Nicosia, Cyprus. Government spokesman Konstantinos Letymbiotis said Cyprus is conducting ongoing assessments of the economic impact of the regional crisis caused by the conflict with Iran. He said the duration of the crisis will determine the scale of consequences for the country.
Ongoing evaluations and initial estimates
Speaking during a briefing at the presidential palace, Letymbiotis said preliminary evaluations have already been carried out by the government. He described the issue as one that concerns the entire region, the world, and the European Union.
Letymbiotis said that, at the level of the Republic of Cyprus, initial estimates have been made. He added that Finance Minister Makis Keravnos provided an initial briefing and held an exchange of views during a cabinet meeting.
Duration seen as decisive factor
Letymbiotis said the decisive factor that will define the outcome is how long the regional crisis will last. He said the government and the finance ministry’s economic team are continuously evaluating developments.
Emphasis on fiscal management
Letymbiotis highlighted the importance of responsible fiscal management during periods of uncertainty, saying assessments are being carried out. He said that in extraordinary and unprecedented circumstances, the value of responsible fiscal policies becomes evident in practice.
He said it is important for the Cypriot economy to have solid foundations so that when extraordinary conditions arise, the state has the tools and ability to respond and support citizens where necessary.
How do you think the duration of the regional crisis could affect Cyprus’s economy?