Central Bank of Cyprus cuts growth forecasts amid Middle East tensions

The Central Bank of Cyprus (CBC) has lowered its growth forecasts for the Cypriot economy for 2026 and 2027, pointing to the impact of the war in the Middle East and warning that risks remain tilted to the downside.

In its June 2026 economic bulletin, the CBC said it now expects GDP to grow by 2.5 per cent in 2026, down from the 2.7 per cent forecast in March. Growth in 2027 was also revised slightly lower, to 2.9 per cent from 3 per cent, while the economy is expected to accelerate to 3.1 per...