The Cypriot economy faces two major challenges at once. The first relates to the Iranian crisis, the second to the foot-and-mouth disease outbreak in livestock.
On the energy front, rising costs are expected to reignite inflation, further burdening an already high cost of living. In tourism, booking cancellations are creating a chain reaction across the entire economy.
The livestock crisis threatens dairy exports and food production if current measures fail to deliver results.
Both crises, however, are not as alarming as they appear — provided they are addressed promptly and adequately. The critical question remains: how quickly and effectively can Cyprus manage the surge in energy costs?
The two crises add to existing structural weaknesses: low creditworthiness of citizens, productivity deficits, high housing costs, and a widening trade deficit. These are hidden behind public debt and deficit indicators, but now the real picture will emerge.
What is needed is genuine analysis based on hard data — not wishful thinking, not estimates, but facts. Only then can the right decisions be made.
