Strong investment activity, increased innovation, and enhanced resilience are recorded by the business sector in Cyprus, despite the uncertain international environment and geopolitical pressures, according to the latest European Investment Bank (EIB) Investment Survey.
According to the survey data, almost all Cypriot businesses continue to invest, focusing on digitalization, artificial intelligence, and adapting their supply chains. However, the overall business climate remains more cautious compared to the EU average. At the same time, climate action is strengthened, mainly through waste reduction and recycling. The transition to stricter environmental standards is seen more as a challenge than an opportunity.
The survey records strong optimism for the future, despite international trade disruptions. Supply chain pressures have significantly reduced as businesses increased their inventories and diversified their import sources. The percentage of businesses reporting difficulties accessing raw materials dropped to 20%, from 41% a year earlier.
94% of Cypriot businesses made investments in the previous financial year, a higher percentage than both 2024 and the EU average (86%). Additionally, more businesses in Cyprus expect an increase in investments this year (10%, compared to 4% in the EU). Investments mainly concern replacing existing equipment (54%). Fewer businesses invest in expanding production capacity compared to Europe.
EIB Vice President Marek Mora stated that Cypriot businesses “continue to invest, digitalize, and strengthen their resilience,” emphasizing that the increasing use of artificial intelligence and commitment to innovation reflect a private sector with a long-term orientation.
