Central banks must look past headline inflation and examine how energy shocks and artificial intelligence are reshaping economic activity, financing conditions and financial stability, Central Bank of Cyprus governor Christodoulos Patsalides said on Wednesday.

He also warned that the combination of geopolitical disruption and rapidly expanding technology investment is creating increasingly complex challenges for policymakers.

Addressing an MNI Connect video conference with economists, investors and financial market participants on November 11, Patsalides, who is also a member of the European Central Bank’s Governing Council, said the persistence of the energy shock and the rise of artificial intelligence were two developments requiring particular attention.

The €1.3 billion investment plan underpinning Limassol’s climate transition will require substantial private-sector and institutional financing, with the municipality seeking new funding mechanisms and public-private partnerships to advance major urban regeneration projects, including the redevelopment of Aktaia Odos.

Limassol Mayor Yiannis Armeftis made the case for greater private-sector involvement earlier this week, during the Better Funding Dialogue workshop at the Panos Solomonides Cultural Centre, where representatives of financial institutions, investors, public authorities and businesses examined ways of making sustainable urban development projects more attractive to investors.

The discussions, which took place on Tuesday, focused particularly on how private capital, institutional investment and innovative financing instruments could help deliver the regeneration of the coastal road behind Limassol port, while supporting the city’s wider ambition to become climate-neutral.

Cyprus’ state workforce rose to 55,317 employees in October 2026, an increase of 341 people or 0.6 per cent from 54,976 a year earlier, according to figures released on Wednesday by the statistical service (Cystat).

The increase was driven largely by employment growth in the security forces, where staffing rose by 2.8 per cent, while the educational service recorded a smaller increase of 0.7 per cent. By contrast, civil service employment declined by 0.7 per cent.

The security forces recorded the largest increase in staff, adding 380 employees to reach 14,065, compared with 13,685 in October 2025.

Cyprus tourism bookings for 2027 are running 8 to 12 per cent below comparable levels for this year, as rising energy costs, inflation and more expensive flights weigh on holiday demand, despite plans by major tour operators to increase airline capacity to the island.

The early slowdown has raised concerns among hoteliers, particularly over demand from Britain, Cyprus’ largest tourism market, although the government remains cautiously optimistic about next year’s prospects, according to a report by Politis on Wednesday.

The Cyprus Hoteliers Association (Pasyxe) has reported weaker advance reservations, with director-general Christos Angelides warning that the pressure on household budgets is beginning to affect holiday decisions.

Nearly one in three people in Cyprus were unable to cope with unexpected financial expenses in 2025, although the proportion has fallen steadily over recent years, according to a report published on Wednesday by Eurostat.

The share of the population facing this difficulty stood at 32 per cent in 2025, down from 34.8 per cent in 2024 and considerably below the 46.7 per cent recorded in 2019.

The figures point to a gradual improvement in households’ ability to withstand unforeseen costs, but also show that a substantial proportion of the population remains financially vulnerable.

Nearly four-fifths of foreign direct investment in Cyprus originated from countries outside the European Union in 2025, the highest proportion among the 14 EU member states reporting figures to Eurostat.

The share of investment coming from non-EU economies stood at 79.4 per cent in Cyprus, highlighting the country’s strong links with international investors beyond the bloc.

Cyprus recorded by far the largest proportion of non-EU investment among the reporting countries, with the figures showing that its foreign investment profile differs markedly from that of most other EU economies.

Eurobank is preparing to introduce a new financing tool for Cyprus’ agricultural sector in the first quarter of 2027, aiming to help farmers and livestock producers fund investments approved for support under the EU’s Common Agricultural Policy (CAP).

The bank outlined the initiative during this year’s Pancyprian Milk, Agriculture and Livestock Conference, held in Nicosia with its support, where the challenges and development prospects of the primary sector were discussed.

The proposed facility is designed to address a financing gap faced by CAP grant beneficiaries who have secured approval for subsidies but lack the liquidity to carry out their investments before the grants are paid.

Louis plc shareholders on Wednesday approved a €100.3 million debt restructuring and refinancing transaction involving the group and several related parties, while also endorsing the company’s 2025 annual report and re-electing three directors.

The decisions were taken at the company’s 27th annual general meeting, held at the Hilton Nicosia earlier today, followed by an extraordinary general meeting at 12.30pm to consider the proposed restructuring and refinancing of the group’s borrowing.

