Cyprus’ economy continues to present a positive picture, with growth reaching 3.8% in 2025 and expected to remain around 3% in 2026, while public finances remain in surplus and public debt has fallen to 55% of GDP. However, geopolitical developments, energy dependence, low productivity, demographic changes and persistent weaknesses in public investment pose significant risks to the economy’s medium- and long-term prospects, the Fiscal Council said on Thursday.