, the initiative aims to highlight how the past can guide the sector’s future development.
‘Despite the many adversities of the past three years, Cyprus tourism has not only returned to strong performance levels but stabilized them,’ Koumis said.
He noted that the main responsibility now lies in ensuring a smooth transition to the next phase of tourism, guided by the principles of sustainability, respect for the environment, and sound economic management.
Haiti Tuesday welcomed the decision of the United Nations Security Council to back a resolution authorising the transition of the Kenyan-led Multinational Security Support (MSS) mission for Haiti into a new Gang Suppression Force (GSF).
The resolution was moved by the United States and Panama and by a vote of 12 in favour to none against, with three abstentions, namely China, Pakistan and the Russian Federation), the Council adopted the text as resolution 2793.
Haiti’s representative at the UN Security Council, Ericq Pierre
Through the resolution, the Council authorised member states to transition the MSS mission to the GSF for an initial period of 12 months and among other terms, the Security Council has decided that the GSF shall have an authorised personnel ceiling of 5,550, consisting of 5,500 uniformed personnel, comprised of both military and police and 50 civilians.
US Ambassador Michael Waltz said the resolution, undertaken in close collaboration with the Haitian authorities, offered new hope for the French-speaking Caribbean Community (CARICOM) country where criminal gangs have been seeking to overthrow the provisional government since the assassination of President Jovenel Moise in July 2021.
Waltz said that the resolution is ‘a key first step’ to address the humanitarian and security crisis there, while Panama said ‘today we say to Haiti, once and for all, you are not alone.
‘The result today allows us to have the necessary reconfiguration on the ground in order to face the gangs and, therefore, address the insecurity situation in the country’.
Panama said that the Haitian people ‘cannot wait any longer’ adding ‘we are convinced that, with this initiative, the Security Council , on this occasion, is complying with its role as expressed in the UN Charter.’
Haiti’s representative Ericq Pierre said today’s decision to transform the MSS to the GSF ‘marks a decisive turning point in my country’s fight against one of the most serious challenges in its already turbulent history’.
Pierre said that while the MSS mission has been ‘a valuable support and a strong signal of international solidarity’ he noted that ‘the reality on the ground has reminded us that the scale and sophistication of the threat far exceeds the mandate initially granted to this mission’.
He said today as the Security Council grants a stronger, more offensive and more operational mandate it ‘is giving the international community the means to respond to the gravity of the situation in Haiti’.
Speaking on behalf of the 15-member CARICOM grouping of which Haiti is a part, the Barbados representative said the critical objectives for Haiti can only be achieved if security is restored.
‘In this regard, we wholeheartedly welcome the Security Council’s adoption today of this resolution as a fundamental step that responds to the urgency of the security situation in Haiti,’ the Barbadian diplomat said, adding ‘CARICOM in particular welcomes the timely transition of the Multinational Security Support mission to a Gang Suppression Force with a UN authorised mandate to bring an immediate end to violence and restore public safety in Haiti’.
CARICOM is also supporting the UN Support Office in Haiti ‘to provide the necessary logistical and administrative support for this robust force’.
Guyana’s ambassador to the UN, Carolyn Rodrigues-Birkett, speaking on behalf of her country as well as for Algeria, Sierra Leone and Somalia, said even though there was not sufficient time to consult ‘we approached the process with our foremost responsibility to the Haitian people, whose lives and livelihoods are directly impacted by the dire security crisis in the country.
Guyana’s ambassador to the UN, Carolyn Rodrigues-Birkett
‘We placed utmost priority on ensuring that there were adequate safeguards for the protection of human rights, including the rights of children, who comprise 50 per cent of gang membership.
‘Secondly, we also recognise our obligation to support and strengthen the efforts of Kenya, Barbados, The Bahamas, El Salvador, Guatemala and Jamaica as well as the other countries supporting the MSS mission,’ the Guyanese diplomat said.
Russia said that unfortunately, the tools of international assistance to Haiti pushed through the UN Security Council have failed to produce any sustainable results,, noting ‘and we have every reason to believe that this new mission, under yet another grand title, will meet the same fate’.
