middle east — The Cyprus government warns that the economic fallout from the ongoing crisis in the Middle East will largely depend on its duration. Government spokesman Konstantinos Letymbiotis stated on Thursday that the current situation, notably the conflict with Iran, requires continuous assessment to gauge its impact on the national economy.
During a briefing at the presidential palace, Letymbiotis emphasised that preliminary evaluations have already been initiated. “It is an issue that concerns the entire region, I think the whole world and the European Union,” he noted, indicating the global ramifications of the crisis.
Letymbiotis highlighted the importance of responsible fiscal management, particularly in uncertain times. He reiterated that the government and the finance ministry’s economic team are closely monitoring developments. “The determining parameter, the decisive factor that will define the outcome is how long this regional crisis will last,” he said.
In response to inquiries regarding potential measures to safeguard Cyprus’ tourism sector amid flight cancellations due to the regional turmoil, Letymbiotis clarified that such cancellations are not directly connected to Cyprus. “Flight cancellations do not concern Cyprus,” he explained, attributing them to broader operational decisions by airlines reacting to the crisis.
Some airlines, however, have signalled a return to service, which Letymbiotis indicated as a positive development. “We have already been informed of companies that have announced they will restart their flights from tomorrow, while others will resume in the coming days,” he said.
The government is actively considering the possible impacts on tourism and other sectors, with any support measures hinging largely on the crisis’s duration. Letymbiotis reassured that everything is being evaluated to ascertain how industries could be supported, emphasising the need for a timely response as circumstances evolve.
Amid concerns about the resilience of state finances, Letymbiotis conveyed confidence in the country’s economic position. He pointed out key macroeconomic indicators that affirm Cyprus’ stability, including growth rates, declining public debt, and a budget surplus. “The growth rate, the reduction of public debt, the surplus held by the Republic of Cyprus and the very low inflation rate in our country demonstrate that the state is in a position to respond and support citizens in this unprecedented crisis,” he stated.
Yet, he underscored that a full assessment of the situation would depend on international and regional developments. “In order for a comprehensive evaluation to take place, it must be examined in relation to international and regional developments and the period during which these are unfolding,” Letymbiotis explained, assuring that evaluations are ongoing.
