EU expects Cyprus economy slowdown as war triggers fresh energy shock

EU expects Cyprus economy slowdown as war triggers fresh energy shock

The European Commission on Thursday released a report forecasting a slowdown in Cyprus’ economic growth alongside rising inflation, as the Middle East conflict triggers a fresh energy shock. In its Spring 2026 Economic Forecast, the commission said that Cyprus entered the crisis on a strong footing, supported by solid economic performance in 2025, but warned that the conflict’s impact is expected to be felt in the short term through higher infla…