Russia said that no proper assessment of the efficacy, successes or failures of the MSS had been conducted, ‘instead, the Council is now being presented with a new idea, to create a mission independent of national and international oversight, with a virtually unrestricted mandate to use force against anyone and everyone labelled with the vague term ‘gangs’.
‘Do you not understand that ill-conceived and rushed steps may lead to outcomes that are completely contrary to our goals?,’ Russia asked.
Bermudians were being urged to closely monitor the passage of two hurricanes that could begin affecting the British Overseas Territory later on Tuesday.
The Emergency Measures Organisation (EMO) said that Hurricanes Humberto and Imelda were on track to pass ‘over or very near the island late Wednesday night into Thursday morning’.
National Security Minister, Michael Weeks, said the island faces ‘a serious week of weather’ between the two storms, adding ‘I strongly urge the public to prepare, stay vigilant and follow official updates from the Bermuda Weather Service (BWS).
‘These storms must be taken seriously, and I encourage all residents to make safety their priority and start preparations today.’
The Miami-based National Hurricane Center (NHC) said that the center of Hurricane Humberto was located near latitude 31.6 North, longitude 69.4 West and it is moving toward the north-northwest near 17 miles per hour (mph). It is located 275 miles west of Bermuda with maximum sustained winds of 100 miles per hour (mph).
‘A turn to the north is expected today, followed by a much faster northeast or east-northeast motion on Wednesday and Thursday. On the forecast track, the center of Humberto will pass west of, and then north of Bermuda today and Wednesday.’
The NHC said that continued weakening is forecast, with Humberto expected to become a strong extratropical system on Wednesday.
Regarding Hurricane Imelda, the NHC said that it is 755 miles west south west of Bermuda with maximum sustained winds of 75 mph.
It said that a Hurricane Watch is in effect for the island and that Imelda is moving toward the northeast near seven mph.
‘This general motion is expected through today, followed by a turn towards the east-northeast at a faster forward speed by tonight. On the forecast track, the center of the system should move away from the Bahamas today and quickly be approaching Bermuda late on Wednesday.’
The NHC said that the storm should gain strength during the next 48 hours.
Meanwhile, the EMO said that there were no plans to close the LF Wade International Airport and that while no flights had been cancelled, passengers were advised to check directly with their airlines.
Government offices and public schools were to run as normal for the next 24 hours, and there was no plan to activate an emergency shelter.
Two cruise ships, the Liberty of the Seas and the Norwegian Aqua, have already cancelled scheduled calls.
‘Bermuda has been through hurricanes before, and we know preparation saves lives and property. Please use this time to secure your homes, check on your neighbours and ensure you have the essentials you need,’ Weeks said.
Haiti Tuesday welcomed the decision of the United Nations Security Council to back a resolution authorising the transition of the Kenyan-led Multinational Security Support (MSS) mission for Haiti into a new Gang Suppression Force (GSF).
The resolution was moved by the United States and Panama and by a vote of 12 in favour to none against, with three abstentions, namely China, Pakistan and the Russian Federation), the Council adopted the text as resolution 2793.
Through the resolution, the Council authorised member states to transition the MSS mission to the GSF for an initial period of 12 months and among other terms, the Security Council has decided that the GSF shall have an authorised personnel ceiling of 5,550, consisting of 5,500 uniformed personnel, comprised of both military and police and 50 civilians.
US Ambassador Michael Waltz said the resolution, undertaken in close collaboration with the Haitian authorities, offered new hope for the French-speaking Caribbean Community (CARICOM) country where criminal gangs have been seeking to overthrow the provisional government since the assassination of President Jovenel Moise in July 2021.
The Central Bank of the Bahamas (CBB) says preliminary indicators are that the domestic economy grew at a moderated paced up through the month August, relative to the year earlier, as performance indicators continued to trend closer to their expected medium-term potential.
‘Notably, tourism output rose at a slower pace, as a result of more constrained activity in the high value-added stopover segment, although the cruise sector earning growth remained buoyant,’ the CBB said in the publication of its Monthly Economic and Financial Developments (MEFD) August 2025 report.