The transaction, which has a nominal value of €100.3 million, covers bond loans, loan facilities and security arrangements, according to the company.

The Cyprus Real Estate Agents Association (Skek) has called on the government and parliament to urgently reform the legal framework governing the property sector, warning that longstanding regulatory problems continue to affect legitimate estate agencies and undermine fair competition.

The association, which is a member of the Cyprus Chamber of Commerce and Industry (Keve), made the appeal during a press conference held at Keve headquarters on Wednesday, under the title ‘Outstanding issues in the real estate sector and the need for institutional changes’.

The conference presented Skek’s positions and proposals on persistent problems affecting legally operating estate agencies and was attended by Keve secretary-general Marios Rousounidis.

Nearly 70 companies operating from Cyprus are reported to generate annual turnover exceeding €100 million, with technology, shipping, energy and international trade producing some of the biggest figures in the country’s corporate sector.

Leading the pack are ASBIS Group, with turnover of around €3.4 billion, Island Energies, formerly Island Oil, with more than €1.5 billion, and Logicom Group, with approximately €1.2 billion.

The figures reflect the scale of businesses operating from Cyprus, where companies with relatively small domestic footprints can generate billions in sales across international markets.

The Cyprus Chamber of Commerce and Industry (Keve), in cooperation with the Federation of Saudi Chambers, will hold an online presentation on November 12, outlining support services available to Cypriot businesses seeking to establish or expand operations in Saudi Arabia.

The presentation, scheduled to take place through Microsoft Teams between 10am and 11am, will introduce the International Business Concierge (IBC), a comprehensive business support service designed to help international companies and investors enter the Saudi Arabian market, establish a local presence and develop their activities.

The initiative provides integrated assistance throughout the business establishment process, covering everything from company formation and investment licensing to ongoing operational and regulatory requirements.

Emirates is expanding its Premium Economy offering across Europe for the 2026-27 winter season, with the upgraded cabin now available at 31 of its 41 destinations across Europe and the United Kingdom, as the airline increases flight frequencies and connections for passengers travelling through Dubai.

The airline announced the expansion this week, saying it would operate an average of 78 daily flights between Dubai and Europe during the winter schedule, while adding 31 weekly flights to popular destinations including Cape Town, Nairobi, Phuket, Hanoi, Manila, Tokyo Narita and Accra.

The developments are also relevant to passengers travelling from Cyprus, where Emirates has maintained a presence since 1994 and has carried more than 2.1 million passengers over the past 32 years.

The Cyprus Chamber of Commerce and Industry (Keve) will host a high-level round-table discussion in Nicosia on November 13, bringing together government officials, business representatives and diplomats to explore ways of strengthening Cyprus’ economic and investment cooperation with India, Gulf Cooperation Council (GCC) member states and Kazakhstan.

The closed-door meeting will take place at Nicosia Town Hall between 9.30am and 12.30pm, as part of the CFS Business & Investment Forum 2026, which will be held at the Royal Hall in Nicosia.

Organised by Keve in collaboration with the Municipality of Nicosia, the discussion will focus on expanding Cyprus’ international economic relationships and identifying investment opportunities with strategically important markets.

Businesses are seeing stronger returns from artificial intelligence investments, but their ability to deal with the risks is falling behind, according to a new global report by technology services provider Kyndryl.

The company’s third annual Readiness Report found that 64 per cent of business leaders reported positive returns from their AI investments, an increase of 10 percentage points compared with 2025.

However, the average level of preparedness for external risks fell by seven percentage points to just 24 per cent, with the sharpest declines recorded in cybersecurity and companies’ ability to respond to changes in competition.

Cyprus banks continued to offer lower interest rates on deposits than their eurozone counterparts in September 2026, while charging less for housing loans and most business lending, according to detailed figures published by the Central Bank of Cyprus (CBC) on Wednesday.

The data, which cover individual banking institutions, show that the average interest rate on household deposits with maturities of up to one year stood at 1.62 per cent in Cyprus, compared with 2.33 per cent across the euro area.

The difference was similarly pronounced for businesses, with the average rate offered on new term deposits by non-financial corporations reaching 1.70 per cent in Cyprus, against 2.46 per cent in the euro area.