Here are the top business stories in Cyprus from the week starting August 4:
Cyprus recorded the lowest annual inflation rate among eurozone countries in July 2025, with consumer prices rising by just 0.1 per cent year-on-year, according to preliminary data released by Eurostat.
This represents a further slowdown compared with the 0.5 per cent recorded in June.
Monthly inflation in Cyprus stood at 0.4 per cent, based on the provisional figures.
Across the eurozone, annual inflation remained steady at 2.0 per cent, unchanged from June.
Among member states, the highest inflation rates for July were recorded in Estonia at 5.6 per cent, Croatia at 4.5 per cent and Slovakia at 4.5 per cent, while the lowest were observed in Cyprus at 0.1 per cent, France at 0.9 per cent and Ireland at 1.6 per cent.
Speaking to the Cyprus News Agency (CNA), Yiasemides also said that he considers the European Union–United States agreement to be unbalanced for the EU.
At the same time, he said that the new tariffs announced by Donald Trump are causing problems in the supply chain.
He added that the fact that the euro has strengthened against the dollar is also weighing on the EU, making European products more expensive, with tariffs combined with a 10 to 15 per cent increase due to the exchange rate.
Yiasemides said that “uncertainty remains because many agreements have not been finalised while the new announcement by US President Donald Trump regarding the imposition of tariffs on a large number of countries is causing reactions and problems in the supply chain”.
In an interview with Politis, Patsalides stressed that Cyprus needs to fortify its economic resilience by building fiscal buffers, maintaining surpluses, and investing in strategic sectors that can shield the economy from future shocks.
“The era we are living in is full of uncertainties; geopolitical, technological, environmental,” he said.
“We must be ready for every scenario, build reserves, safeguard our surpluses and invest in sectors that will strengthen the resilience of the Cypriot economy,” he added.
The transaction was carried out by its wholly owned subsidiary, Ergomakers Ltd, and the total consideration amounts to €102.78 million, excluding value-added tax.
The announcement was made through the regulated market of the Cyprus Stock Exchange (CSE).
In an official statement to the exchange, the company confirmed that the sale represents a material change in its financial state and capital structure.
“The Oceanus office tower has been sold as part of the ongoing Limassol Blu Marine development,” said company secretary Stavros Leptos.
Cyprus recorded a general government budget surplus of €557.6 million (1.6 per cent of GDP) in the period from January to June 2025, according to preliminary figures released by the state statistical service on Monday.
This marked a slight increase from the €550.7m (also 1.6 per cent of GDP) surplus recorded during the same period in 2024.
Total revenue in the first half of 2025 rose by €393.6m, equivalent to a 5.9 per cent year-on-year increase, reaching €7.1 billion, up from €6.7 billion in the first six months of 2024.
Revenue from taxes on income and wealth grew by €171.3m, amounting to a 12.0 per cent rise, to reach €1.6 bn, compared to €1.4 bn in the same period of the previous year.
At the core of this evolution is a growing recognition among policymakers, business lead ers and technologists that the digital economy is no longer optional, it is foundational.
According to Georgios Komodromos, an official at the deputy ministry of research, innovation and digital policy, digital transformation is crucial in improving the country’s competitiveness and economic growth.
“The vision of establishing Cyprus as a regional hub for innovation and technology is closely linked to the country’s digital transformation and the creation of a comprehensive digital ecosystem,” Komodromos stated.
Cyprus surpassed its pre-pandemic tourism figures in 2024, as international arrivals and revenues rose sharply, aligning with a global rebound that brought worldwide travel nearly back to 2019 levels, according to data from the UN World Tourism Organisation (UNWTO) and Eurostat.
The island welcomed over 4.04 million international visitors in 2024, overtaking its previous record of 3.977 million set in 2019. Tourism revenue climbed to €3.2 billion, up 7.3 per cent year on year.
The upward trend continued into 2025, with April arrivals rising 25.5 per cent and May up 13.7 per cent compared to the same months in 2024. From January to May, the number of visitors reached 1.34m, a 14.9 per cent increase on an annual basis.
