In the second upgrade of the Cyprus economy in as many weeks, Fitch raised the island's prospect from stable to positive, keeping the rating at A-, and prompting the finance minister to say this was tangible evidence of 'excellent economic performance'.
The American credit rating agency had a three pronged approach that led to its positive assessment. primarily the 'dramatic drop in public debt during 2022-2025', falling under the landmark 60% of GDP (55.4%) in 2025, and below the EU median.
Also significant in determining the Cyprus financial outlook, was the prediction that a surplus will carry through to 2027, at an average of 3.2%, while a sturdy growth is predicted to rise to 3.4% in 2025 and keep a 3% threshold over the next two years beyond, triple the Eurozone average of 1%.
Fitch also took into account ‘very good employment conditions’, with unemployment dropping to pre-2009 levels.
The main points of interest for the Fitch assessment over the next period will be the course of public finances in Cyprus, macroeconomic data and balance of payments.
The finance ministry welcomed the fact that Fitch kept Cyprus at this high level, interpreting the upgrade as a sign of more to come, in 'recognition of the positive standard maintained in the past few years and good prospects in spite of major financial and geopolitical challenges in the international arena.
It also notes that this well earned credibility was a result of public finance discipline and rational fiscal policies that is essential 'to preserve in order to realise additional future upgrades’.
Finance minister Makis Keravnos said he was pleased with the Fitch assessment as a well as a Moody's positive step last, as proof of the country's 'excellent economic performance and relevant government policies supported by credit rating agencies'.
‘We will make the economy even more resilient and competitive’, he concluded.