Financial assistance and advisory services are crucial for small and medium-sized enterprises (SMEs) in Cyprus to improve resource efficiency, as revealed by a recent Eurobarometer survey by the European Commission. Conducted with 248 SMEs, it shows that 59% of businesses see financing or subsidies as vital for enhancing their resource efficiency, while 31% would benefit from guidance on financing and planning.
Meanwhile, Cyprus’ refinancing needs are expected to remain manageable, projected at around 3% of GDP for 2025-2026 and about 4.5% in 2027, according to the Finance Ministry. The gross financing needs are estimated at approximately €11 billion for 2025 and 2026, increasing to €17 billion in 2027, against a backdrop of robust cash reserves covering nine months of financing.
In tourism, the Deputy Ministry is launching initiatives in 2025 to promote Cyprus, supported by a budget focused on advertising and partnerships. Notably, Limassol leads in high-value real estate, with significant sales recorded in September.
Additionally, energy efficiency grants have been expanded for businesses, while hotel occupancy rates surged to 80% in October, signaling a positive trend for tourism. The economic climate is improving, driven by the services sector and increasing optimism about continued growth due to recent interest rate cuts.
Despite rising rental rates impacting affordability, the government is implementing schemes to assist young families in home buying and address energy cost concerns, as MPs call for improved trust and transparency in regulatory bodies.