The UK remained the largest source market for Cyprus, accounting for more than a third of all visitors in the first half of the year.
Israel, Germany, Poland, Sweden and Greece followed. Spending mirrored this demand, with May 2025 revenue reaching €373.3m, up 20.2 per cent year on year, and total receipts for the first five months of the year rising to €955.8m, a 27.2 per cent annual increase.
Cyprus’ real estate market remains resilient and in high demand, with a strong start to 2025 confirming last year’s momentum, according to Cyprus Real Estate Agents Registration Council president Marinos Kyneyirou.
In a statement released on Monday, Kineyirou said that demand remains high from both local buyers and foreigners, particularly from third countries such as Israel and Lebanon.
Geopolitical tensions, he noted, do not appear to have dampened their appetite for investment, which in many cases concerns large-scale transactions.
Kyneyirou explained that the most encouraging element of the current environment is the supply of available properties, as the market offers a wide range of options that can meet the needs of buyers.
He added that if no serious external disruptions occur in the coming months, everything indicates that buying interest will be maintained throughout 2025, with prices remaining stable at current levels.
August is historically the busiest month for Larnaca and Paphos airports, and in 2024, traffic surpassed 1.6 million passengers for the first time.
According to Hermes, volumes have remained high since the beginning of 2025, and this year’s figures may exceed last summer’s record.
In view of the anticipated surge, the airport operator is advising passengers to arrive at least two hours before their flight.
However, as it noted, updated guidance may be issued through social media, recommending even earlier arrival during peak hours.
According to the Q1 2025 Quarterly Statistical Bulletin, Cyprus had a total of 322 Management Companies and Undertakings for Collective Investment (UCIs) by the end of March, of which 254 were active.
Total Assets Under Management (AUM) reached €10.7 billion, marking a 6.6 per cent increase compared to the previous quarter and an 18 per cent rise year-on-year. In addition, Total Net Asset Value (NAV) stood at €9.9 billion.
According to CIFA, the importance of domestic investments, which amounted to €2.9 billion and accounted for 27.2 per cent of the total AUM. This, she noted, is particularly important for the development of the Cypriot economy.
The measures follow the earlier announcement by the Association of Cyprus Banks and are aimed at providing immediate relief to those impacted and facilitating the swift restoration of damaged properties.
“The Bank of Cyprus is expressing its support for the citizens and businesses of mountainous Limassol affected by the recent fires by implementing a framework of measures aimed at immediate relief and the rapid restoration of damages,” the bank said in its statement.
In addition to the mobilisation of the bank’s SupportCY volunteer corps, which assisted from the very first moment by supporting state efforts to protect lives and homes and by strengthening fire defences in threatened areas, the bank is now rolling out financial support options.
In a post shared on the company’s official LinkedIn page, Hermes Airports stated that “July 2025 was officially the busiest month in the history of Cyprus airports,” surpassing all previous records.
The company pointed out that this performance overtook not only July 2024, but also the figures recorded in August last year, which had until now been the most active month on record.
Passenger traffic for the first seven months of 2025 also showed a strong upward trend.
Hermes reported that “from January to July 2025, we’ve already welcomed 7.3 million passengers,” reflecting a remarkable 11.4 per cent increase compared to the same period in 2024.
As shown in the company’s uploaded picture, Larnaca airport handled 1,201,023 passengers in July, marking a 13.5 per cent increase over July last year.
Limassol continued to dominate Cyprus’ high-end property market in the first half of 2025, accounting for six of the ten most expensive transactions nationwide, with a combined value of €105.7 million, according to real estate analytics firm Ask Wire.
The highest-value deal during the period was the €44.8 million sale of part of an apartment complex in Tsiflikoudia, Limassol.
Meanwhile, two sales in Nicosia followed, including a €29.3 million office space in Ayioi Omologites and a €12.5 million plot in Engomi, totalling €41.8 million.
Paphos also recorded two top-tier transactions, most notably, a €13.9 million field in Ayios Theodoros and a €7.6 million house in Kato Paphos, amounting to €21.5 million.
