Cyprus is staying true to its commitment to strict fiscal discipline even as it supports economically vulnerable groups and the middle class. This comes after credit rating agency Standard and Poor’s (S&P) raised the country’s rating to BBB+ from BBB.
President Nikos Christodoulides emphasized that the ratings upgrade validates the effectiveness of the government’s economic policies, including responsible fiscal measures, banking sector stability, and ongoing reforms. The positive outlook maintained by the agency suggests that further upgrades could be on the horizon in the next two years, contingent on banks reducing bad loans and Cyprus shrinking its current account deficit.
Christodoulides highlighted the importance of international market access and foreign investments in sustaining Cyprus’s economic growth. According to S&P’s rationale for the upgrade, the agency anticipates the Cypriot economy to expand by an average of three percent of GDP over the next three years. Additionally, they project the country’s debt to decrease below 60 percent by 2027, thanks to robust fiscal surpluses averaging 2.1 percent of GDP over the next three years – a forecast deemed the strongest among all 20 eurozone members.
Maintaining fiscal discipline while fostering economic growth and stability remains a top priority for Cyprus. The government’s commitment to responsible financial policies and continuous reforms has been recognized through the recent credit rating upgrade. With a positive outlook for the future, Cyprus is poised to attract foreign investments and sustain its growth trajectory in the years to come.