Cyprus Economy Under Pressure: Inflation Rising, Banks and Tourism at Risk
The Central Bank of Cyprus has drastically raised its inflation forecast for 2026 from 0.8% to 2.7%, fueled by rising energy prices following Middle East conflicts. According to Morningstar DBRS, Cyprus and Greece are particularly exposed as tourism and shipping play disproportionately large roles in their economies. Asian markets already recorded losses while Brent oil heads toward a monthly record.