Cyprus Economy Faces Hidden Risks, Fiscal Watchdog Warns

Cyprus' economy has shown resilience to external shocks, with positive growth numbers and low unemployment. However, the Fiscal Council warns of hidden risks, including a high reliance on migration and an ageing population, which may impact future growth. The council also highlights chronic weaknesses in public finances, such as low public investment and inadequate social spending. Inflation has risen, particularly due to Cyprus' weakness in transitioning to 'green energy'. The Fiscal Council urges the government to address these issues to maintain the economy's positive status.