Cyprus has demonstrated economic resilience despite the war involving the United States and Iran and wider instability across its neighborhood, Foreign Minister Constantinos Kombos told Greek Reporter on Thursday on the sidelines of the United Nations General Assembly in New York.
Kombos said the country’s economic indicators remain strong and expressed optimism about tourism, arguing that Cyprus could overcome losses caused by the outbreak of the conflict and potentially improve on last year’s performance.
“We have shown resilience as an economy precisely because of this economic mix,” Kombos told Greek Reporter, stressing that the country is not dependent solely on tourism.
His assessment comes as Cyprus, the European Union’s southeasternmost member state, faces the economic consequences of instability unfolding unusually close to its shores. Its location in the Eastern Mediterranean has repeatedly placed the island near major crises in the Middle East.
Kombos: Cyprus economy remains on a “very positive trajectory”
Asked how seriously the regional situation had affected Cyprus and how concerned the country should be about its economic consequences, Kombos pointed to growth, employment, public debt and tourism.
“The economic indicators are very positive,” the foreign minister said. “The messages regarding tourism are extremely positive, given the situation.”
Kombos said there are indications that Cyprus could not only make up tourism losses caused by the beginning of the conflict but potentially surpass last year’s performance, which he described as a record year.
The minister also cited economic growth of more than 3 percent, unemployment below 3 percent and declining public debt. He said the government’s projection was for debt to fall to around 41 to 42 percent, presenting the figures as evidence of the economy’s ability to withstand external shocks.
Tourism, meanwhile, has felt the impact of this year’s turmoil. Official figures show 2.82 million tourist arrivals between January and August, 7 percent fewer than during the same period in 2025. August’s decline was considerably smaller, at 3.3 percent year-on-year.
Kombos nevertheless expressed confidence that the sector could recover further, while emphasizing that Cyprus’s broader economic base provides protection from disruptions affecting any single industry.
“Geography is what it is”
The foreign minister rejected the idea that Cyprus should be alarmed simply because of its proximity to the countries involved in the turmoil.
“There is no reason for us to panic because of what is happening in our neighborhood and because of our proximity to these countries,” Kombos said.
“Geography is what it is. Geography did not emerge this week,” he added.
The government’s task, he said, is to do what it can to maintain the conditions necessary for continued economic progress.
“We are affected, like everyone else,” Kombos acknowledged. But based on the economic indicators currently available, he said, Cyprus remains on a “very, very positive trajectory.”
That resilience has become increasingly important for the divided island situated at the crossroads of Europe and the Middle East. Cyprus has in recent years also served as a staging point for humanitarian operations and evacuations during crises in the region, underscoring how its geography can simultaneously create economic and security exposure and give the country a strategic regional role.
Cyprus’ Response to Erdogan
Kombos was also asked about Turkish President Recep Tayyip Erdogan and whether he had anything to add to the message delivered a day earlier by Cypriot President Nikos Christodoulides from the UN General Assembly podium.
Christodoulides had challenged Erdogan over Turkey’s position on Cyprus, accusing the Turkish president of invoking international law while Ankara continues to support a two-state solution on the divided island.
Kombos declined to expand on the president’s remarks.
“I think it would be inappropriate on my part, 24 hours after the president spoke from the most official platform of the international community, to add anything beyond what the president said,” the foreign minister told Greek Reporter.
Christodoulides used his UN address Wednesday to call for the resumption of negotiations within the established UN framework, while Erdogan again called for international recognition of the self-declared “Turkish Republic of Northern Cyprus.” Turkey is the only country that recognizes the breakaway entity in the northern part of Cyprus, which the international community considers part of the Republic of Cyprus.
See all the latest news from Greece and the world at Greekreporter.com. Contact our newsroom to report an update or send your story, photos and videos. Follow GR on Google News and subscribe here to our daily email!
