The European Commission expects the Cypriot economy to continue to grow in 2025 and 2026 thanks to domestic demand, with the export of services expected to remain robust despite the international situation, noting however that risks of indirect negative spillovers resulting from global trade disruptions remain a risk. The predictions are included in the Spring 2025 Economic Forecast of the European Commission, which expects the EU to see moderate growth amid the global economic uncertainty caused by US tarrif policy.