Strong growth figures in Cyprus are not filtering through to lower income groups, largely because of structural shortcomings that have yet to be properly addressed, according to Paphos Chamber of Commerce and Industry (Evep) president George Mais.
In comments to the Cyprus News Agency (CNA), Mais said “headline performance can give a misleading picture, as underlying pressures, particularly around housing and living costs, continue to weigh on a significant part of the population”.
Looking at Paphos specifically, he said tourism and services, which form the backbone of the local economy, enjoyed an exceptionally strong year.
Tourist arrivals reached record levels, while revenues across the sector rose accordingly, reinforcing tourism’s role as the area’s main growth engine.
That strength, however, has not translated into easier access to housing. Mais said owning a home is now out of reach for many households, arguing that the state needs to move faster on workable affordable housing measures.
He also pointed to the banking sector, saying mortgage products must become more flexible and longer-term, as current interest rates are making first-time purchases increasingly hard to sustain.
Beyond tourism, he said investment activity remains solid, particularly in technology, energy and transport, sectors that continue to support growth and diversification.
Even so, he warned that confidence is being tested by factors largely outside Cyprus’ control.
Ongoing geopolitical tensions, from Ukraine to the Middle East and the wider region, are feeding uncertainty, he said, while at home he expressed concern over rising state expenditure, including payroll and administrative costs, which Mais described as placing additional strain on the economy.
