Cyprus government evaluates economic measures amid regional instability

Cypriot government spokesman Konstantinos Letymbiotis announced on Tuesday that the state is continuously monitoring the impact of the Middle East conflict on the national economy. Current support measures, including electricity subsidies and a zero VAT rate on essential goods, remain in effect until April 1. Officials are evaluating whether to extend these measures beyond the April 1 deadline, with final decisions to be communicated by the Ministry of Finance and the Ministry of Energy, Commerce, and Industry in due course. The government highlighted that 95-octane unleaded gasoline prices in Cyprus remain the second lowest in the European Union, while diesel prices rank as the fourth lowest. Separately, President Nikos Christodoulides reaffirmed that Cyprus remains a safe destination for tourism and investment despite geopolitical tensions. He noted that the tourism sector has seen a 40 percent increase in arrivals and a 50 percent increase in revenue over the last three years. The President emphasized that the state’s strong fiscal foundations provide the necessary buffer to navigate ongoing regional crises.