The estimate that the growth rate of the Cypriot economy will be around 3.5% in 2026, possibly among the highest in the Eurozone, was expressed by the President of the Republic Nikos Christodoulides during his meeting with the Executive Committee of OEB at the Presidential Palace.
The President reiterated that the Government approaches the Federation of Employers and Industrialists as a partner in the effort to modernize the state, through continuous and bold reforms.
He referred in particular to the tax reform, arguing that the reduction of taxation has boosted the disposable income of households and businesses.
At the same time, he described the reform of the pension system as particularly important, noting that this is the most important change in this sector since 1980. As he mentioned, the Government seeks on the one hand the payment of more decent pensions and on the other hand to ensure a sustainable Social Insurance Fund for future generations.
Historic high in employment
President Christodoulides also referred to the latest data of the Statistical Service on the labour market, noting that the best performance since 1999, when the Labour Force Survey began to be conducted, was recorded.
According to him, employment reached an all-time high, while unemployment fell close to 2008 levels. He described the significant reduction of unemployment among young people, which he presented as one of the main goals of the Government, as particularly encouraging.
The President attributed the positive performance of the economy to the government's economic policy, the multi-level foreign policy and the reform plan. At the same time, he acknowledged the contribution of Cypriot businesses, underlining that they play a decisive role in the development and progress of the country.
As he noted, this performance is recorded at a time when war is underway in the immediate neighbourhood of Cyprus and strong European economies are facing significant challenges.
"The benefit of growth should return to society"
Nikos Christodoulidis stressed that economic growth must be transferred to society and its benefit must return to the citizens.
"That is why we support families, strengthen disposable income and improve the daily life of the citizen," he said, adding that the development path allows the Government to invest in Education, Health, housing policy and the welfare state.
He also announced new important government interventions in the immediate future, without giving further details.
In closing, he thanked OEB and its members for their contribution to the economy, reiterating that the Government treats them as partners. At the same time, he expressed the expectation for a substantive discussion on issues that concern both the business world and the Government as well as the Cypriot society in general.
