A report by Fitch Ratings, on Monday, which refers to Cyprus, as well as the recent double upgrade of the Cypriot economy by Moody's, highlight the resilience and the upward trend of the Cypriot economy, said Government Spokesperson Konstantinos Letymbiotis.

During a briefing to journalists at the Presidential Palace on Tuesday, Letymbiotis referred to a report released yesterday by Fitch Ratings, in which it analyses economic developments in the European Union, with references to Cyprus confirming, as he said, the positive course of the Cypriot economy.

The Spokesperson said that according to the rating agency, Cyprus continues to benefit from the economic consolidation it has implemented, noting that its economy remains resilient despite external challenges. Fiscal performance is improving, it was added, while Cyprus has managed to reduce public debt to more sustainable levels. In addition, GDP growth is expected to remain positive, with a gradual restoration of the country's strong economic foundations, despite uncertainties in the wider EU region and the world.

The agency says it maintains a positive outlook for Cyprus (BBB+), reflecting continued progress in reducing long-term macroeconomic and external imbalances and improving fiscal performance.

"Overall, Fitch's report acknowledges Cyprus' positive trajectory and signs of consolidation in its economy, and highlights that the country remains on a positive path for the coming years, although external risks remain," the Spokesperson said.

He added that yesterday's announcement by Fitch Ratings in conjunction with the exceptional double upgrade by Moody's on November 22, 2024, according to which Cyprus is now in A grade for the first time in 13 years, are a "self-evident vote of confidence" in the Cypriot economy, the Government's policies and the collective efforts of the state and society which are yielding "tangible results."

"The continuous, successive upgrades of the Cypriot economy prove the resilience and the upward trend of our economy, elements that are necessary conditions for the improvement of the daily life of households and businesses," he noted.

He also said that Cyprus' upgrade creates a more favourable environment for households and businesses, enhancing economic growth, reducing borrowing costs and boosting confidence in the country's economic prospects. Businesses and households, he added, can benefit from a more stable and favourable economic situation, with prospects for improved quality of life and more opportunities.

He further explained that through the upgrading of the Cypriot economy’s credit rating, reduced borrowing costs are possible and the country is seen as more reliable for investors, which, he said, can lead to lower interest rates on loans for households, whether for housing loans, consumer loans or loans for small businesses.

At the same time, he said that through boosting investor and external business confidence, the chances of attracting more investments in Cyprus, both domestic and foreign, increase as the upgrade creates a sense of stability and long-term growth. This improvement in the country's competitiveness, he said, leads to increased job opportunities and higher earnings.

Finally, he pledged that on this steady path, the Government would continue to pursue responsible policies.