Scope Ratings projects Cyprus economy to grow around 3% annually over the next five years.

Markets:

• Alpha Bank will announce its 9M25 Financial Results on Friday 7/11/2025.
  Source: ATHEX

Macro/ Political:

• Scope Ratings, in research published yesterday, mentioned that the agency expects Cyprus’s economy to deliver robust economic growth averaging around 3% per year for 2025-30, which, together with solid budgetary performance, should ensure that debt-to-GDP will decline below 50% in the following years from 65% in 2024. Furthermore, the agency highlighted those multiple shocks, such as Covid, Russia’s invasion of Ukraine, and higher inflation, have tested Cyprus’s resilience in recent years, but the country’s public finances have held up well. The government has recorded rising budget surpluses and overseen a reduction in financial imbalances, leaving debt-to-GDP at 65%, almost 49 percentage points below its peak of 113.6% in 2020. Finally, the agency noted that Cyprus’s financial stability is also improving, supporting the country’s resilience amid the less favourable external environment of higher US tariffs and moderate growth in the euro area. In the banking system, the NPL ratio continues to decline, while banks have improved their loan-loss absorption capacity, based on the rising NPL coverage ratio and the upcoming introduction of a countercyclical capital buffer, effective from January 2026.
  Source: Scope