The President of the Republic, Nikos Christodoulides, described the strong and resilient economy as a driving force and a basic condition for the implementation of the Government's policies.

Presenting the second pillar of the government's planning for 2026, he said that the year began with the implementation of the Tax Reform, "one of the most emblematic changes of the last decades, and with the positive impact already being felt by everyone: Less tax burden, more disposable income".

In 2026, he added, the government is moving forward with another emblematic Reform concerning the Pension system of our country. "We are putting forward the bill for better and more dignified pensions, in a simple, meaningful and sustainable way, in order to strengthen our pensioners, to ensure adequate income, to reduce the gap between women and men," he said.

Furthermore, referring to the field of Innovation and Entrepreneurship, he noted that our country ranks 1st in Southern Europe and 15th worldwide, while it is in 1st place in the European Union in terms of Taxation and in 2nd place in terms of Entrepreneurship Incentives for innovative businesses.

"This performance reflects the results of our policies to create a friendly environment for Knowledge and Technology investments. And following the meetings in the United States that have already brought tangible results, we will continue in 2026 the strategy of strengthening Cyprus as a regional hub of Technology, Innovation and Entrepreneurship", said the President.

To further strengthen Competitiveness, the establishment of a Business Development Organization is being promoted, which will support and finance Entrepreneurship and Innovation, with an emphasis on small and medium-sized enterprises and start-ups. At the same time, the Companies Law is being modernized, with the aim of improving the business environment, simplifying and improving procedures, for less bureaucracy and more transparency.

At the same time, within 2026, the privatization procedures of the Cyprus Stock Exchange will proceed, thus strengthening its international competitiveness and the access of small and medium-sized enterprises to alternative sources of financing.

"With steady and methodical steps, we are working so that Cyprus can strengthen its role as a transit hub in the wider region" said the President and announced the decision for the creation of a modern Supply Chain network that will operate in synergy with the country's Ports and Airports. A central element of this great effort is the development of Special Supply and Storage Zones at Larnaca and Paphos airports. As he said, this is an initiative that highlights our country as a strategic partner in the India-Middle East-Europe (IMEC) corridor but also substantially strengthens its position as Europe's entry point for the Asian and African markets.

To serve both the local economy and the further expansion of the productive sector, he continued, "we are promoting the construction of the port in Vasiliko, for which the tenders for the construction works will be announced within 2026, while the studies for the development of the port of Larnaca are also being completed".

Strong economy

As the President said, "a Strong and Resilient Economy is a driving force and a basic condition for the implementation of our policies. The successive upgrades by all the Rating Agencies and the promotion of our country to category A for the first time since 2011, are a clear vote of confidence for our responsible economic policy. Public debt is expected to be limited to 50.9% in 2026, one of the lowest in the European Union, while the growth rate for 2025 is estimated at 4%, one of the highest in the Eurozone. At the same time, after more than 18 years, the labour market in Cyprus presents full-time employment conditions with youth unemployment falling significantly. And all this, in an unstable international environment and with Europe's strong economies being tested."

Tourism, he added, "remains a stable pillar of development for our country. In 2025, it once again set a double record, both in arrivals and revenue. In terms of arrivals, there was an increase of 12.2% compared to 2024. In terms of revenues, until November 2025 an increase of 15.3% was recorded compared to the corresponding period last year. With a vision of a quality, sustainable and competitive product, in 2026 we are working on a tourism model that integrates hospitality and services into the fabric of traditional settlements, revives the countryside, highlights new destinations and brings us closer to the goal of year-round tourism."

Excellent performance, he continued, is also recorded in the Shipping sector, one of the most dynamic pillars of the economy with the Cypriot registry increasing in the last two and a half years by 23%, the largest in 25 years, while the contribution of the ship management sector to the country's GDP has increased in one year by 17%.

Furthermore, as he said, Rural Development and the strengthening of the Primary Sector is a national necessity. In this direction, in 2025 we announced the largest investment program, with a total budget of 67.5 million euros.

"2026 marks, among other things, the drafting of the Ten-Year National Action Plan for Food Security, while through the Cyprus Presidency, we are promoting a new Common Agricultural Policy, which will respond to the modern needs and challenges of the Rural world," he added.