It said the unemployment rate increased for the first quarter of 2025, vis-à-vis the final quarter of 2024, owing in part to a decrease in employed persons, and a rise in the labour force participation rate.
The CBB said that monetary trends for August were marked by a contraction in banking sector liquidity, as the growth in domestic credit outpaced the rise in the deposit base. Further, external reserves decreased, underpinned by net foreign currency outflows through both the public and private sectors.
The Central Bank said that indications are that growth in tourism sector earnings slowed in comparison to 2024, owing to accommodation capacity constraints in the stopover segment. ‘Nonetheless, the cruise segment continued to register year-to-date robust gains and attract foreign investments in the development of onshore private destinations, despite a slowdown in the month of July.’
Official data provided by the Ministry of Tourism showed that for the month of July, total arrivals decreased by 3.3 per cent to 1.1 million visitors, vis-à-vis the same 2024 period. Specifically, sea passengers reduced by 3.8 per cent to 0.9 million. In addition, air traffic declined by 0.9 per cent to 0.2 million.
The CBB said that recent data from the Nassau Airport Development Company Limited (NAD) revealed that total departures, reduced by three per cent to 150,366 in August, relative to the same period last year.
In particular, US departures declined by 5.1 per cent to 130,911. In an offset, non-US departures rose by 14.5 per cent to 19,455.
The CBB said that in the short-term vacation rental market, data provided by AirDNA indicated that in August, total room nights sold rose by one per cent to 55,790.
‘However, given increased inventories, the occupancy rates for both entire place and hotel comparable listings declined to 36.9 per cent and 37. per cent, respectively, from 38.8 per cent and 42.1 per cent in the previous year.
‘The average daily room rate (ADR) for entire place listings increased by 11.8 per cent to US$510.78, compared to the prior year. Likewise, the average daily room rate (ADR) for hotel comparable listings moved higher by 1.1 per cen to US$173.47, relative to the comparative 2024 period.’
The CBB said that based on provisional quarterly estimates compiled by the Bahamas National Statistical Institute, labour market conditions deteriorated over the first quarter of 2025 as against the final quarter of 2024, owing in part to a rise in the number of unemployed persons, and a hike in the labour force participation rate.
In particular, the number of employed persons decreased to 214,725 in the first three months of 2025, relative to 218,240 in previous quarter, although marginally higher than the 213,585 persons recorded in the first quarter of 2024.
‘Correspondingly, the unemployment rate rose to 10.8 per cent in the first quarter from nine per cent in the prior quarter, and 8.7 per cent in the comparable period of 2024. Further, the youth unemployment rate increased by 2.9 percentage points to 20.9 per cent in the review quarter, as compared to same quarter of the preceding year.’
In August, the reduction in external reserves moderated to US$74.7 million from the US$92.4 million in the previous year, for an ending balance of US$2,888 million.
The CBB said underlying this outturn, the Central Bank’s net sale to commercial banks tapered to US$52.3 million, from US$75.4 million a year earlier. Similarly, commercial banks’ net foreign currency outflow to their customers declined to US$53.9 million, from US$85.8 million in the same period of 2024.
Meanwhile, the Central Bank’s net foreign currency outflow to the public sector widened to US$31.4 million, from US$23.9 million in the preceding year.
The Central Bank said that as economic indicators converge closer to their medium-term growth potential, the domestic economy is forecasted to expand at a slower pace in 2025, compared to 2024, mainly in line with tourism sector performance.
‘Notably, performance in the stopover segment-which is partially linked to movements in the US-sourced market-is expected to register moderated gains, against the backdrop of accommodation constraints and more subdued consumer confidence in the US. However, the cruise sector is expected to sustain robust growth-albeit a less dominant weight in earnings estimates.
‘Further, new and ongoing foreign investment projects, with a significant focus on onshore cruise attractions, are expected to provide impetus to the construction sector. Notwithstanding this, downside risks to the outlook have risen, due to increased tariffs on international trade, and uncertainties related to the major economies’ trade policies, which have the potential to slow tourism demand, and constrain global growth.’
The CBB said that other exogenous risks to the outlook remain relevant, including the direct and indirect effects of heightened geopolitical tensions and elevated global oil prices.