Altogether, the 50 highest-value real estate transactions in the first half of 2025 totalled €306.1 million, with Limassol alone contributing 43.1 per cent (€132 million).
Nicosia followed with €67.4 million (22 per cent), while Paphos reached €54.6 million (17.8 per cent). Larnaca and Famagusta recorded €27.8 million and €24.3 million respectively.
The response so far to the affordable housing schemes has been encouraging, according to Interior Minister Constantinos Ioannou.
He also said that the Cyprus Land Development Corporation (Koag) is planning in the coming years to build and release to the market new affordable housing units for sale and rental.
Regarding the housing grant scheme for young couples and young people up to 41 years of age, which includes the first call in 2024 and second call in 2025, a total of 525 applications were submitted.
Out of these, 152 applications were approved, corresponding to financial support of around €5.4 million.
Another 200 applications are still under evaluation, 172 were rejected, and one was withdrawn.
The average interest rate on new loans to Cypriot households is now almost aligned with the eurozone median, while for businesses the margin stands at 0.24 per cent, according to the Central Bank of Cyprus (CBC).
At the same time, the CBC said that deposit interest rates in Cyprus for new deposits remain at the lowest level in the eurozone.
In its June 2025 bulletin titled “Cypriot Interest Rates in a European Context: Analysis and Comparison”, the CBC reported that the level of lending rates on outstanding loan balances in Cyprus is approaching the corresponding eurozone median.
The margin has narrowed to 0.09 per cent for households and 0.44 per cent for non-financial corporations.
Moreover, the level of interest rates on new loans in Cyprus is also comparable to the eurozone median.
The firm maintained its “buy” rating on Eurobank shares, reaffirming a price target of €3.70 and citing strong second-quarter performance and the bank’s robust international footprint.
Roughly half of Eurobank’s profits are now generated outside Greece, underlining its position as the most diversified franchise among its domestic peers.
Return on tangible book value reached an impressive 16.6 per cent in the second quarter, driven by a 15 per cent quarterly increase in fee income, which helped offset a slight one per cent decline in net interest income.
According to an official announcement, these portfolios are tailored primarily for institutional investors, as well as for other investors seeking solutions aligned with environmental, social, and governance (ESG) principles.
“This collaboration marks a significant development in the Cypriot financial services sector,” the Bank of Cyprus stated.
It explained that it brings together CISCO’s extensive experience in managing institutional mandates with Schroders’ global expertise in sustainable and impact investing.
The conference, held in Awaza, Turkmenistan, earlier this week, was attended by the UN Secretary-General, heads of state and government, ministers, and representatives from more than 120 countries and other international and regional organisations.
During the meeting, participants reaffirmed their commitment to the Sustainable Development Goals, with a strong emphasis on connectivity, trade facilitation, digital transformation and climate resilience.
Hadjimanolis said Cyprus aligned itself with the positions of the European Union, welcoming the Awaza Programme of Action for the Decade 2024–2034, adopted by the UN General Assembly in December 2024.
She described it as “a substantial roadmap for the empowerment of the least developed countries, aiming to accelerate progress and inclusive development of LLDC worldwide.”
According to the announcement, the company offered a three-month internship to undergraduate students pursuing studies in maritime or related disciplines.
Three undergraduates from the Cyprus University of Technology and Frederick University participated in this year’s programme.
They worked alongside professionals at DP World Limassol, contributing to various projects and gaining exposure to real operational processes.
Through this experience, the company explained, the interns enhanced both their technical abilities and interpersonal skills.
According to an announcement released on Friday, the gatherings attracted dozens of licensed real estate agents and “provided a platform for direct dialogue and the exchange of views between professionals and the council“.
“During the meetings, the council’s president and members of the board engaged with participants, listening to their concerns and suggestions and offering detailed updates on current issues facing the real estate sector,” the council mentioned.
It added that “the turnout and active participation of agents exceeded expectations, confirming the importance of such initiatives in strengthening the profession”.
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