The Canadian ratings agency DBRS has reaffirmed Cyprus’ positive economic trajectory, maintaining the country’s sovereign rating at “A” with a stable outlook.
In its latest report, DBRS said Cyprus’ GDP grew by 3.8% in 2025, while public finances continued to show structural surpluses. Public debt fell to 60.6% of GDP last September, the agency noted.
However, DBRS warned that the recent escalation of hostilities in the Middle East has increased uncertainty around Cyprus’ short‑term economic prospects, given the island’s geographic proximity to the region.
The agency said the impact could be particularly significant for the tourism sector, which has been a key driver of growth in recent years.
It also cautioned that prolonged high global energy prices could weaken household purchasing power and weigh on private consumption.
Reacting to the assessment, President Nikos Christodoulides wrote on the platform X that the rating “constitutes another strong vote of confidence in our economy, especially at a time of multi‑layered challenges in our region.” He said Cyprus continues to demonstrate resilience and credibility by maintaining fiscal stability and steady growth.
Finance Minister Makis Keravnos said the confirmation was “particularly encouraging,” noting that despite global instability linked to the intensifying conflict in the Middle East, international rating agencies such as DBRS Morningstar continue to express full confidence in the Cypriot economy, citing its strong performance in recent years.