Cyprus’s Finance Minister presented an initial economic assessment to cabinet on Wednesday as the government acknowledged the regional crisis was beginning to affect the island’s economy, with flight cancellations the most visible sign of the damage so far.
Government Spokesperson Konstantinos Letymbiotis said the key factor in determining the full economic impact would be how long the regional crisis lasted.
He said the government was carrying out daily assessments in line with new developments and that Cyprus’s economy was resilient, pointing to solid growth, reduced public debt, a budget surplus, and very low inflation as indicators of the state’s capacity to weather the situation and support citizens.
On flight cancellations, Letymbiotis said the disruption was the result of airline decisions and the closure of regional airspace rather than anything specific to Cyprus.
He said some airlines had already announced they would resume flights from Thursday, with others expected to return in the coming days.
Asked whether a plan existed to protect the tourism sector, Letymbiotis said any such plan would first require a clearer picture of the scale and duration of the crisis. Cyprus was examining the issue in contact with the European Union, he said.
Pressed on whether the Finance Minister had briefed cabinet on how long state reserves would last under an extreme scenario, Letymbiotis declined to give figures, reiterating that the economy was in a strong position and that assessments were being updated daily as the situation developed.
Read more: